One of the world’s largest public pension funds, South Korea’s National Pension Service (NPS), made significant changes to its portfolio of U.S.-traded stocks in the fourth quarter of 2024. The pension fund, which manages approximately $720 billion in assets as of December 31, 2023, initiated a position in Super Micro Computer (NASDAQ: SMCI), increased its holdings in Palantir Technologies (NYSE: PLTR) and Target (NYSE: TGT), while simultaneously reducing its stake in Chipotle Mexican Grill (NYSE: CMG). These transactions were disclosed in a Form 13F filing with the Securities and Exchange Commission (SEC).
NPS, headquartered in Jeonju, South Korea, did not provide comments on the investment changes.
Super Micro: A Wild Rides in the Tech Sector
Super Micro Computer, a server manufacturer at the heart of the artificial intelligence (AI) boom, has been a particularly volatile stock. The company ended 2024 with a modest 7.2% gain, compared to a 23% rise in the S&P 500 index.
However, Super Micro’s stock price has been anything but stable:
- In March 2024, shares peaked at $122.90, reflecting a 300% year-to-date gain.
- By November, the stock had plummeted to $17.25, marking a 40% year-to-date loss.
- The stock rebounded to close the year at $30.48.
- In early 2025, shares have climbed 19%, while the S&P 500 is up 2.5%.
Investor enthusiasm for AI and the surge in data center construction initially propelled Super Micro’s stock. The rally peaked in March when the company was added to the S&P 500. However, in August, short-seller Hindenburg Research released a damning report alleging accounting irregularities, undisclosed related-party transactions, and compliance issues. Super Micro declined to comment on these allegations, but investor confidence took a hit.
- In September, Nasdaq issued a non-compliance notice due to delayed earnings filings.
- October saw Ernst & Young, the company’s auditor, resign.
- In November, Super Micro submitted a plan to regain compliance with Nasdaq listing requirements and hired a new auditor.
- January 2025: Hindenburg Research closed its position in Super Micro.
Amid this turbulence, NPS acquired 949,220 Super Micro shares in Q4, initiating its first position in the company.
Palantir Technologies: A Strong Performance Amid Growth
NPS also purchased 1.9 million shares of Palantir Technologies (PLTR) in the fourth quarter, increasing its total holdings to 4.9 million shares.
Palantir, a data analytics and AI firm, had a remarkable 2024:
- September: Palantir was added to the S&P 500.
- December: The stock was included in the Nasdaq 100 index, following its transfer from the New York Stock Exchange.
- February 2025: A strong earnings report further boosted its stock price.
These milestones fueled a 78% surge in Palantir’s stock in 2024, with an additional 47% increase in early 2025.
Target Corporation: Mixed Results in Retail
NPS increased its investment in Target (TGT) by acquiring 488,350 shares, raising its total stake to 1.5 million shares.
Target faced a challenging 2024, with its stock declining 5% for the year and slipping an additional 2.8% in early 2025.
- November 2024: A disappointing Q3 earnings report sent shares plummeting 22% to $121.72.
- Concerns: The company prepared for potential port strikes and softer demand for discretionary goods.
- January 2025: Holiday sales showed signs of recovery, helping stabilize investor sentiment.
Chipotle Mexican Grill: A Leadership Shakeup
NPS sold 609,580 shares of Chipotle (CMG), reducing its total holdings to 3 million shares.
Chipotle stock gained 32% in 2024, but has declined 5% so far in 2025.
- August 2024: CEO Brian Niccol resigned to take over as CEO of Starbucks (SBUX).
- February 2025: Q4 earnings report showed mixed results—earnings exceeded expectations, but revenue missed.
- 2025 Guidance: Chipotle adjusted its forecast for same-store sales growth, leading to cautious investor sentiment.
Conclusion: NPS Adapts to Market Trends
South Korea’s National Pension Service continues to strategically manage its massive investment portfolio amid market fluctuations. Its recent moves highlight a focus on high-growth tech stocks like Super Micro and Palantir, while adjusting positions in Target and Chipotle in response to sector-specific challenges.
For investors, these trades offer insights into how one of the world’s largest pension funds is positioning itself in a volatile market.
