Apple and Google Best Choices for Hedge and Mutual Fund Investors

August 28, 2013 Ryan James In the News

Hedge funds made Apple stocks their darling during the second quarter of this year, according to information garnered by Citigroup Inc. Data showed that eleven out of fifty hedge funds were holding Apple in their portfolios among the top-ten stocks. Apple was more popular among hedge funds than other popular bets, including the travel website Priceline and the producer of iPhone, Qualcomm.

In general hedge funds were voting more for the IT sector than before, while Twenty-First Century Fox gained more than any other stock, according to Citi’s quarterly top-ten stocks review. They were featured in eight top-ten lists of hedge funds.

In the mutual fund sphere Google was the big winner, going up in value a healthy 10.9 percent. This performance outshone the S&P 500 by 850 basis points. In general the Citi report showed that mutual funds favored the healthcare sector, despite its love of Google, for good reason according to Tobias Levkovich, the lead author of Citi’s report.

“The portfolio of top holdings for mutual funds (up 5.5 percent) outperformed the S&P 500 due to its overweight posture in health care names,” Levkovich said.

“Compared to mutual fund top holdings, the portfolio for hedge funds rose a more meager 2.3 percent and underperformed the S&P 500, albeit by just 10 bps in the second quarter, likely based on the greater preference for IT.”

Apple, Google, iPhone, Priceline, Qualcomm,

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