CalSTRS Ups Trump Media Stake Despite 'Unprecedented And World-Changing' Risks

Market Overview - In the first 100 days of 2025, the stock market faced one of its worst starts in decades, resulting in significant losses for investors, including large pension funds like CalSTRS [1] - CalSTRS Chief Investment Officer Scott Chan highlighted "unprecedented and world-changing" risks primarily related to policy changes under the Trump administration, including tariffs that have created market uncertainty [2] Investment Strategy - CalSTRS is concerned about tariffs, potential recession, and geopolitical tensions, particularly regarding U.S. involvement in conflicts like the Russia-Ukraine war and NATO's future [3] - The pension fund increased its stake in Trump Media & Technology Group (DJT) by 21,004 shares, or 28%, bringing its total to 95,463 shares valued at $1.87 million as of the end of March [4] Portfolio Adjustments - Despite increasing its position in DJT, CalSTRS reduced its stakes in several top holdings, indicating a defensive strategy focused on fixed income and cash due to economic concerns under Trump [4] - The fund aims for a 30-year target of 7% annual returns to meet retirement obligations, but the stock market drop and underperformance of investments like Trump Media could jeopardize these returns [5] Controversial Holdings - CalSTRS holds significant positions in major companies, including Tesla (1.5% of assets), Apple (6.5%), Microsoft (5.2%), NVIDIA (5.2%), Amazon (3.5%), and Meta (2.5%) [7][9] - The pension fund received numerous requests to divest from Tesla, particularly due to controversies surrounding CEO Elon Musk's actions, reflecting growing pressure from stakeholders [8][9]