Both the city and state pension funds are invested in Palantir, with New York City’s five systems holding 2.57 million shares worth $457 million as of Dec. 31, according to a spokesperson for Comptroller Mark Levine. The state has a similar exposure, with investments valued at $437 million as of September. The holdings are through passive investments such as index funds, according to the systems.
The actions come after both Levine and New York State Comptroller Tom DiNapoli raised questions about Palantir’s contracts with the federal government following an escalation of immigration-enforcement efforts around the US as part of the Trump administration’s push to crack down on undocumented migrants.
“Recent fatal shootings in Minneapolis, as well as ICE activities more broadly, have drawn nationwide protests and intensified scrutiny of federal enforcement operations and highlighted material reputational and human rights risks to Palantir,” Levine said in a Feb. 4 letter to Alexandra Schiff, one of the company’s board members. He called for an independent review of Palantir’s work with DHS and ICE.
A spokesperson for Palantir didn’t reply to a request for comment.
Palantir’s shares fell 5% to $132.55 at 1:19 p.m. in New York on Thursday extending losses this year to more than 25%. The stock jumped last year by 135%, which is one reason why the holding has grown so large.
Public pensions across the US wield large influence as stewards of billions in retirement funds for millions of Americans. New York City’s five pension systems have assets of over $311 billion, while the state’s fund has about $291 billion in investments. Both Democrats and Republicans have utilized that investment power as a way to drive policy. Officials in Texas, for example, prohibited certain public funds from investing in financial firms the state deemed as hostile to the oil and gas industry.
In a January letter to Palantir Chief Executive Officer Alex Karp, DiNapoli asked the company to provide clarity regarding the scope of its dealings with the federal government agencies as well as its risk-management approach, according to a copy of the letter provided to Bloomberg News. He also pressed the company to fully disclose its political spending and contributions, according to a spokesperson for his office.
“The Comptroller will continue holding portfolio companies accountable and consider all available options consistent with his fiduciary duty,” the spokesperson said.
–With assistance from Martin Z. Braun.
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