Apple stock may be falling, but don’t tell the hedge funds!


Hedge funds certainly aren't viewing AAPL as a disaster.
Photo: The Dark Knight

Analysts may be tripping over one another to proclaim the sky is falling for Apple, but apparently no-one told hedge fund managers because (surprise, surprise!) it turns out they’re not in a hurry to get rid of their AAPL stock at all.

Far from it, in fact.

According to disclosures made with the Securities and Exchange Commission (SEC), Cabot Wealth Management boosted its Apple holdings by 0.8 percent in Q4 2015, giving it a total of 88,709 shares — worth $9,338,000 at the end of the most recent reporting period.

Lowe FS also increased its stake in Apple by 0.6 percent, while Creative Planning bought the equivalent of $338,000 during the year’s fourth quarter, Oakmont Partners upped its Apple investment to 3,856 shares valued at $406,000, Capital Management purchased 1,129 extra shares for a total value of $417,000, and Harvest Management increased its AAPL shareholdings by 20 percent to bring its total Cupertino stock value to $463,000.

While it could certainly be argued that many of these increases in AAPL stock were made before the recent market turbulence, it definitely strikes me as strange that analysts would be predicting doom and gloom at the same time many (although not all) hedge funds are doubling-down on their Apple holdings. Or maybe I’m missing something?

Source: EMQ

  • AAPL.To.Break.$130.Soon>:-)

    Based on Google Financial institutional ownership percentage, Apple ownership doesn’t seem to be rising at all. It hangs around 59% and it’s been that way for a year or so. I find it very strange. Stocks like Hewlett-Packard, Intel Corp. and Yahoo seem to retain such high institutional ownership even if their stock prices are struggling. Apple gives a fairly generous dividend and even that doesn’t help raise ownership.

  • Wes

    Retail has grown from 38% to 41% in the last reported quarters ownership records. Institutions have continued to sell shares to retail and Apple at bargin PE valuations. Apple may unleash a huge buyback this month if the share price stays below $120. The other business is 33% of the revenue and growing faster than the IPhone. The 33% of the revenue is more than Google’s revenue and so it could be that the IPhone will have less value on the share price.

  • Bud777

    It feels like the author cherry picked hedge funds to make his point. The size of these positions seems very small. It would be a better article if there where more context