California’s Second-Largest Public Pension Fund Shakes Up Portfolio: Boosts MicroStrategy and Nu Holdings, Trims Dollar General and Celsius
The California State Teachers’ Retirement System (Calstrs), the nation’s second-largest public pension fund, made significant changes to its investment portfolio in the fourth quarter, increasing its stakes in MicroStrategy (MSTR) and Nu Holdings (NU) while cutting back on Dollar General (DG) and Celsius Holdings (CELH).
Calstrs Expands Bet on Bitcoin Play MicroStrategy
Calstrs added 32,191 shares of MicroStrategy, bringing its total holdings to 285,785 shares. The move aligns with the stock’s strong performance in 2024, when it soared 358%, significantly outperforming the broader market. However, MicroStrategy has faced a 12% pullback in 2025 despite the S&P 500 inching up 1.2%.
MicroStrategy, primarily known for its aggressive Bitcoin accumulation strategy, has been a high-volatility play, often mirroring Bitcoin’s price movements. The company’s strategy of using stock and debt offerings to acquire more Bitcoin has made it a unique asset among publicly traded firms. In early February, its preferred stock was yielding an attractive 9%, drawing income-focused investors.
Nu Holdings: A Growing Fintech Powerhouse
Calstrs also increased its position in Nu Holdings by purchasing 1.1 million additional shares, bringing its total stake to 1.4 million shares. The fintech giant, backed by Warren Buffett’s Berkshire Hathaway and ARK Invest’s Cathie Wood, is known for its strong presence in Latin America.
Nu Holdings operates Nubank, a digital banking platform targeting underbanked populations in Brazil, Mexico, and Colombia. The stock climbed 24% in 2024 and has gained 3.8% so far in 2025. However, Berkshire Hathaway recently halved its Nu Holdings stake to 40.2 million shares, a move that may indicate a shift in Buffett’s strategy.
Trimming Underperformers: Dollar General and Celsius Holdings
Calstrs reduced its stake in Dollar General by selling 69,336 shares, leaving it with 281,385 shares. Dollar General stock faced a brutal 2024, plummeting 44% amid weak earnings and cautious forward guidance. Despite this downturn, some analysts remain optimistic, arguing that sentiment is so low that even minor improvements could trigger a stock rebound.
Similarly, the pension fund sold off 113,544 shares of Celsius Holdings, cutting its position to 143,579 shares. Celsius struggled last year as PepsiCo, its major distribution partner, reduced inventory levels, leading to weaker-than-expected financial results. The stock tumbled 52% in 2024 and has declined another 2.5% in early 2025. Analysts believe that as Pepsi’s supply-chain adjustments stabilize, Celsius may see revenue recovery.
Strategic Moves Reflect Market Trends
Calstrs, which managed approximately $352.9 billion in assets as of January 31, employs a mix of passive and active investment strategies. The fund’s holdings shift due to various factors, including rebalancing efforts and corporate actions.
While the pension declined to comment on its recent stock moves, its actions highlight a focus on high-growth tech and fintech stocks while scaling back exposure to struggling retail and consumer discretionary names.
Market Implications
Investors tracking institutional movements may view Calstrs’ increased exposure to MicroStrategy and Nu Holdings as a bullish signal for the tech and crypto-related sectors. Meanwhile, its reduction in Dollar General and Celsius could reflect broader concerns about consumer demand and economic headwinds affecting these businesses.
With market volatility persisting, it will be interesting to see how these strategic shifts play out in the months ahead.
