What happened

On Aug. 5, 2025, Tredje AP-fonden disclosed a $196 million purchase of Alphabet(GOOGL -0.18%) shares in a newly filed quarterly 13-F report. The Swedish pension fund increased its stake in Alphabet, acquiring 1,198,264 shares during the second quarter of 2025.

As of June 30, 2025, the fund’s updated position totals 3,484,052 shares, valued at $614.83 million as of August 4, 2025. The disclosure was made in a quarterly filing available here with the U.S. Securities and Exchange Commission.

What else to know

The Alphabet purchase raised the stake to 4.9% of Tredje AP-fonden’s reportable assets under management (AUM) as of the second quarter of 2025.

Top holdings after the filing:

1. Microsoft: $1.14 billion (9.1% of AUM) as of June 30, 2025
2. Nvidia: $1.02 billion (8.2% of AUM) as of June 30, 2025
3. Alphabet: $614.83 million (4.9% of AUM) as of the second quarter of 2025
4. Apple: $604.46 million (4.8% of AUM) as of June 30, 2025
5. Amazon: $585.21 million (4.7% of AUM) as of June 30, 2025

Alphabet shares were priced at $195.04 on Aug. 4, 2025, up 14.2% over the past year but underperforming the S&P 500 by 2.0 percentage points.

Dividend yield stands at 0.42% as of August 4, 2025, while the forward price/earnings ratio is 19.62.

Alphabet’s five-year revenue compound annual growth rate is 16.7%, based on total revenue for the five-year period ending 2025.

Company overview

Company snapshot

• Offers a broad portfolio of products and platforms including Search, YouTube, Android, Google Cloud, Google Maps, hardware devices, and Google Play digital content.
• Generates revenue primarily through digital advertising, cloud services, and sales of devices and digital content, leveraging a global user base and extensive data infrastructure.
• Serves consumers, businesses, and enterprises worldwide, with a focus on digital engagement, productivity solutions, and cloud computing.

Alphabet operates at global scale with a diversified technology platform, integrating core search and advertising businesses with rapidly growing cloud and enterprise offerings.

Foolish take

Tredje AP-fonden (AP3) is a part of Sweden's national pension system. It's a government-backed fund mandated to manage assets for the country's centralized pension plans. Seeking an annual return of at least 3.5% above that year's Swedish inflation rate, AP3 has built a diversified portfolio of stocks, real estate, bonds, and other assets.

Combined, the four AP funds invest roughly 18% of the pension system's assets. AP3's return was 10.3% in 2024, resulting in approximately $57 billion of assets under management, calculated with today's foreign exchange rates.

Alphabet is one of the largest holdings of this important fund, but still represents less than 5% of AP3's total assets. Boosting this position by 51% in the first half of 2025 is a fairly gutsy move.

AP3's fund managers rarely explain their stock picks in great detail, focusing on broad economic themes instead. However, an Alphabet increase of this magnitude suggests that they saw strong value in this stock in the first half of 2025.

Glossary

13-F report: A quarterly filing by institutional investment managers disclosing their U.S. equity holdings to the SEC.AUM (Assets Under Management): The total market value of investments managed on behalf of clients by a fund or institution.Quarterly filing: A report submitted every three months to regulatory authorities, detailing a fund's holdings and activities.Dividend yield: The annual dividend income expressed as a percentage of the current share price.Forward price/earnings ratio: A valuation metric comparing a company's current share price to its projected future earnings per share.Compound annual growth rate (CAGR): The average annual growth rate of an investment over a specified period, assuming profits are reinvested.Reportable AUM: The portion of a fund's assets required to be disclosed in regulatory filings, such as the 13-F report.Equity portfolio: A collection of stock investments held by an individual or institution.Position: The amount of a particular security owned by an investor or fund.TTM: The 12-month period ending with the most recent quarterly report.