Why Wedgewood Partners is Betting on Apple (AAPL) Stock

Wedgewood Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The Fund returned 10.77% for the third quarter of 2020. Meanwhile, the benchmark S&P 500 Index and the Russell 1000 Value Index gained 8.93% and 5.59%, respectively. You should check out Wedgewood Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Wedgewood Partners highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) is one of them. Apple Inc. (NASDAQ:AAPL) is a technology company. Year-to-date, Apple Inc. (NASDAQ:AAPL) stock gained 62.1% and on October 16th it had a closing price of $119.02. Here is what Wedgewood Partners said:

“Moving on to the holdings that contributed the most to the portfolio’s absolute return during the quarter, Apple’s revenue growth accelerated to +11% as iPad revenue growth accelerated to its fastest in six years, driven by work from home and distance learning demand. The Company also reported a staggering +550 million paid subscriptions across its services line – nearly three times as many subscribers as Netflix – and up +30% over last year. We expect iPhone demand to accelerate in the coming quarters as Apple launches a flagship phone capable of running on new highspeed 5G networks around the globe. While we trimmed our position during the quarter due to our long-held maximum portfolio position size of 10%, Apple continues to be one of our largest holdings.”

Last week, we published an article revealing that Distillate Capital exited its position in Apple Inc. (NASDAQ:AAPL) stock.

In Q2 2020, the number of bullish hedge fund positions on Apple Inc. (NASDAQ:AAPL) stock increased by about 4% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Apple’s growth potential. Our calculations showed that Apple Inc. (NASDAQ:AAPL) is ranked #11 among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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