Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Billionaires Dumping Apple As It Falls Out of Their Top Five Holdings

Page 1 of 2

The headlines on CNBC, Reuters and several other news sites following the May 15 deadline for 13F filings for the reporting period of March 31 screamed “top hedge funds dumping Apple” left, right, and center. The headlines were clearly for effect to some extent, as while numerous investors did sell out of Apple Inc. (NASDAQ:AAPL), our own data suggests there was no great sell-off of Apple’s shares, at least not among the top money managers in the world.

Apple Inc. (NASDAQ:AAPL), Apple, Watch, Display, Innovation, interface, App

Giuseppe Costantino/

Overall, fund ownership increased slightly to 150 while the aggregate total of those funds’ invested capital climbed to $21.52 billion, an increase of 3%. However, given that Apple’s shares were up by nearly 13% during the first quarter, we do see that there was an overall decrease in share ownership among funds. Interestingly, the opposite phenomenon was true when looking solely at the billionaires we track. While several billionaires dumped their Apple Inc. (NASDAQ:AAPL) holdings completely, dropping billionaire ownership to 16 from 19, the capital they have collectively invested in the stock actually increased by over 22% to $13.05 billion. That easily outpaced the growth of the stock, indicating that billionaires (the top money managers in the world) collectively owned more Apple shares than they did at the start of the year.

What that strange dichotomy in activity among money managers means is open for interpretation. Less wealthy fund managers may feel the easy money has now been made in Apple Inc. (NASDAQ:AAPL), which has ridden a 7:1 stock split in June, 2014 and the overwhelming success of its iPhone 6 smartphones shortly afterwards to nearly 50% gains in its stock over the past year. Without any major growth catalysts in the foreseeable future save for yet more iPhone 6 models, which are likely to meet much stronger resistance than their forebears did, it’s hard to see where Apple, which owns one of the most profitable businesses ever, will drum up enough revenue growth to have a material impact on the stock over the next few quarters.

There is of course the Apple Watch, though somewhat-aggressive projections for the sale of that product have already been baked into Apple’s shares to some extent and the Watch may not even deliver on those; Morgan Stanley analyst Katy Hubert had predicted 36 million units sold in the first year of its release, which seems to be in jeopardy given that reports are indicating orders for the smartwatch have dropped dramatically after its first day of pre-order availability. When the device is made available in stores sales will no doubt spike again and the 2015 holiday season will no doubt lead to another sales spike and added interest in the device, but a more modest projection at this point might consist of 20 to 25 million sales, which may not do much to stem the tide of declining Mac and iPad sales.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!