After falling sharply overnight due to the surprise news that Donald J Trump will become the next President of the United States, the markets have opened surprisingly flat, with the S&P 500 and Nasdaq each close to flat and the Dow up by 50 points.
Given the news, let’s take a closer look at why Apple Inc. (NASDAQ:AAPL), Walgreens Boots Alliance Inc (NASDAQ:WBA), SunPower Corporation (NASDAQ:SPWR), First Solar, Inc. (NASDAQ:FSLR), and JinkoSolar Holding Co., Ltd. (NYSE:JKS) are in the spotlight this morning and use SEC filings to determine hedge fund sentiment towards the equities.
Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see the details).
Traders are watching Apple Inc. (NASDAQ:AAPL) after Ireland confirmed that it will appeal the EU’s €13 billion back tax fine on the tech company. Ireland is doing so because the Irish government “fundamentally disagrees with the European Commission’s analysis and the decision left the Government no choice but to take an appeal to the European Courts.” Although that should technically be good news and postpone Apple’s tax hit for a while, Apple shares are down by 1.8%, likely due to Donald Trump becoming President. Although a Trump Presidency will likely allow Apple to bring its overseas cash back to the United States at a low tax rate (and thus allow for more buybacks), the coming Trump administration could also cause Apple’s expenses to manufacture the iPhone to rise. Trump has said multiple times that he wants to bring jobs back home, and that might mean less of an Apple manufacturing presence overseas. David Einhorn‘s Greenlight Capital owned 6.85 million shares of Apple Inc. (NASDAQ:AAPL) at the end of June, down by 17% from the end of March.
Walgreens Boots Alliance Inc (NASDAQ:WBA) is in the spotlight after the company filed a lawsuit against Theranos for breach of contract. In the suit, the pharmacy chain is seeking to recover the $140 million that it invested in the startup. Walgreens is filing a suit because it believes it has been misled about the state of Theranos’ technology. Given the negative publicity that Theranos has had to contend with, the Walgreens suit is only the latest of the startup’s many problems. 67 funds that we track had a long position in Walgreens Boots Alliance Inc (NASDAQ:WBA) at the end of June, down by five funds from the end of March.
On the next page we’ll examine SunPower Corporation, First Solar, and JinkoSolar Holding.