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Hedge Funds Lost a Bundle After Apple’s Decline

Apple (NASDAQ:AAPL) announced disappointing earnings yesterday and the market punished the stock early this morning. Apple shares are down $25, or more than 4% whereas DJIA is up 0.4%. Hedge funds have been extremely bullish about Apple for a very long time. David Einhorn’s largest position in his portfolio is Apple. He thinks Apple will reach $1 trillion in market cap. Einhorn had 1.5 million shares of Apple in his portfolio at the end of March. Technology guru Philippe Laffont also had a similar amount of Apple shares in his portfolio. Laffont thinks Apple may triple in value. These are of course long-term investments for them. However, losses are losses. Several hedge funds lost a bundle after today’s decline in Apple shares. Here are the 5 hedge funds that lost the most:

CITADEL INVESTMENT GROUP

1. Ken Griffin: Citadel had 2.3 million shares of Apple in its portfolio, so its losses are approximately $50 million. However, Citadel also had around 7.6 million share equivalent of Apple calls and puts in its portfolio. We don’t know the details of these positions.

2. David E. Shaw: D. E. Shaw’s situation is similar to Citadel. It had 2 million shares of Apple and a 1.8 million share-equivalent put position.

3. Rob Citrone: Discovery Capital has been one of the most bullish hedge funds about Apple for a very long time. Today they lost $45 million but they are a long-term winner.

4. Philippe Laffont: Coatue Management lost $37 million today.

5. David Einhorn: Greenlight Capital’s Apple loss is also $37 million.

These calculations are based on end of March portfolio holdings. They may have significantly changed since then. You can check out the other hedge funds that lost a bundle in Apple here.

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