Appaloosa unloads all Apple shares as other hedge funds trim position

Posted:
in AAPL Investors
Another big investment fund is breaking up with Apple. According to a U.S. Securities and Exchange Commission filing, David Tepper's Appaloosa Management has reduced its position in the iPhone maker to zero, mirroring a recent move by high-profile investor Carl Icahn.




Appaloosa dumped more than 1.26 million shares of Apple common stock worth about $133 million at the end of 2015, SEC documents show. BusinessInsider spotted the selloff earlier today.

Tepper isn't the only investment manager who shored up assets on the heels of Apple's first year-over-year revenue decline in more than a decade. Bridgewater Associates, which last cycle raised its stake in Apple, sold off 221,452 shares to end March with 106,000 shares worth $11.6 million.

Two weeks ago, Icahn announced that he no longer owns Apple shares, citing Chinese market risks. In particular, the investor is concerned that the country's economy and strict government policies might make things difficult for Apple, which is looking at China as a major growth opportunity.

Despite Wall Street doom and gloom, massive funds like BlackRock, whose co-founder and current COO Susan Wagner serves on Apple's board, and Vanguard upped their holdings in the company over the course of the most recent quarter. Hedge fund manager David Einhorn also voiced support, saying he sees 'tremendous value' in Apple stock. Einhorn's Greenlight Capital still holds a position in Apple, but the exact amount is unknown as the fund has yet to file a holdings report for the March quarter.

Last month, Apple posted its first quarterly revenue decline in 13 years on disappointing iPhone sales. Of note, revenue generated by Greater China slumped to roughly $12.5 billion in the three-month period ending in March, down 26 percent year-over-year.
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Comments

  • Reply 1 of 49
    bobschlobbobschlob Posts: 1,074member
    Que the sog bashers?

    "Where's sog??"  "Where's sog??"  
    anantksundaramlatifbp
  • Reply 2 of 49
    anantksundaramanantksundaram Posts: 19,047member
    What a ridiculous, not to mention badly late, overreaction. From supposedly smart people whom the public thinks know better. 

    There hasn't been, and probably won't be, a buy-and-hold opportunity like this in a while. If my portfolio weren't already overweighted with AAPL, I'd be loading up. Giving me a 2.5% dividend yield while holding (80 basis points better than the yield on a 10-year US government bond). 
    latifbpSpamSandwichronnjbdragonpotatoleeksoupbadmonk
  • Reply 3 of 49
    rob53rob53 Posts: 2,007member
    Just a bunch of rats jumping ship. 
    baconstangpatchythepirateronnjbdragon
  • Reply 4 of 49
    stevehsteveh Posts: 480member
    Great strategy.

    Sell low...
    latifbpbaconstangpatchythepiratejbdragon
  • Reply 5 of 49
    mejsricmejsric Posts: 133member
    steveh said:
    Great strategy.

    Sell low...
    He sold it at end of 2015.
    kermit4krazycnocbui#BlameMe
  • Reply 6 of 49
    Hedge funds always dump losers, so I suppose it's not that unusual for them to be dumping Apple. Instead, they'll be buying Amazon, Tesla, Alphabet, Facebook, Microsoft, etc. It's not easy for a CEO to ruin a company unless he's trying to do it deliberately. Tim Cook has really soured most of the big investors. Think of how many shares Apple can buy back for $75 a share. It will be interesting to see how many since that's where Apple appears to be headed. I suppose it was inevitable Apple becoming a second-rate investment after joining the Dow. The Dow curse must be in full effect at this point. No investors will be buying Apple unless they surely want to lose their money. I still can't understand how Apple's management missed the signs of a fully saturated smartphone market. It seemed so obvious to practically everyone else.
    kermit4krazypaul turner
  • Reply 7 of 49
    buckalecbuckalec Posts: 192member
    Hedge funds always dump losers, so I suppose it's not that unusual for them to be dumping Apple. Instead, they'll be buying Amazon, Tesla, Alphabet, Facebook, Microsoft, etc. It's not easy for a CEO to ruin a company unless he's trying to do it deliberately. Tim Cook has really soured most of the big investors. Think of how many shares Apple can buy back for $75 a share. It will be interesting to see how many since that's where Apple appears to be headed. I suppose it was inevitable Apple becoming a second-rate investment after joining the Dow. The Dow curse must be in full effect at this point. No investors will be buying Apple unless they surely want to lose their money. I still can't understand how Apple's management missed the signs of a fully saturated smartphone market. It seemed so obvious to practically everyone else.
    Tragic trolling! Saving this statement to be displayed in 12 months - hedge funds hedge, 'vision is on the other side of the hedge, whether trimmed are not" Confucius 572 bc 
    latifbpchiabaconstangmwhitebrucemcronnnolamacguynetmagesteveh
  • Reply 8 of 49
    robin huberrobin huber Posts: 3,246member
    Buying with my accumulated dividends. It's been a while since Apple has been anything even close to a bargain. Big investors are only looking for a quick buck. We long investors are in it for the decade, not the year. 
    baconstangpaul turnerlatifbpSpamSandwichronnjbdragon
  • Reply 9 of 49
    wonkothesanewonkothesane Posts: 1,344member
    Nothing to see here. It has been made clear before that 

    a) stock value is reflecting not so much company health but mainly growth potential. And currently, Apple makes most profit from selling iPhones which is reaching a steady state. On the past, adding regions and carriers has been a big growth driver. This is close to gone. again, nothing to worry from a company wealth perspective as it will have a steady rate of switchers and upgraders. 

    b) some funds are into the short run, not the long haul. And Apple has a strong growth potential IMO in two areas: services and new hardware categories, both of which require some time to mature to a point where they can replace previous growth by iPhone hardware sales. 

    The he only thing I found concerning recently is Tim Cook's somewhat inconsistent narrative in earning calls. Listen eg torte last episode of Gruber's The Talkshow for details. But again, not at all concerning company health or long term growth potential. 
    paul turnercornchipkevin kee
  • Reply 10 of 49
    mdriftmeyermdriftmeyer Posts: 7,229member
    Good. I hope all Hedge Funds flush their investments. Then we can get back to focus on evolving the company.
    latifbpronnpscooter63palomine
  • Reply 11 of 49
    paul turnerpaul turner Posts: 206member
    Hedge funds always dump losers, so I suppose it's not that unusual for them to be dumping Apple. Instead, they'll be buying Amazon, Tesla, Alphabet, Facebook, Microsoft, etc. It's not easy for a CEO to ruin a company unless he's trying to do it deliberately. Tim Cook has really soured most of the big investors. Think of how many shares Apple can buy back for $75 a share. It will be interesting to see how many since that's where Apple appears to be headed. I suppose it was inevitable Apple becoming a second-rate investment after joining the Dow. The Dow curse must be in full effect at this point. No investors will be buying Apple unless they surely want to lose their money. I still can't understand how Apple's management missed the signs of a fully saturated smartphone market. It seemed so obvious to practically everyone else.
    I dumped the remaining shares I owned at $107, and have been making good premium selling naked calls all the way down! I love Apple I have made so much money on this recent collapse. Its going to be a long summer for Apple and I'm guessing the stock will go to 80. In any event, I'll follow the key traders and just follow the trend which ever way it goes. It's generally easier to make money by following that momentum. I won't sell any puts until the stock has consolidated and then sell the volatility as it bounces up. I would think it might rally towards the IP7 release and by selling ITM PUTS sell even more of the vol. Even if they get PUT to me , I'll simply sell covered calls on those and make even more profit. I don't give damn about predicting iPhone sales or arguing with people on here about , what will or will not be the new design, what matters to me is that the stock moves   and that there is  a good amount of volatility to make some quick profits as it rolls up and down between support and resistance. 

    If that were to  happen they will make money from the whiners who waited too long to sell and capitulate at the bottom. The smart guys are the ones who sell when pivot points are breached because their experience tells them there is more risk than reward at those points the whiners probably know very little about how to trade like these "smart" guys and vent their frustration in the wrong direction. 


    Such is the MO of losers/victims - all they do is whine about everything as they get wiped out. 
    edited May 2016 kermit4krazyjonlSpamSandwichcornchip
  • Reply 12 of 49
    paul turnerpaul turner Posts: 206member

    rob53 said:
    Just a bunch of rats jumping ship. 
    Making money is about having no emotion in what one is trading. There is no such thing as loyalty if you want to make money on stocks in the short to medium term, otherwise you will get slaughtered. 
    jonljbdragon
  • Reply 13 of 49
    paul turnerpaul turner Posts: 206member
    What a ridiculous, not to mention badly late, overreaction. From supposedly smart people whom the public thinks know better. 

    There hasn't been, and probably won't be, a buy-and-hold opportunity like this in a while. If my portfolio weren't already overweighted with AAPL, I'd be loading up. Giving me a 2.5% dividend yield while holding (80 basis points better than the yield on a 10-year US government bond). 
    You don't know what they bought them at. Sometimes its better to cut one's losses and move on to stock that have better potential. So "they" may be more "smart" than you realize. Your statement tells me more about your judgmental and rather typically fashionable "bash fund managers" calling them "rats"  attitude .


    So if the stock goes to 80 and that fund manager buys in again there and it trades back up to 90 where they sell and make a 10% profit, you are the one who will look stupid, won't you?

     Until we see what happens over the summer no one really knows . Its way to early to make judgments.
    edited May 2016 jonlSpamSandwich
  • Reply 14 of 49
    anantksundaramanantksundaram Posts: 19,047member
    Hedge funds always dump losers, so I suppose it's not that unusual for them to be dumping Apple. Instead, they'll be buying Amazon, Tesla, Alphabet, Facebook, Microsoft, etc. It's not easy for a CEO to ruin a company unless he's trying to do it deliberately. Tim Cook has really soured most of the big investors. Think of how many shares Apple can buy back for $75 a share. It will be interesting to see how many since that's where Apple appears to be headed. I suppose it was inevitable Apple becoming a second-rate investment after joining the Dow. The Dow curse must be in full effect at this point. No investors will be buying Apple unless they surely want to lose their money. I still can't understand how Apple's management missed the signs of a fully saturated smartphone market. It seemed so obvious to practically everyone else.
    I dumped the remaining shares I owned at $107, and have been making good premium selling naked calls all the way down! I love Apple I have made so much money on this recent collapse. Its going to be a long summer for Apple and I'm guessing the stock will go to 80. In any event, I'll follow the key traders and just follow the trend which ever way it goes. It's generally easier to make money by following that momentum. I won't sell any puts until the stock has consolidated and then sell the volatility as it bounces up. I would think it might rally towards the IP7 release and by selling ITM PUTS sell even more of the vol. Even if they get PUT to me , I'll simply sell covered calls on those and make even more profit. I don't give damn about predicting iPhone sales or arguing with people on here about , what will or will not be the new design, what matters to me is that the stock moves   and that there is  a good amount of volatility to make some quick profits as it rolls up and down between support and resistance.
    Thanks for that vacuous finance lesson. 

    /rolleyes
    foljsronnai46netmagecornchip
  • Reply 15 of 49
    anantksundaramanantksundaram Posts: 19,047member
    paul turner said:

    Your statement tells me more about your judgmental and rather typically fashionable "bash fund managers" calling them "rats"  attitude .
    Yep, sure. Check out his genius investment in Terraform Power. 

    And, no one called anyone 'rats.' Don't make up stupid, random stuff. 
    edited May 2016 SpamSandwich
  • Reply 16 of 49
    Rayz2016Rayz2016 Posts: 4,556member
     I still can't understand how Apple's management missed the signs of a fully saturated smartphone market. It seemed so obvious to practically everyone else.

    They didn't miss it though, did they?

    They predicted the slowdown in the last quarter statement and they were pretty much bang on the money.  Was I concerned about the slowdown? Nope, because for anyone watching, this is how Apple has run its business for the past fifteen years: hit a market, bleed it dry, move on to the next market.  They are the Independence Day aliens of the tech world.

    We'll see a few peaks and dips in iPhone sales over the coming years, but Apple is now preparing to move on. 
    edited May 2016 latifbpSpamSandwichbobschlobronnpscooter63palominecornchip
  • Reply 17 of 49
    paul turnerpaul turner Posts: 206member
    paul turner said:

    Your statement tells me more about your judgmental and rather typically fashionable "bash fund managers" calling them "rats"  attitude .
    Yep, sure. Check out his genius investment in Terraform Power. 

    And, no one called anyone 'rats.' Don't make up stupid, random stuff. 
    Here

    rob53 said:
    Just a bunch of rats jumping ship. 


    No one gets every trade correct, that's impossible. It's only amateurs who think they can get it right all the time. All one can really do is recognize the risk/reward, set stops, minimize the downside and move to the next trade. The difference between the whiners (amateurs) is they look at the upside potential FIRST. This is called greed. The Professional looks at the downside FIRST! and keep emotion out of it. Currently aapl's  downside is a lot more than the upside. 


    edited May 2016 jonlnetmage
  • Reply 18 of 49
    Rayz2016Rayz2016 Posts: 4,556member
    Yep, sure. Check out his genius investment in Terraform Power. 

    And, no one called anyone 'rats.' Don't make up stupid, random stuff. 
    Here

    rob53 said:
    Just a bunch of rats jumping ship. 


    No one gets every trade correct, that's impossible. It's only amateurs who think they can get it right all the time. All one can really do is recognize the risk/reward, set stops, minimize the downside and move to the next trade. The difference between the whiners (amateurs) is they look at the upside potential FIRST. This is called greed. The Professional looks at the downside FIRST! and keep emotion out of it. Currently aapl's  downside is a lot more than the upside. 



    Spot on.

    Amateurs get emotionally involved in their investments, which makes it casino gambling, not investing.
    edited May 2016 ai46cornchip
  • Reply 19 of 49
    Hedge funds always dump losers, so I suppose it's not that unusual for them to be dumping Apple. Instead, they'll be buying Amazon, Tesla, Alphabet, Facebook, Microsoft, etc. It's not easy for a CEO to ruin a company unless he's trying to do it deliberately. Tim Cook has really soured most of the big investors. Think of how many shares Apple can buy back for $75 a share. It will be interesting to see how many since that's where Apple appears to be headed. I suppose it was inevitable Apple becoming a second-rate investment after joining the Dow. The Dow curse must be in full effect at this point. No investors will be buying Apple unless they surely want to lose their money. I still can't understand how Apple's management missed the signs of a fully saturated smartphone market. It seemed so obvious to practically everyone else.
    Year over year yes iPhone had sold less but 2015 was a aberration because of the new large form factor. Analyst don't want to tell you that shipments are actually up if you use a 2 or 3 year comparison. You could have predicted march Qtr iPhone shipments right in-line with aapl's forecast if not on the low end.
    ronnai46netmage
  • Reply 20 of 49

    Rayz2016 said:
     I still can't understand how Apple's management missed the signs of a fully saturated smartphone market. It seemed so obvious to practically everyone else.

    They didn't miss it though, did they?

    They predicted the slowdown in the last quarter statement and they were pretty much bang on the money.  Was I concerned about the slowdown? Nope, because for anyone watching, this is how Apple has run its business for the past fifteen years: hit a market, bleed it dry, move on to the next market.  They are the Independence Day aliens of the tech world.

    We'll see a few peaks and dips in iPhone sales over the coming years, but Apple is now preparing to move on. 
    No   predicted YOY slowdown because of the aberration that the 2015 iPhone created (larger form). Over a 2 or 3 yr comparison iPhone shipments increased. Not saying a slowdown may not occur in  future Qtr's.
    netmage
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