A large company specializing in low-volatility equity strategies has recently made major changes to its equity investments.
Gateway Investment Advisers bought more
(ticker: T) and
Communications (VZ) stock, started with a position in
(OXY), and reduced its investment in
General Electric (GE)
in the second quarter. The Cincinnati, Ohio-based advisor disclosed the transactions in, among others, a form it submitted with the Securities and Exchange Commission.
In response to a request for comment, Gateway said, “These transactions were part of a routine rebalancing process and do not reflect a forward-looking assessment of individual companies.”
Gateway manages $10.2 billion in assets. Its “low-volatility strategy aims to get the majority of returns from stock market investments while allowing investors to take less risk than other stock investments,” according to Gateway’s website.
The advisor bought an additional 301,532 AT&T shares with 1.9 million shares of the communications and media giant in the second quarter through the end of June.
AT&T stocks have not kept up with the market year so far. Shares ended the first half of 2021 flat and are down 1.5% so far in July. The
S&P 500 index,
by way of comparison, it rose by 14.4% in the first half and by 0.7% in July so far.
AT&T announced a mega deal in May to combine its media assets, including CNN, HBO and Warner Bros., with those of Discovery (DISCA) in a new third-party entity that will be spun off or divested to shareholders. AT&T shares fell after the announcement; investors were stunned by an expected dividend cut, but insiders bought up shares.
Gateway bought 130,586 additional Verizon stock to close the second quarter with 1.3 million shares of the communications giant. Verizon shares are down 4.6% in the first half and are up 0.8% so far in July.
Verizon’s first quarterly report in May was mediocre. Last month, Verizon agreed: sell his share in digital publishing house Complex Networks. Earlier this year, Verizon agreed to sell most of its Yahoo and AOL assets.
In the first half of the year, western equities were up 80.6% and so far in July by 17.0%.
The optimistic outlook for oil prices led to a surge in Occidental stocks earlier this year. Prices have risen, but remain volatile. We noted that an oil bull named Occidental as its favorite stock.
Gateway bought 316,873 Occidental shares in the second quarter; it hadn’t owned one end of march.
The advisor sold 238,313 GE shares to close the second quarter with 2.5 million shares of the conglomerate. GE shares are up 24.6% in the first half and 6.8% so far in July.
Barron’s reported earlier this month that GE stock seemed poised to see some catalysts. Wall Street seems optimistic about the stocks. GE’s Larry Culp made our latest list of top CEOs. We credited him with dealing with “structural issues that had been delayed for years” as the stock more than doubled in a year.
Inside Scoop is a regular Barron article about stock transactions by corporate leaders and board members – so-called insiders – as well as major shareholders, politicians and other prominent figures. Because of their insider status, these investors are required to disclose stock transactions to the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at email@example.com and follow @BarronsEdLin.