In a significant investment move, trustees of General Electric’s (GE) pension trust have invested $100 million in the Simplify Market Neutral Equity Long/Short ETF (EQLS) during Q3 2021. The investment was revealed through an SEC filing, showing that the trust owned over four million EQLS shares valued at $103.5 million by the end of the quarter.
This substantial investment was made despite the ETF being just two weeks old by the close of Q2 2021. It's noteworthy that this nascent ETF has managed to attract such a sizeable investment from a major entity like General Electric (NYSE:GE)'s pension trust.
While this major investment was made into EQLS, the trust's stake in General Electric remained unchanged at 1.28 million shares. This indicates that while diversifying its portfolio, the trust continues to hold a significant position in GE.
Both General Electric and Simplify chose not to comment on this large-scale investment. Simplify cited its policy of non-disclosure regarding client investments as the reason for its silence. This policy is in place to ensure client confidentiality and to prevent any undue influence on market dynamics due to premature or speculative information.
InvestingPro Insights
Based on the real-time data from InvestingPro, General Electric (GE) has a market cap of $116.47B, and its revenue growth has been accelerating, showing a 36.11% increase in the last twelve months as of Q3 2023. The P/E ratio stands at 12.19, indicating a reasonably priced stock considering the company's earnings.
Two key InvestingPro Tips for GE highlight that the company yields a high return on invested capital and has maintained dividend payments for 53 consecutive years. This information suggests that GE is a company with a strong financial position and a commitment to returning capital to its shareholders, which is likely why the pension trust continues to hold a significant position in GE.
On the other end, the Simplify Market Neutral Equity Long/Short ETF (EQLS) had a 1-week price total return of -0.34% and a 1-month price total return of 4.36% as of the end of 2023. Despite some recent fluctuations, the strong return over the last three months, as indicated in the InvestingPro Tips, may have contributed to the decision of GE's pension trust to invest in EQLS.
For more detailed insights and tips, consider exploring the InvestingPro platform, which offers a wealth of additional information. For instance, there are 11 more tips available for GE and 2 more for EQLS that can provide a deeper understanding of these investments.
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