Why Apple is NOT a Top Ten Holding of 93% of Hedge Funds

To infinity and beyond Buzz Lightyear   A recent report by Goldman Sachs describes Apple (AAPL) as a “Very Important Position” (top ten holding) for 47 hedge funds. Overlooked is that fact that it’s not a significant position for 93% of the hedge funds in the survey and represents only a 1-2% overall allocation, less than its weighting in the S&P 500. Further, three years ago it was in fact a top ten holding of 109 hedge funds, so more than half decided to cut back. What happened? Perhaps the real question is, “how cheap is AAPL today?” Carl Icahn, …

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Smart Money Insights: Weekly Brief Feb 22

Is the US heading into recession? Does the market decline in January and early February signal that the US is heading into recession? Most hedge funds think not. In the face of surprisingly large drawdowns, most hedge funds appear to be sticking to their guns or even adding to positions in US equities. You don’t see this when there’s widespread concern about the overall economy. Bottoms-up fundamental managers don’t appear to be overly concerned about the US economy, in part because they have concentrated their investments in sectors that have been doing reasonably well (e.g. consumer spending, technology). A few …

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