“Hedge funds may have taken too big a bite of Apple Inc.,” David Randall reports for Reuters. “Shares of the iPhone maker are one of the biggest bets among hedge funds, with 47 of them listing Apple among their ten largest holdings as of the end of 2015, according to a report from Goldman Sachs on March 18.”
“At the same time, mutual funds are going the opposite direction: Apple is their second-largest underweight holding, meaning the funds invest less of their portfolio in the company than its percentage weighting in the benchmark S&P 500 index,” Randall reports. “The difference of opinion on Apple, with shares flat year to date, is one reason hedge funds are again lagging.”
“The average hedge fund was down 3.3 percent through February, while the average large-cap core mutual fund fell just 0.8 percent, according to data from fund tracker Morningstar,” Randall reports. Mutual fund managers believe Apple no longer enjoys the outsized prospects it had in the past.””
Read more in the full article here.
MacDailyNews Take: Patience. The second half of the year could be where the action is.
And another reason is: Valeant Pharmaceuticals. Ha!
The usual question:
Q: Who benefits from all the anti-Apple FUD?