“Stock picker futility may be back, courtesy of Apple Inc.,” Lu Wang reports for Bloomberg. “The iPhone maker, under-owned by the majority of actively managed funds according to Citigroup Inc., has jumped 13 percent this month to a record, poised for its best return relative to the S&P 500 in three years. Its contribution to the benchmark gauge is almost four times greater than any other stock. At $81 billion, the increase in Apple’s market cap this month alone exceeds the value of 85 percent of the index’s members.”
“The situation is a fresh blow to money managers who just gave signs of life in January after years of trailing the market,” Wang reports. “While sinking equity correlations have prompted strategists such as Goldman Sachs Group Inc.’s David Kostin to predict a renaissance in stock picking, Apple’s surge is an example of a phenomenon some researchers see as dooming active management — the tendency of just a few shooting-star stocks to dominate indexes.”
“Among some 300 funds that are benchmarked to the S&P 500 and have at least $500 million in assets, only a fifth hold Apple more than its representation in the index, according to latest regulatory filings compiled by Bloomberg,” Wang reports. “These funds have returned an average 4.1 percent this month, compared with 3.1 percent from those that have no stake.”
Read more in the full article here.
MacDailyNews Take: The number of “professional” stock pickers who do not understand Apple is appalling.
…And it is well so!
Some ideals worth far more than to put oneself in knee in front of share orders and egocentric money makers!
Denying reality can only take you so far. All these click-bait apple bears have pretty bad track records, echo each other on poorly supported claims, and seem to have an irrational desire to not understand what makes Apple, Apple.
The numbers will always prove their incompetence, no matter what Apple FUD (the Mother of real Fake News) they ignorantly and arrogantly spew. Historical Fact.
The cream rises to the top and delivers tools to empower people while the crud at the bottom go out on a carnage brutally killing and torturing innocent people and invading lands looking for some iWMD (Weapons of Massive Destruction). I wonder how that’s working out for them. I mean after a decade you think they would have found them.