Ed Lin

A large American public pension exited its position in a tech company and moved more money into quantum computing.

New Jersey's pension sold all of its U.S.-traded shares of Chinese online firm Alibaba Group Holding, initiated positions in quantum-computing firms D-Wave Quantum and Rigetti Computing, and added shares of their peer IonQ in the second quarter.

The pension, which is managed by the New Jersey Department of the Treasury's Division of Investment, disclosed the trades in a form it filed with the Securities and Exchange Commission.

The state's treasury department didn't respond to a request for comment. The pension has net assets under management of about $70 billion.

New Jersey's pension had owned 53,560 of Alibaba's American depositary receipts at the end of March, and ended June with none.

The ADRs soared 34% in the first half of 2025, compared with the 5.5% rise in the S&P 500. So far in the third quarter, the ADRs are up 6.1% and the index is 3.0% higher.

Alibaba reported strong quarterly earnings in February, but missed estimates in May. An Alibaba-backed artificial-intelligence start-up, Minimax, filed for an initial public offering in Hong Kong in July, according to The Wall Street Journal.

The pension made new investments in D-Wave and Rigetti, buying 98,920 shares and 135,890 shares, respectively.

D-Wave claimed "quantum supremacy" in March, meaning its system is capable of performing a task no classical machine could in a feasible amount of time.

D-Wave CEO Alan Baratz has been one of the most outspoken advocates of quantum technology, particularly its commercial applications.

On the other hand, Rigetti focuses primarily on scientific research and development rather than commercial applications.

"Our peer companies are a lot more optimistic and aggressive with their forecasts," Rigetti CEO Subodh Kulkarni told Barron's in March . "We share their enthusiasm for the long-term potential. But when it comes to the next three to five years, we are of a more conservative view."

D-Wave stock surged 74% in the first half of the year and Rigetti stock dropped 22%. So far in the third quarter, D-Wave is up 15% and Rigetti is up 30%.

IonQ saw shares soar 2.9% in the first two quarters of the year. So far in the third quarter, they are down 2.6%.

In March, IonQ Executive Chairman Peter Chapman called for the industry to become more collegial.

"I would hope in the future that there is more sharing and maybe even the ability to work together, because the promise of quantum computing and what it can do for mankind is so significant," said Chapman.

In June, IonQ agreed to acquire British quantum-computing start-up Oxford Ionics for little more than $1.075 billion, mostly in stock. The transaction is expected to close this year.

The pension bought 9,108 more IonQ shares to lift its investment to 77,212 shares at the end of June.

In the past week, both D-Wave and IonQ reported their latest quarters, showing revenue growth, and increased losses.

Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at ed.lin@barrons.com

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(END) Dow Jones Newswires

August 15, 2025 21:31 ET (01:31 GMT)

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