In a discussion with Scott Wapner and CNBC traders Joseph Terranova, Stephen Weiss and Jon Najarian, Pzena was asked who among the CNBC traders had the best portfolio. He says that it is hard to argue with the picks of Jim Lebenthal who is up 13% and is leading in CNBC’s tally for their Trader of the Year award.
However, the Pzena Investment Management, Inc. (NYSE:PZN) founder and current Co-Chief Investment Officer says that he is reluctant to own Apple, which owns one of the most profitable businesses ever, even if the stock is a pick in multiple portfolios in the CNBC Trader of the Year contest.
“The only one in that list that I have difficulty with is Apple which is a hard one to have difficulty with since it’s in more than one portfolio. But to really like Apple, you have to believe that they are able to sustain this margin structure that has no precedent in history for either them of for any other consumer electronics company. They have obviously kept it up now for four or five years so betting against that is probably not a smart thing to do. But for me, you are just playing against the odds with Apple,” Pzena told the CNBC traders.
Meanwhile, Joseph Terranova, the trader who won the network’s contest last year, says that he has sold his Apple Inc. (NASDAQ:AAPL) stake. However, he adds that the most probable winning strategy for now is to own the stock. He did say, nonetheless, that he and his firm is moving on from the stock after they have sold it.
He adds that he believes the market generally goes through cyclical periods when momentum builds in companies like Apple Inc. (NASDAQ:AAPL) and sectors such as technology. Terranova also says that the market is in one of the periods now where it is evaluating where the next momentum is going to be.
David Einhorn’s Greenlight Capital owned about 8.61 million Apple Inc. (NASDAQ:AAPL) shares by the end of last year.
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