Does Apple (AAPL) Benefit from the Shift in Investors’ Perception?

Hayden Capital, a value-oriented investment firm, released its third quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio rose in the third quarter and returned 11.6% (net) compared to (3.3%) return for the S&P 500 Index and (3.7%) return for the MSCI World Index. Several holding companies began to exhibit indications of reaccelerating growth in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Hayden Capital highlighted stocks like Apple Inc. (NASDAQ:AAPL) in the third quarter 2023 investor letter. Headquartered in Cupertino, California, Apple Inc. (NASDAQ:AAPL) is a multinational technology company that designs and manufactures smartphones, personal computers, tablets, wearables, and accessories. On December 11, 2023, Apple Inc. (NASDAQ:AAPL) stock closed at $193.18 per share. One-month return of Apple Inc. (NASDAQ:AAPL) was 3.06%, and its shares gained 32.80% of their value over the last three months. Apple Inc. (NASDAQ:AAPL) has a market capitalization of $3.004 trillion.

Hayden Capital made the following comment about Apple Inc. (NASDAQ:AAPL) in its third 2023 investor letter:

“Even Berkshire Hathaway’s most famous investment of the last decade – Apple Inc. (NASDAQ:AAPL) – was based on a similar set up. When Berkshire invested in 2016, Apple’s subscription revenues were just starting to cross ~10% of total revenues. Today, that figure is ~25%.

While operating income has grown +90% from 2016 to 2023, the valuation multiple itself has expanded by ~300%, from ~6x EV/EBIT to ~24x EV/EBIT today.

Investors have evolved their perception of Apple’s products – from that of a “fad” hardware company at risk of competition, to that of a “consumer staple”, a necessary part of a household’s budget…” (Click here to read the full text)

Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 134 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of third quarter which was 135 in the previous quarter.

We discussed Apple Inc. (NASDAQ:AAPL) in another article and shared Eisler Capital’s top stock picks. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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 Disclosure: None. This article is originally published at Insider Monkey.