Hedge Funds Dropping Apple Even as Shares Climb

May 19, 2015 Debbie Jacobs Hedge Fund News

Hedge Funds wary of Apple

Hedge Funds wary of Apple

According to Friday’s mandatory regulatory 13F filings, top US hedge fund firms are reducing, or seriously divesting of their stakes in the wildly successful consumer electronics firm Apple Inc.

Philippe Laffont’s Coatue Management sold off 1.2 million shares over the past quarter, but Apple is still the fund’s single largest US holding, with 7.7 million shares still in its possession. Omega Advisors, run by Leon Cooperman, unloaded 383,790 shares of Apple during the first three months of the year. Rothschild Asset Management reduced its stake in Apple by 107,953, leaving 938,683 shares still invested. Another big Apple holder, David Einhorn’s Greenlight Capital sold off 1.2 million shares. They are still holders of 7.4 million shares, for now.

Apple has been a favorite stock for hedge funds, especially last year. Apple returned the favor by rising 38 percent points in 2014. According to analysts who looked at 850 funds with $2 trillion in AUM, 12 percent of the hedge funds included Apple among their top 10 holdings. The analysts point out that, due to its size as the largest publicly traded company in the US- that made it important for “both hedge fund and index performance.”

Not all hedge funds are on the same page, it should be noted. Carl Icahn left his 52.8 million stake in Apple untouched, while Ray Dalios’ Bridgewater Associates added 473,500 shares for a total of 732,997.

Apple, Coatue Management, David Einhorn, Karl Icahn, Leon Cooperman,

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