Carl Icahn Is Long Apple Inc. (AAPL)

Carl Icahn is long Apple Inc. (NASDAQ:AAPL).

It’s really just that simple. The meteoric hedge fund manager reported it via Twitter a few minutes ago, and it’s hard to say we didn’t see a big move coming.

Last week, in a feature from the FOX Business Network, we discussed Icahn’s comments on Herbalife Ltd. (NYSE:HLF) and Dell Inc. (NASDAQ:DELL), in addition to his admission that a new position may be coming out very soon. Here was his full quote, on whether or not he had a large position:

“I have to say we do. We may put something out on it relatively soon. I think we’ll put it on Twitter but obviously all the news people are followers. In any event, I think it’s a good thing I want to try to build a following and then see if we can make some changes to corporate governance one day.”

It’s clear that now, Icahn was talking about Apple. Apple Inc. (NASDAQ:AAPL) received another large backer earlier today when we reported that Jim Simons and Renaissance Technologies bought Apple and sold Google Inc (NASDAQ:GOOG) last quarter. With Simons and Icahn, Apple also has billionaire David Einhorn in the fray, along with Christopher R. Hansen and D. E. Shaw.

Carl Icahn - Icahn Capital Lp

Apple is up 3.3%–and climbing–on news of Icahn’s stake, and we can’t help but wonder if he’ll pursue an activist strategy with Tim Cook, Jony Ive and the rest of Cupertino’s management.

Apple Inc. (NASDAQ:AAPL) was the most widely held stock in the top-tier hedge fund universe (of about 525 funds) at the end of the first quarter, so we’ll be watching the aggregate data very closely.

Just to note, shares of Apple currently trade at a forward P/E of 11.04 and a bargain bin PEG below 0.7. We see a few scenarios that can lead shares back to a fairer valuation, including: a deal with China Mobile, a lower cost iPhone for emerging markets, or a groundbreaking device like an “iTV” or an “iWatch.”

Obviously, an activist investor like Carl Icahn can also add value to the company, possible by pursuing a dividend hike or by pushing for a purchase, perhaps of a company like BlackBerry Ltd (NASDAQ:BBRY) or Yelp Inc (NYSE:YELP).

We’ll keep you posted, but in the meantime, check out this video of Carl Icahn’s thoughts on activism and his latest investments (pre-Apple Inc. (NASDAQ:AAPL)):

Disclosure: none

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!