Apple Can’t Kill Microsoft But It’s Crushing HP

According to our data, the smart money loves Apple Inc. (NASDAQ:AAPL), as it was second most widely held position by elite funds in the second quarter. A total of 144 funds were long the computer maker in the latest round of SEC filings, down slightly from 150 from the prior quarter. The hedge funds owned $21.27 billion worth of the company (2.9% of the float) versus $21.52 billion a quarter earlier. Carl Icahn‘s Icahn Capital Lp owns 52.76 million shares while Ken Fisher’s Fisher Asset Management owns 11.01 million shares.

The smart money was also optimistic in Hewlett-Packard Company (NYSE:HPQ) in the second quarter. Of the around 730 elite funds we track, 55 funds were long the computer maker, with a total position of $3.12 billion (representing 5.80% of the float) in the latest round of 13F filings, versus 55 funds and $2.83 billion a quarter earlier. Richard S. Pzena’s Pzena Investment Management owns 17.98 million shares.

The smart money is also bullish on Microsoft. Although the number of funds decreased to 107 from 110, the total value of their holdings in the stock increased to $18.32 billion (representing 5.10% of the float) from $16.13 billion. Jeffrey Ubben‘s Valueact Capital owns 75.27 million shares, good for 17.49% of his portfolio. Ubben acknowledges that Microsoft has lost a step in consumer products, but still thinks Micosoft has plenty of growth ahead, as it makes the basic plumbing that makes small and large businesses function. Ubben bought his shares two years ago when Microsoft shares were ‘stupid [cheap]’ and have been holding on ever since. Shares of Microsoft currently trade at a reasonable 15.4 times forward earnings, lower than the NASDAQ’s forward PE of 17.75.

Disclosure: None