Top hedge fund dumped Apple, bought Microsoft at the end of 2014

“The world’s largest hedge fund picked a bad time to fall out of love with Apple,” Matt Egan reports for CNNMoney. “Bridgewater Associates cut its stake in the iPhone maker in half at the end of 2014, according to regulatory filings revealed this week.”

“Apple has had a red-hot start to 2015 with shares soaring 15% so far this year,” Egan reports. “In fact, Apple is doing so well that it just became the first U.S. company ever to achieve a valuation north of $700 billion.”

“The fund still owns 259,497 shares of Apple,” Egan reports. “But Bridgewater was clearly ready to cash in on some of its Apple winnings and move on. The fund bought Microsoft instead. So far, Microsoft shares are down 8% so far this year, badly trailing a 2% gain for the Nasdaq.”

Read more in the full article here.

MacDailyNews Take: On the Surface, this move seems stupid, but, once you dig deeper, even those with the least serviceable faculties can plainly see that’s it’s morbidly idiotic.

[Thanks to MacDailyNews Reader “BD” for the heads up.]

23 Comments

  1. I can understand taking unrealized gain in AAPL and making it “real.” There will be investments that outperform AAPL in 2015. But why in the world would they put those funds into MSFT? Laziness and/or lack of creativity? The need to do “something” to justify fund manager’s job?

  2. The idiot heard about the $1 Billion in sales of the Microsoft Surface Pro 3.

    I think the idiot has grounds to sue Microsoft. There is no way Microsoft sold $1 Billion worth of Surface Pro 3s.

  3. Most analysts are somewhat removed from reality. Some further than others. They let their own emotional reaction to Apple’s success get in the way of reason. This is a prime example. IF you do that, you will get what you deserve.

    1. If you looked at the actual performance of MSFT over the last 5 years you would see that it grew by over 50%. If you looked at the growth over the last two years, it grew over 50%.

      Who is hopeless here? By the way, I have never owned MSFT but do own nearly 3500 shares of AAPL

    1. NEW YORK (MarketWatch) — Billionaire Ray Dalio’s Bridgewater Associates, which manages about $157 billion in global investments, has so far this year lost out on about $4.6 million by selling half its Apple Inc. shares

  4. And this is why I manage my own money. The so-called “professionals” will, on average, underperform the market as a whole.

    My best-ever investment was buying AAPL in 2003 at a split-adjusted $1.30 or so per share…..at a time when ALL the analysts had a “sell” rating for it.

    My two worst-ever stock moves were done because I read too many analysts options and followed their advice. In Jan 2009, I sold my SCSS because everybody and their brother said they were going bankrupt. I cashed out 18K shares at $0.60/share. If I’d kept it, it’s be worth over half a million today.

    Around the same time, the analysts “talked me out of” buying Budget and Dollar rent-scar stocks. Both were in the toilet, and I was going to put $5K into each, figuring that even if one went other, the other would likely recover and more than compensate.

    As it turns out, neither went under, and that $10K investment would also be worth well over a half million today.

    My very expensive lesson: IGNORE THE ANALYSTS!!!!

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