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This Hedgie Sold A Bunch Of Apple (AAPL) And Put It Into These Tech Stocks

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NWI Management, led by fund manager Nellapalli Neelakantan Hariharan, known as “Hari”, a graduate from Indian Institute of Management in Ahmedabad India, is a New York-based hedge fund founded in 1999 by Hariharan that employs a macro short/long strategy for its investments. According to its 13F filing for the period March 31, the fund had a public equity portfolio of $799.67 million, dominated by finance at 32% of that capital, and technology with 26%. In this article we’re going to take a closer look at some of the tech stocks Hariharan made a move in after dumping some of his Apple Inc. (NASDAQ:AAPL) position during the first quarter. NWI Management sold off 20% of its stake in Apple while adding to its positions in Google Inc (NASDAQ:GOOGL), and Alibaba Group Holding Ltd (NYSE:BABA).

Apple Inc. (NASDAQ:AAPL), Logo, Big, Sign, Brand, Steel, White

FooTToo /

Let’s first take a step back and analyze how tracking hedge funds can help an everyday investor. Through our research we discovered that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month on average between 1999 and 2012. On the other hand the most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. This is likely a surprise to many investors, who think of small-caps as risky, unpredictable stocks and put more faith (and money) in large-cap stocks. In forward tests since August 2012 these top small-cap stocks beat the market by an impressive 84 percentage points, returning over 142% (read the details here). Follow the smart money into only their best investment ideas all while avoiding their high fees.

Hari Hariharan
Hari Hariharan
NWI Management

Let’s begin with the largest first, namely the 27,600% increase in Alibaba Group Holding Ltd (NYSE:BABA) that gave NWI Management a stake in the Chinese e-commerce conglomerate of 277,000 shares with a value of $23.06 million.  Alibaba, known for being the highest-valued IPO in history as of today, has been traded up and down since it began trading in September of last year. With a drop of 7.5% since then and 16.4% year-to-date, Alibaba hasn’t exactly lived up to the lofty expectations foisted upon it by that record-setting IPO. That’s not to say things can’t change quickly. The e-commerce giant’s entrance into the Indian market, one which was recently initiated and accelerated of late, certainly shows promise. Last week it was revealed that Alibaba has signed a contract with TDI International, a leading advertising agency on the Indian market. This makes TDI not only an important partner, but also Alibaba Group Holding Ltd (NYSE:BABA)’s first official partner in the giant market, one that today has an estimated value of $20 billion and is expected to reach $300 billion by 2030. Earlier this week, Alibaba also formed a partnership with the Indian logistic provider MYPACCO for logistics services in India. During the spring, Alibaba announced that it has taken stakes in the largest domestic phone maker in India as well, Micromax, and if it wasn’t enough, The Wall Street Journal reported that Alibaba is looking to acquire Indian e-marketplace website Indeed, something monolithic is going on India with Alibaba as it makes its first big steps out of China not tentatively, but confidently and aggressively.  Alec Litowitz and Ross Laser from Magnetar Capital seem to like the steps Alibaba is taking, having increased their stake in the company by 145% to 6.46 million shares valued at $537.62 million during the first quarter.

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