October 14, 2019

Apple Juices Up the Gains of the Biggest Hedge Funds

Apple's inclusion in the biggest hedge funds's basket of stocks has juiced up their returns.

The stock market is on a tear since the beginning of the year. Apple has dominated the headlines by trouncing Wall Street estimates. Its stock has risen 34% in 2012 increasing its market capitalization to over $500 billion. Fortunately for hedge fund managers, Apple makes up some of their biggest stock holdings. Stephen Taub of Institutional Investor highlights a selection of the managers who have reaped the benefits and how Apple juices up the gains of the biggest hedge funds.

Steve Cohen’s SAC Capital was up 4.5% for the year. This compares with a 9% gain for the S&P 500 during the first two months.

And although he owned more than 2,100 individual issues in his nearly $16 billion equity-oriented portfolio, his $443 million stake in Apple was his largest position entering the new year.

David Einhorn’s Greenlight Capital was up 6% for the year. As of February 29, his largest long positions were Apple, Arkema, General Motors, gold, Market Vectors Gold Miners and Seagate Technology.

Ken Griffin’s Citadel, whose funds were up more than 20% in 2011, is also off to a fast start. The Kensington Fund is up 5.05% through February while Wellington is up 5.2%.

Apple accounted for $5 billion of his $44 billion equity portfolio at the beginning of the year.

Dan Loeb’s Third Point Offshore Fund rose 4.9% for the year. It noted in a monthly report that its five top gainers for the month were Delphi, Apple, a Medco/Express Scripts arbitrage trade, Depfa Bank — a Dublin-based German-Irish bank — and Ally Financial.

Going into March, Apple was Loeb’s fifth largest position. The top four were Yahoo, gold, Eksportfinans ASA — a Norwegian export lender — and Delphi.

With Apple making up some of the largest hedge fund portfolios, the company will be followed closely in the coming months. Managers hopes ride on a continuing healthy appetite for the company’s electronics, like the iPhone and iPad. For now, Apple juices up the gains of the biggest hedge funds.

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