OPERS Shifts Strategy: Amplifies Investments in High-Risk Tech Stocks, Cuts Lyft Stake

The Ohio Public Employees Retirement System (OPERS) has made significant moves in its investment portfolio, doubling down on volatile technology stocks and scaling back its stake in ride-hailing company Lyft (NASDAQ: LYFT). These adjustments, disclosed through recent filings with the U.S. Securities and Exchange Commission (SEC), highlight a strategic focus on pursuing aggressive growth opportunities while de-emphasizing sectors with more tempered returns.

In the second quarter of 2025, OPERS boosted its holdings in Palantir Technologies (NYSE: PLTR) and MicroStrategy Incorporated (NASDAQ: MSTR), while trimming its investment in Lyft. As of December 31, 2024, OPERS managed total assets of $155.6 billion, ranking as the 14th largest public pension fund in the United States.

Palantir Sees Substantial Investment as Stock Soars

Palantir Technologies emerged as a prominent focus for OPERS, with the pension fund increasing its stake by a substantial 171,441 shares in Q2, pushing its total holdings to 908,712 shares. This decision came at a time when Palantir’s stock has been on a strong upward trajectory, skyrocketing 80% during the first half of 2025—far surpassing the S&P 500 Index’s modest 5.5% rise over the same period. The trend has continued into the third quarter, with Palantir shares gaining an additional 13%, compared to the S&P 500’s smaller 1.5% increase.

Palantir's rapid growth has been driven by multiple catalysts, starting with its inclusion in the S&P 500 in September 2024—a milestone that spurred significant purchasing from index-tracking funds. The momentum gained further steam after the company delivered robust earnings reports, culminating in a record stock price of $155.68 per share last Thursday. The data analytics company’s increased market relevance appears to have solidified OPERS’ confidence in its growth trajectory.

Strengthened Bet on MicroStrategy Backed by Bitcoin Holdings

Another major move by OPERS in Q2 was its enhanced investment in MicroStrategy, a company widely known for its Bitcoin-centric investment strategy. The pension fund increased its holdings by 21,499 shares, bringing its total stake to 101,880 shares as of June 30, 2025. MicroStrategy continues to lead as the largest corporate holder of Bitcoin, leveraging over $3 billion in preferred stock offerings to fund additional Bitcoin acquisitions, with interest rates reaching as high as 11.5%.

While this strategy has raised eyebrows among some investors, particularly regarding the sustainability of its high interest rates, MicroStrategy contends that its Bitcoin holdings significantly outweigh its corporate debt. Despite these concerns, the company’s stock surged 40% in the first half of 2025, followed by a further 4.7% gain in the third quarter. OPERS’ increased stake signals confidence in the firm’s growth potential, albeit with an acknowledgment of the inherent risks tied to its cryptocurrency-focused strategy.

Lyft Stake Reduced Amid Operational Challenges

Conversely, OPERS trimmed its investment in Lyft, offloading 58,881 shares in the second quarter to reduce its total holdings to 166,628 shares. This reduction comes even though Lyft’s stock saw a notable 22% climb in the first half of 2025. However, the company’s shares declined by 6.3% during the third quarter, eroding some of those earlier gains.

Lyft’s financial performance, while not disastrous, appears to have given OPERS reason for caution. In its February earnings report, the ride-hailing giant delivered mixed results. Although Lyft attempted to bolster investor confidence by expanding its share buyback program in its Q1 earnings announcement in May, these efforts seemingly did not suffice. Even an upgrade by TD Cowen from “Hold” to “Buy” in June wasn’t enough to alter OPERS’ bearish outlook on the stock. The fund may be considering the competitive pressures Lyft faces, particularly as the autonomous vehicle market heats up.

A Strategic Recalibration: Balancing Risks and Rewards

OPERS’ recent portfolio adjustments signify a bold shift toward higher-risk, higher-reward investment vehicles while scaling back exposure to companies with perceived operational challenges. Palantir and MicroStrategy represent bets on innovation-driven sectors, reflecting optimism for outsized returns compared to traditional market benchmarks. On the other hand, Lyft’s reduced stake underscores a cautious approach in navigating competitive and operational uncertainties.

With $155.6 billion in assets, OPERS’ decisions attract attention not just due to their scale but also because they provide a window into broader market trends. As the fund pivots toward aggressive growth strategies, analysts and investors will monitor whether these high-stakes investments deliver the expected long-term benefits.