More top hedge funds dropped Apple shares in first quarter

“One-time hedge fund darling Apple Inc was dropped by more well-known fund managers in the first quarter, including John Griffin and Chase Coleman,” Aaron Pressman reports for Reuters.

“Shares of Apple were down $19.50, or 4.4 percent, at $424.36 in trading on the Nasdaq on Wednesday,” Pressman reports. “The shares have fallen 40 percent from their all-time peak of $705.07 in September.”

Pressman reports, “Sales of Apple’s popular devices like the iPhone and iPad remain strong, but the company’s profit growth and margins have come under pressure from competitors as well as consumer preferences for lower-cost Apple offerings like the iPad mini… Still, some investors kept the faith. Adage Capital Management, founded by two former Harvard University endowment managers, roughly held steady with 1.3 million shares. The first-quarter moves followed substantial selling of Apple by leading funds in the fourth quarter, including Leon Cooperman’s Omega Advisors and Barry Rosenstein’s JANA Partners.”

Read more in the full article here.

22 Comments

  1. Lets think about this for just one minute.

    “roughly held steady with 1.3 million shares. ” So that means that they are making 3.5 million dollars each quarter for their efforts and can always sell the stock when it next jumps high.

    I say most hedge funds have NO brains. They must listen to these bloggers that we read about. LOL

    1. Then you should apply for a managing position at a large hedge fund. Sounds like you know more than any of them. You should have no problem being hired. Probably pays better than your day job. And if you don’t mind, just what is your outlook on AAPL for the next 60 days? We’d all like to iCal it.

        1. Troll? Hardly. I buy, and really use, more Apple products in one year then you will in a lifetime. When you become the comment monitor we know we’re in trouble. Crawl back in your hole Breeze.

      1. We all know that AAPL is undervalued by all traditional measurement standards (P/E, etc). I don’t believe these hedge fund managers are geniuses, or even experts at evaluating investment opportunities. Many of these funds underperform the markets. Hedge fund managers are herd members too. They simply belong to a different herd from retail investors. They weren’t picked to run these funds because of their expertise at stock valuation, or their ability to predict the future. They are where they are because they can spin a good story. It’s much like the old story about being chased by a bear and having only to outrun one’s companion, not the bear. They only have to better than their peers at the end of the day. If they are so smart, where were they when AAPL was $30? Or $60? Or $100? No, they jumped on the bandwagon after it was about 3/4 of the way down the hill, and they are the first to bail out.

        This has nothing to do with Apple’s fundamentals or future. It’s just the “common wisdom” on the street, fueled by a shallow comparison to Microsoft, Dell, and Nokia. It’s completely uninformed and irrational. These people know next to nothing about Apple or AAPL. If you think they do, and you follow their lead you will be dreadfully sorry. Take a peek at past performance. A monkey with a dart board can do as well as the vast majority of them. Tell me, what hedge fund made 4000% over the last 10 years?

        1. Fidelity was one of the largest shareholders of AAPL. They dumped millions of AAPL shares from September 2012 to December 2012. Their performance over the last 10 years? Had you invested $40 in 2003 it would now be $89. That’s a little better than the DOW where your $40 would now be $75. Compare that to $40 invested in AAPL in 2003. $40 would have bought you 4 shares at $10 each, worth about $1700 today, or 2800 last September. Where were these hedge fund geniuses in 2003?

        2. Zeke, I make my own investing decisions. I try to gather all the information I can and make a rational decision. Usually works for me, but not always. Of course there’s plenty of bullshit spread around Wall Street. But never make the mistake that I see so many make here, assume that analysts don’t know what they’re talking about. Of course they do. It’s just that some are better than others. And I don’t mean when I agree with them either. Why do you think so many people that comment here are underwater? It’s because they believed all the analysts as Apple shot up last summer. The analysts were geniuses then weren’t they? Sure, everybody was making money. On paper. And so many failed to cash in their profits when they should have. Funny how the analysts are all fools now. The same people now have nothing but losses on their monthly statement. It’s because they were greedy Zeke. It’s because they weren’t smart enough to take a profit when they were ahead. And now they want to blame everybody else. Buy and hold forever is not a plan Zeke. I got out in September when it hit $700. And I’ve never been sorry. I had a plan Zeke. Sticking your investment under the
          mattress because you like the company is not a plan. Manage your money or it will manage you. But you can be certain of one thing Zeke, if Apple ever gets close to $700 again most of the people who are underwater now will take their profit. But there will be a few who haven’t learned their lesson and will let greed overtake common sense. You invest for one reason and one reason only Zeke; to make a profit. Why else would you give someone your money? So you can brag to everyone that you’ve held a particular stock for years and years? That’s foolish.

          1. So who do you think you’re lecturing, Mr. Knowitall? I still have a ton of AAPL, and I sell some every month and buy more when the time is right. My AAPL provides a supplemental 5 figure income every year. I never get all in or all out. So run along and “advise” somebody else, little man. I’m doing just fine, and with the increased dividends I’m doing even better.

  2. So, now that we are in the 2nd quarter do they really think we did not know someone sold AAPL in the 1st quarter. My 401K was screaming that long ago. I bet that there were hedge fund managers that sold in the last quarter of 2012 too.

    Really, this is news? Or just ran out of crap to type to knock AAPL down some more.

    1. Hedge funds sold at the end of 2012? Dah! It’s their job to sell when they’re ahead!!!! What? They’re supposed to hold on and lose $300 per share for their customers? Who the hell does that? Oh, sorry. By the way, we are in the third quarter. But hey, let’s talk server farms!

        1. Ummmmmmmm no, not if they bought in early. Simple math. If you sold it for more than you paid for it you made a profit. If you sold it for less than you paid for it you have a loss.

          1. So which is it? If you didn’t sell in September 2012 you’re a loser except if you’re a winner. Is that it? I bought originally at $7.49. It would be hard for me to be a loser, since I’ve already taken out roughly 20 times my original investment over the last 10 years.

            1. I sold when AAPL was at $700 in September Zeke. And I commented about that at the time. I saw quite a few nasty remarks regarding I’d be sorry because its going to $1000! I’ve never been sorry Zeke. And I held in the money long-term options. Calls Zeke. I haven’t owned shares for two years. Too expensive. And I’m sure you bought in at $7.49 Zeke. Of course you did.

  3. The Adage Capital Management good strategy explains why Harvard’s endowment record is the best across the board. Wish there were a way to make the hedge fund jackasses accountable for their stupid decisions. The combination of their hammerlock on the quantity of stock owned and their need to produce only an overall good performance every quarter is why so many small investors are unwilling to do much more than index fund investments.

  4. We must get these jackasses out of the stock at these prices so if they ever come back it will be to drive up the price from much higher levels.

    Google is so thinly traded that it could be moved down huge numbers with small short movements. How much really does the market actually think google has in insight, skill and future earnings generation to maintain its present multiple? Talk about crazy.

  5. I chat online with some pretty smart traders and this is what one of the smartest said today………. Fscuttle I agree with bria, aapl had a nice run up, 420 is a buy for me, having a hard time waiting the next 5 points. have just closed some aapl puts.

    cnbc announcing that one trader and then tepper sold aapl in Q1. If they sold Q1, they lost a lot from purchase price or if they bought a longer time ago, they rode a huge move down and the bailed. too late.
    in context, those are weak hand sales — aapl’s rsi2 is at 3 right now

  6. Hedge fund managers and market analysts may perhaps know their trade but they don’t know Apple and thinking Apple is like any other company will bring analytical failure.

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