“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.]
Run from anyone claiming a crystal ball.
you’d think the biggest hedge fun in the world would take the time to evaluate EGG coefficients +- BUN on a BACN graph.
But the trend in the NUT coefficient clearly supported the hedge fund bet that the underlying BLZ factors would favor Microsoft in the next quarter
Real smart
Well-crafted MDN take. 🙂
I wonder if the guy who recommended dumping Apple for MS is still there?!?
The stupider you are the better. Probably got promoted!
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?
failure to adjust +-BUN relative to EGG on a BACN graph.
He listened to the Anal-yst & got screwed.
All the coke these Wall Street guys are snorting is starting to impact their judgment.
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.
“On the Surface, this move seems stupid, but on an iPad it’s morbidly idiotic.”
–There. Fixed your take, MDN. 😉
They might as well sell the rest if it.
No stocks for you!
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.
“Bridgewater Associates founder and chair Ray Dalio is one of America’s most powerful investors and has an estimated net worth of $15.2 billion”
Ya, what an idiot
I think it’s time he retired and let someone cognizant take over the reigns.
Anyone buying MSFT within the last five years is hopelessly incompetent to manage a hedge fund.
-jcr
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
They just lost a few BILLION dollars!
IDIOTS!
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
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!!!!
Bridgewater Associates…bought Microsoft instead
What was that? I can’t have heard that right.
…bought Microsoft instead
Stunning isn’t it how you can be BIG or you can be small. But you can’t stop stupid.
Time for some changes at Bridgewater Associates.