The Complete Q2 Hedge Fund Holdings Update (In Which We Discover That 181 HFs Hold Apple Stock)

Tyler Durden's picture

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septicshock's picture

Hmm, wonder what they will have to sell in order to cover their margin calls as the market plummets.

equity_momo's picture

Im sure thats a rhetorical question but i find GLD interesting - once that gets beaten over the head in the next panic deleveraging phase its there to be scooped up. Apple on the other hand i would leave in the doldrums. That is a company that has peaked.

bugs_'s picture

single point of failure

New_Meat's picture

yep-single point vulnerability

JJP's picture

‘Car Maintenance Bitchez’

Dismal Scientist's picture

612 HF's with 585bn in equity assets (US only in this sample). Sure, there's no mention of real exposure via derivatives. Nevertheless, thats a trivial amount of cash equity investment per fund = a trivial amount of potential commission dollars for the equity sales/research divisions of the banks, especially as turnover rates have been dropping all year. This segment is a loss leader at best now, unless its subsidised by a pick up in M&A that many seem to expect (including me). Q4 job cuts seem inevitable now.

Magua's picture

yup, beta on beta off, and buy what you hate has driven hedge funds out of trying to short "crap". I know, because shorting crap closed our fund. I could swear that Goldman has a fund tucked deep in their prop/desk that seeks to bust shorts.

It has reduced hedge funds, like the one I was at, to shorting etfs. Not a lot of value add there.

So now the new frontier is to buy Apple and short the SPY - wow - wish I had thought of that as a way to get 2 and 20.

soliton's picture

 Looks like a good setup to get another 2008-early 2009 bonfire. Who needs materials if the recession is still in full swing, and China property bubble is about to bust?

doolittlegeorge's picture

the government that's who.  YOUR government.

Bartanist's picture

Interesting how the hedge funds hate dividends.

soliton's picture

Dividend stocks land themselves to the tried and true valuation models, so they cannot run up to sky heights. Something like AAPL, on the other hand, is more like a dream, and is worth it at any price!

Kreditanstalt's picture

Dividend stocks are no longer really stocks ~ they're bonds. 

They show little volatility: why are banks and CRE immune to crashes, no matter how poor the macro environment?  Have a look at the new 52-week highs from Friday...chock-full of dividend-, interest- and yield-bearing financial paper assets. 

Exactly like bonds.

And what happens to bondholders when the currency declines?  Or when coupons are cut?  Dividend cuts will tell...wait for them.


Spitzer's picture

in a currency crisis, dividend stocks will do good in nominal terms, bonds will be history.

the grateful unemployed's picture

You just proved why Apple will never miss earnings. How many people showed up in Atlanta for Section 8 housing aid?? Take the rent money and spend it on Iphones? What's not to love. Maybe they're developing homeless apps right now, punch a button to find the nearest soup kitchen, which homeless shelters are full, and which are open? Where the last mugging and stabbing took place. Priceless

doolittlegeorge's picture

who pulled the 44 and shot his infant son in front of the State Police.  Nothing but net, baby.

Kreditanstalt's picture

Are the only level-headed ones overseas?  WTF is "AutoNation"?

I looked it up.  Here is a company which is 46% owned by HF.  Apparently 47% of the company is also owned by "ESL Investments"

But what does it DO?  What does it produce?

It produces NOTHING.  It's a massive car dealership, simply re-sells cars made by others...revenue was somehow listed as "approx. US$18bn" on Wikipedia...and it doesn't even pay a dividend.

Why would anyone invest in a CAR RETAILER going into what will likely be decades of slow-to-no growth (or in fact recession), selling something that is an increasingly unaffordable luxury?  Don't Americans have enough cars already?

The whole U.S. economy has been said to be dependent solely on spending, on credit, and on things which are frills and unneeded luxuries (made in China or NOT)'s obviously true.

And there are other HUGE outfits based, shakily IMO, on selling more cars: CarMax, Inc. (KMX) has a market cap of over $4bn.

How very AMERICAN...all fluff and no substance.


You forgot about our B52s, you cheese eating surrender monkey.

Young's picture

Probably a shitty Risk Arb trade too many HFs are involved in...

Bose Einstein OracIe's picture

Ug posted on wrong topic

Keith Piccirillo's picture

Arnott had a piece entitled "Too Big To Succeed" which could help explain how small and mid caps have had the edge over large caps.


In a falling correlation environment maybe they should have had more XLU then and XLV now.


Young's picture

That explains what's holding up that walking time bomb also known as apple - and the whole market with it.

Herry12's picture

Thanks for such a great post and the review, I am totally impressed! Keep stuff like this coming!...
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