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Presenting The World's Biggest Hedge Fund You Have Never Heard Of

Tyler Durden's picture


The world's largest hedge fund is not located in the top floor of some shiny, floor-to-ceiling glass clad skyscraper in New York, London, Hong Kong or Shanghai. It isn't in some sprawling mansion in Greenwich or Stamford which houses a state of the art trading desk behind a crocodile-filled moat. Instead it can be found in tiny, nondescript office in Suite 225 located on 730 Sandhill Road in Reno, Nevada.

"That's not possible" one may say - the world's largest hedge fund is Ray Dalio's Bridgewater, which at last check had about $100 billion in AUM (and which has so far had a less than stellar performance in 2012, underperforming the S&P by a substantial margin). Turns out it is: the fund which was at $117.2 billion as of June 30, and which has lately been growing at a pace of about $15 billion per quarter (which would put it at about $130 billion currently), is none other than Braeburn Capital, a Nevada-based asset management corporation.

Who is Braeburn?

Braeburn is a subsidiary of another far more famous company, which since 2006 has had one simple task: manage the cash of the parent company.

At Braeburn's inception, the cash pile was modest, yet absolutely massive in unlevered terms, at just over $10 billion. Fast forward 6 years, and the massive cash pile has now grown to be epically gargantuan. Of course, the parent company in question is none other than Apple, whose publicly reported cash horde at June 30, 2012 was a whopping $117,221,000,000. This is the AUM of Braeburn.

Any substantial follow up diligence on Braeburn will not reveal much if anything.

CapitalIQ has the following description of the firm: "Braeburn Capital Inc. is the asset management arm of Apple Inc. The firm invests in the public equity markets. Braeburn Capital Inc. was founded in 2006 and is based in Reno, Nevada." And that's it - there is no breakdown of which "public equity market" investments Braeburn is invested in, as is to be expected.

Bloomberg provides the following minimalist information:

Some more useful information cn be found in the Nevada Annual Report of tax-filing entities:

  • Filing Status: Active    
  • Date Filed: 10/03/2005
  • Type: Domestic Corporation    
  • File Number: E0667452005-7

It also lists the firm's principals:

Gary Wipfler
730 Sandhill Road
Suite 225
Reno, NV 89521

Gene Levoff
730 Sandhill Road
Suite 225
Reno, NV 89521

Michael Shapiro
730 Sandhill Road
Suite 225
Reno, NV 89521

The LinkedIn profile of Braeburn CIO Steve Johnson is also rather bland:

As is that of Braeburn Portfolio Manager Ted Mulvaney, who before taking over capital allocation of tens of billions worked at a fund named for a Douglas Adams planet.

Oddly enough, the only actual personnel link between Braeburn and Apple can be found in the profile of principal Gary Wipfler who just happens to be the official Treasurer, and thus as expected, the person responsible for the mega cash stash of the behemoth tech company.

For some other clues on Braeburn one has to go to the NYT, and a certain article discussing AAPL's ability to legally and quite successfully bypass American corporate tax laws.

In 2006, as Apple’s bank accounts and stock price were rising, company executives came here to Reno and established a subsidiary named Braeburn Capital to manage and invest the company’s cash. Braeburn is a variety of apple that is simultaneously sweet and tart.


Today, Braeburn’s offices are down a narrow hallway inside a bland building that sits across from an abandoned restaurant. Inside, there are posters of candy-colored iPods and a large Apple insignia, as well as a handful of desks and computer terminals.


When someone in the United States buys an iPhone, iPad or other Apple product, a portion of the profits from that sale is often deposited into accounts controlled by Braeburn, and then invested in stocks, bonds or other financial instruments, say company executives. Then, when those investments turn a profit, some of it is shielded from tax authorities in California by virtue of Braeburn’s Nevada address.


Since founding Braeburn, Apple has earned more than $2.5 billion in interest and dividend income on its cash reserves and investments around the globe.

Naturally, Apple is less than eager to discuss the role of its Nevada asset manager:

Apple declined to comment on its Nevada operations. Privately, some executives said it was unfair to criticize the company for reducing its tax bill when thousands of other companies acted similarly. If Apple volunteered to pay more in taxes, it would put itself at a competitive disadvantage, they argued, and do a disservice to its shareholders.

There is much more in the NYT article, but in short, while Apple for now uses Braeburn primarily in its capacity to find legal tax loophole all around the world and avoid paying taxes, there is no denying that with a cash balance that in a two years may be well over $200 billion, applying even a modest amount of leverage would make AAPL the best capitalized bank, mutual fund or asset manager in the world.

What's more, Braeburn has no reporting obligations: there is no Investment Advisor Public Disclosure (IAPD) entry on Braeburn for the logical reason that it is not an investment advisor: it merely manages an ungodly amount of cash for AAPL's millions of shareholders. There is also no SEC filing 13-F filing on Braeburn's holdings. As such, not confied by the limitations of being a "long-only", it is in its full right to hold any assets it feels like, up to and including CDS on housing, puts on Samsung, or Constant Maturity Swaps that pay if the 10 Year collapses. It just doesn't have to report any of them.

Nobody knows: and that's the beauty of Braeburn. It is the world's largest hedge fund that is not really a hedge fund, nobody has heard of, and nobody knows just what assets it holds.

Which is precisely what Apple wants. Incidentally, what Apple probably wants more is to keep the status quo as is. However, with the topic of finding effective tax loopholes which are perfectly legal, yet which apparently are unfair, serving as the basis of the entire presidential race to date, what Apple can be absolutely certain of is that once the farce culminating on November 6 is over, the government's eye will finally turn to minimizing "externalities" among such companies which have been able to pass through corporate tax savings to end consumers by abiding within the legal system that countless other muppet congressmen, senators and presidents have developed over the ages.

Because while AAPL may have built the iPhone, very soon it will be only fair that it share its profits acquired over the years, and thus its cash balance, which at last check was double that of the US Treasury, with the general public.

At that point Braeburn will almost certainly be a household name.


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Mon, 10/01/2012 - 00:32 | 2844166 wandstrasse
wandstrasse's picture

recently on a family event I met the sons of super-rich parents, in their 20s, smart, good looking, etc. Archetypal iPhone owners. They had <$100 Samsung phones... That gave me a strong confirmation for my thought that Apple's sexy-style-trendsetter phase is long over.

Sun, 09/30/2012 - 16:01 | 2843391 RobD
RobD's picture

Hey fellow nevadan, I know of three other guys in my building that are zerohedge junkys and just met a fellow prepper at my daughters soccer game this weekend.


PS 49ers just spanked the Jets....Tebow...Tebow...Tebow...can you hear it lol. Time to go for a ride on my harley now, to nice a day to stay in anymore.

Sun, 09/30/2012 - 16:21 | 2843415 Buckaroo Banzai
Buckaroo Banzai's picture

I have to say, this Jets implosion (which anybody could have seen coming the moment they signed Tebow) is shaping up better than I could have imagined.

Sun, 09/30/2012 - 16:51 | 2843472 slaughterer
slaughterer's picture

Fuck, I have a satellite office right next door.  I NEVER knew.  /sarc

Sun, 09/30/2012 - 15:45 | 2843370 ebworthen
ebworthen's picture

I wonder what Pfizer is doing with their stolen Kelo property in the City of New London.

Or was that one of the other big-pharma bullies?

Sun, 09/30/2012 - 16:44 | 2843458 optimator
optimator's picture

Ha Ha Ha, turns out Pfizer is not going to use that property, and slowly leaving New London because of high taxes.  I think the city still owns that now non revenue producing property they took by emminent domain.  I feel sorry for all the families that were run off, some had been there for generations.

Sun, 09/30/2012 - 15:11 | 2843318 radicall
radicall's picture

So can the Hedge fund invest in AAPL based on insider info or just buy NQ futures/QQQ?

Sun, 09/30/2012 - 15:15 | 2843320 Insideher Trading
Insideher Trading's picture

2.5 billion is around 2% of 117 billion.

2% return...not impressed

Sun, 09/30/2012 - 15:20 | 2843328 Skateboarder
Skateboarder's picture

30yr bonds are a better investment? LOL!!!

Sun, 09/30/2012 - 15:15 | 2843322 richard in norway
richard in norway's picture

now we know whos pumping up apple stock

Sun, 09/30/2012 - 17:05 | 2843493 NewThor
NewThor's picture

Who isn't pumping/pimping Apple stock?


...other than Reggie.

Sun, 09/30/2012 - 15:19 | 2843325 Yen Cross
Yen Cross's picture

Speaking of "Fairness Doctrines, the IMFs' Christine Lagarde is "bloviating", on C-SPAN as we post.

Sun, 09/30/2012 - 16:19 | 2843414 tenpanhandle
tenpanhandle's picture

"bloviating"... nice word.

Sun, 09/30/2012 - 15:23 | 2843336 virgilcaine
virgilcaine's picture

Hermes bag as big as the Bernank in tow?


Sun, 09/30/2012 - 15:24 | 2843338 ptoemmes
ptoemmes's picture

Corporations are people too. Yup, just regular folk like you and me.

Sun, 09/30/2012 - 15:28 | 2843343 Skateboarder
Skateboarder's picture

And when they're horny, they just fuck the people...

Sun, 09/30/2012 - 15:49 | 2843377 djsmps
djsmps's picture

So is Soylent Green.

Sun, 09/30/2012 - 15:24 | 2843339 q99x2
q99x2's picture

Tell em to git you duh ObamaiPhone. Theys fixin to tax Apple an git me one. Duh iPhone then ok by me. Anyways dey do it I'm gettin me my ObamaiPhone. Once Obama git back in.

Sun, 09/30/2012 - 16:21 | 2843418 Buckaroo Banzai
Buckaroo Banzai's picture


Sun, 09/30/2012 - 16:37 | 2843450 sessinpo
sessinpo's picture

Only to those that don't realize it was a Reagan phone, expanded through3 future presidents. This is why you don't start social programs. They take a life of their own and become another bloated program under future presidents. Socialism infects both parties.

Mon, 10/01/2012 - 11:36 | 2845222 phalfa5
phalfa5's picture

he's a racialist

Sun, 09/30/2012 - 15:31 | 2843349 Landrew
Landrew's picture

Apple is a Chinese company receiveing protection from the U.S. government military and patent office! They should be taxed as a Chinese company!

Sun, 09/30/2012 - 15:37 | 2843350 Yen Cross
Yen Cross's picture

 Is that "Braeburn Capital" marquee, mounted on tungsten wall brackets?

   RENO. " The biggest little city in the world".

Sun, 09/30/2012 - 16:21 | 2843416 tenpanhandle
tenpanhandle's picture

what do you expect?  They're not named "Golden Delicious Capital".

Sun, 09/30/2012 - 16:26 | 2843425 Yen Cross
Yen Cross's picture

 Are you in the "Agra" business , or just craving some fruit? Good comment though.

Sun, 09/30/2012 - 17:53 | 2843548 SilverFish
SilverFish's picture


Sun, 09/30/2012 - 15:36 | 2843356 sampo
sampo's picture

Well, they could always go all-in silver, couldn't they?

Sun, 09/30/2012 - 15:46 | 2843360 Conman
Conman's picture

Interesting that they are able to buy equities. I'd figure they would stay out of that all together. I guess things like insider trading only apply to us little folk.

Sun, 09/30/2012 - 15:41 | 2843364 ebworthen
ebworthen's picture

Will $177 Billion be enough to bail out CALPERS?

Or...give the Chinese slave labor a raise?

AAPL:  $666 per share at quarter end.

p.s. - Steve Jobs has passed.

Sun, 09/30/2012 - 15:42 | 2843367 Urban Redneck
Urban Redneck's picture

Why doesn't Apple just buy Tuvalu and reorg as a SWF, then it can add sovereign immunity to its tax planning toolkit and Braeburn can join the real big boys of fund management...

Sun, 09/30/2012 - 15:47 | 2843372 Yen Cross
Yen Cross's picture

 Makes ya wonder how many "accredited only banks", AAPL has started abroad. Repatriate over 50% of your earnings in USSA?

  Homey Don't Play That.

Sun, 09/30/2012 - 15:56 | 2843389 insidious
insidious's picture

My take on Apple's success and huge stash is to reflect on the US debt and deficit. Apple is probably one of,  if not the most, successful and richest corporation in the history of the world. As a result they may have $130 billion of excess cash and investments. If the government took every penny of Apple's stash it would only cover the US deficit for a month and a half or so. The US deficit, let alone the debt, is ridiculous and only half of the people in the US even contribute via income tax. If that's not f'd up - I don't know what is. How this works out well for the US in the long run - I have no idea.

Sun, 09/30/2012 - 16:05 | 2843398 ebworthen
ebworthen's picture

Fucked Up!  You can say it.

Sun, 09/30/2012 - 16:10 | 2843402 hooligan2009
hooligan2009's picture

I am pretty sure that, even at the low tax rates secured by leading companies in america of c. 10-15%, that companies such as JnJ, IBM, and XOM would also have cash hoards of the size of AAPL were they also able to pay zero in tax.

Sun, 09/30/2012 - 21:31 | 2843894 nickt1y
nickt1y's picture

How about GE? As in General Electric Paid no taxes last year. Crony Capitalism at it's best.

Sun, 09/30/2012 - 16:11 | 2843404 Landrew
Landrew's picture

Maybe if Apple built ONE of their products in the U.S. instead of CHINA people would have jobs to pay income tax you fucking moron!

Sun, 09/30/2012 - 16:42 | 2843454 sessinpo
sessinpo's picture

Time for emotional personal attackes. That is the liberal way. Avoid debate.

Sun, 09/30/2012 - 18:05 | 2843569 NewThor
NewThor's picture

Do you need a tissue and some bandaids?

Maybe you aren't ready for fight club.


Wed, 10/03/2012 - 09:21 | 2851445 sessinpo
sessinpo's picture

Oh please,


You've been dispensed so many times on ZH by others you dont' even deserve attention any more little boy. Just like I did earlier. I don't even support Apple but there is no need to start cussing, calling names and making comments that have no substance such as you just did. What's the matter, don't have have anything of substance to add? And what's the matter, is it to much for you that I call you liberals out  when you resort to such low tactics? Looks like you need the band aid.

You could use a good ass kicking but so many ZHs have already shoved their foot up your ass, there is no room for mine.

Sun, 09/30/2012 - 16:43 | 2843456 Umh
Umh's picture

Personally I don't like Apple, however most of their employees are in the US.


Sun, 09/30/2012 - 17:12 | 2843498 Landrew
Landrew's picture

Thanks for making my point. They have no U.S. workers! FoxConn is Chinese! Wait until FoxConn opens the stores with THEIR version of everything Apple and see Apple come to WE the people for protection from the big bad Chinese! 

Sun, 09/30/2012 - 22:39 | 2843994 laosuwan
laosuwan's picture

maybe they feel their assets are safer in china than the us?

Mon, 10/01/2012 - 00:21 | 2844150 Seer
Seer's picture

"only half of the people in the US even contribute via income tax."

Maybe we should look to be more like the communists?

If only America looked at the rest of the world.

Consider India. If you’re a taxpayer, you’re part of the elite few. In fact, only 2.8 percent of the population officially makes more than the $3,700 threshold for paying taxes (per capita income is only a third of that amount.) The rest – the 97.2 percent – don’t file an income tax return.

Or consider communist China. How many of its 1.34 billion citizens pay income taxes? According to the state-run Xinhua newspaper, only 24 million made the cut this year. By my math, that’s 1.72 percent of the population; 98.28 percent of Chinese don’t pay taxes!

Sigh, but it makes for good prop material to keep the sheep stirred up...

Sun, 09/30/2012 - 16:03 | 2843395 css1971
css1971's picture

Lets put it this way. You invest in Apple so that you're invested in other stocks, bonds, commodities?

Why don't Apple management know what to do with the money? There seems to be some vision missing. It's like Microsoft, they never had any vision either. Both companies simply follow others.

Sun, 09/30/2012 - 16:12 | 2843405 Yen Cross
Yen Cross's picture

Microsoft set themselves back 10 years when they bought MSNBS, and went on a global socialist crusade! Bill Gates has a heart of mush!

 Larry Ellison of Oracle, on the other hand, is silent and violent!

Sun, 09/30/2012 - 17:09 | 2843496 NewThor
NewThor's picture

I think the word "socialism" is the new "bromide".


Sun, 09/30/2012 - 16:14 | 2843408 css1971
css1971's picture

Or put another way. Apple actually don't have 117 billion in cash.

Sun, 09/30/2012 - 16:18 | 2843413 Yen Cross
Yen Cross's picture

85-105b who knows for sure. Fractional reserve banking makes them a small " Banana Republic".

Mon, 10/01/2012 - 00:27 | 2844158 Seer
Seer's picture

"There seems to be some vision missing."

Look around you, there you will see all the folks that corporations are supposed to figure out what to make.

The REASON it appears as there is no vision is because humanity today has NONE!  Further, all the "visions" that were supposed to be grand ones will eventually fail (just like flying cars and shit); why? because none of it was/is sustainable!

People suffer from too much romanticizing: it was always better in the past; it'll always be better in the future; and at any point in time? it's fucked! (be here now and learn to live in NOW and with the physical realities that always have been here [substitute "God," "Mother Earth/Nature" or whatever- we're going to be much less arrogant about it all])

Sun, 09/30/2012 - 16:09 | 2843401 Darkness
Darkness's picture

Looks like your editor missed two mistakes: " There is also now SEC filing 13-F filing on Braeburn's holdings." should be "There is also *no* SEC filing (repeated word) 13-F filing on Braeburn's holdings."


Sun, 09/30/2012 - 16:37 | 2843449 Tyler Durden
Tyler Durden's picture

Zero Hedge has no editors

Sun, 09/30/2012 - 17:36 | 2843522 NewThor
NewThor's picture

So the rumors about Putin ok-ing each article aren't true?

just kidding!

Don't ban me, bro!

(it is Fight Club after all.....)

Mon, 10/01/2012 - 08:18 | 2844429 falak pema
falak pema's picture

its strength and its weakness; but I'll vote for strength! 

Sun, 09/30/2012 - 16:15 | 2843410 I am Jobe
I am Jobe's picture

Blame the sheeples lining up to buy a fucking IPAD or IPHONE and can;t live without the shit


Mon, 10/01/2012 - 00:31 | 2844163 Seer
Seer's picture

Blame Edward Bernays.

The sheep are, after all, sheep.  Expecting different is a bit unproductive.  It would be like asking the sheep not to be eaten by the wolves.  But that's what we're good at, beating on the weak (never wanting to fall out of [possible] favor of the wolves).

Sun, 09/30/2012 - 16:21 | 2843417 doomandbloom
doomandbloom's picture


Sun, 09/30/2012 - 16:21 | 2843419 RobinHood73
RobinHood73's picture

Lest we forget...ENRON had a successful hedge fund as well. This may very well be the vehicle that has  thus far kept the AAPL cart from tipping. But such structures don't have reliable histories of perpetual success.  ENRON had its hedge fund that levered corp credit, and was able to manage funding thru stock guarantees and managed ENE price.  It worked until it didnt. And when it didnt , fair value was not 20% lower but  ZERO. Something doesnt sit right about this. 

Mon, 10/01/2012 - 00:35 | 2844168 Seer
Seer's picture

BIG = FAIL just as infinity X zero = zero.

It ALL will go to zero.  When your entire premise is to capture the hill and then there are no more hills to capture you're pretty much done for.  I suppose it then comes down to want a poster below says, that APPL will then get govt treatment (TBTF).  At such a point it'll be pretty obvious that the wheels have come off.

Sun, 09/30/2012 - 16:25 | 2843424 Miss Expectations
Sun, 09/30/2012 - 16:27 | 2843429 papaswamp
papaswamp's picture

Love the name!

Next, Mutsu Capital to open in Costa Rica.... less tax issue there.

Sun, 09/30/2012 - 16:30 | 2843433 virgilcaine
virgilcaine's picture

 AAPL will be ripe for some Gov. system oversight! Remember what happened to MSFT when they became too big. 

Sun, 09/30/2012 - 18:54 | 2843649 Bear
Bear's picture

It will only happen after the goberment stops buying iPhones for everyone in Cleveland, Newark, Camden and Detroit

Sun, 09/30/2012 - 16:43 | 2843457 I am Jobe
I am Jobe's picture

Reno is a shithole and inbred fucking place .

Sun, 09/30/2012 - 16:47 | 2843464 I am Jobe
I am Jobe's picture

How about adding ETN, Dell and other companies in the mix?

Sun, 09/30/2012 - 16:52 | 2843474 Yen Cross
Yen Cross's picture

" Behind a crocodile-filled moat." I guess  all those "swamp people" on Discovery Channel are on to something.?


Sun, 09/30/2012 - 16:55 | 2843479 slaughterer
slaughterer's picture

"China takes away AAPL manufacturing license!"

"Braeburn Capital suffers extreme losses!  Phil Falcone to take over."

"S&P 500 at 800 in headlong crash!"

Connect the dots.  

Sun, 09/30/2012 - 17:07 | 2843494 Yen Cross
Yen Cross's picture

 Me likes your thinking slaughterer!  Phil Falcone, "darkness squared", managing Director, John Corzine.  (contributing consultant; Bernard Madoff)

  Pipeline Disruption Specialist; Foxconn.

Sun, 09/30/2012 - 17:00 | 2843488 forrestdweller
forrestdweller's picture

they sell breaburn apples in my local supermarket. they taste quite good.

i can appreciate the humour, calling the company that handles the cash of the apple company after an apple species.

well done.

Sun, 09/30/2012 - 17:04 | 2843491 slaughterer
slaughterer's picture

I and 20 people from Goldman want to transfer to Braeburn.  Where do we send our CVs?

Sun, 09/30/2012 - 17:50 | 2843542 NewThor
NewThor's picture

CV = Corrupt Values?


Sun, 09/30/2012 - 17:59 | 2843556 Yen Cross
Yen Cross's picture


Sun, 09/30/2012 - 22:26 | 2843974 Cathartes Aura
Cathartes Aura's picture

Goldman Delicious.  plausible.

Mon, 10/01/2012 - 03:55 | 2844278 Dr Benway
Dr Benway's picture

Dude, the humor isn't that its the name of an apple variety. The pun is that braeburns are simultaneously tart and sweet. A hedge fund goes both long and short.

Sun, 09/30/2012 - 17:36 | 2843521 JR
JR's picture

Not only is the limitless advantages of the U.S. not good enough to make products for the world’s largest company, but the many advantages of California, the Golden State, is not good enough to take care of its cash and investment, moved to Reno out of the clutches of Sacramento.

Tough luck you other struggling California businesses. Buy yourself a few Congressmen and maybe you could be so lucky.

Sun, 09/30/2012 - 17:43 | 2843535 Yen Cross
Yen Cross's picture

Couldn't agree more J.R. Favorable Nevada taxation, and examination. I'll bet this little beauty was a hindsight accident, that some "rogue", general council discovered back in the 80s , and was subsequently resurected.

Sun, 09/30/2012 - 18:06 | 2843571 SgtSchultz
SgtSchultz's picture

I believe that Cisco runs their cash out of Reno and MSFT has their licensing operation in Reno as well.

Sun, 09/30/2012 - 18:15 | 2843586 Captain Benny
Captain Benny's picture

And you would be correct on that... right next to Intuit:

Sun, 09/30/2012 - 18:36 | 2843622 Yen Cross
Yen Cross's picture

Well done Gentlemen.

Sun, 09/30/2012 - 22:48 | 2844011 Big Swinging Richard
Big Swinging Richard's picture


Yes they do!  As does ORCL and IGT.  Reno, the biggest pot of corp. capital that no one has ever heard about.

Sun, 09/30/2012 - 18:09 | 2843574 James
James's picture

...........................or a Senator.

Looks like Harry Reid gots some 'splaining to do.

I hope this sticks

Sun, 09/30/2012 - 17:37 | 2843523 robertocarlos
robertocarlos's picture

Why is the Helicopter pad located between two parking lots?

Sun, 09/30/2012 - 17:38 | 2843527 sbenard
sbenard's picture

I thought the Bernanke Fed was the world's largest hedge fund! Ah, that's right! We have heard of that one!

Sun, 09/30/2012 - 18:02 | 2843533 elementary
elementary's picture

So APPL remains the darling of the tech world, while driving so many of its workers to suicide because of working conditions, but any other company would be called on the carpet for using child labor, harsh working conditions, overtime, blah, blah, blah.  Why is fucking APPL allowed to abuse and drive its employees to early deaths out of desperation, and yet all other companies are held accountable for the exact same conditions? That's right, coporatism at it's finest.  The government picks winners and prosecutes the losers. If you are going to make laws, make them equal across the board.  Proud to say I have never owned an APPL product.

Sun, 09/30/2012 - 18:50 | 2843641 Cosimo de Medici
Cosimo de Medici's picture

Since it's Sunday and you probably have free time, here's something you might pursue:

---gather all data on suicides at FoxConn and divide by the number of FoxConn employees

---compare the % to Chinese society on the whole

---compare that to Japanese society on the whole

---compare that to South Korean society on the whole

If your morality and sense of fairness are as powerful as implied in your post, and if you are truly proud to say you've never owned an APPL product, then you'll smash your computer, stereo, flat panel TV, car, mobile.....and you'll toss out all your clothes...even toss out the plastic bags you've tossed your clothes and other trash in...probably have to toss your toothbrush, too.....oh, and your gold and silver, because whether some of its atoms were mined last year in South Africa, or hundreds of years ago in South America, etc., somebody was abused or enslaved gathering it, so toss that, too

Sun, 09/30/2012 - 21:35 | 2843903 elementary
elementary's picture

It's not a sense or morality or fairness. It's about the govenrment choosing winners and losers. It's about the government allowing two sets of rules for business.  If you think that a Bill Gates, a Warren Buffet, et. al., made their money by hard work and the gift of extraordinary minds, you are quite naive. Not one person on this planet can achieve the wealth of a billionaire without the help of conspiring governments. The road map is presented and they gladly exchange their souls to follow the yellow brick road. 

You think the keystone pipeline from Canada that was nixed by Obama, giving Buffet's newly purchased train a massive footing in the transportation of oil (meaning massive profits), was coincidental?

The winners and losers are chosen. Two sets of rules.

Sun, 09/30/2012 - 18:53 | 2843646 helping_friendl...
helping_friendly_book's picture

I have owned ipods and they never work or let me store MY MUSIC the way I WANT TO. FUCK APPLE.

Sun, 09/30/2012 - 18:35 | 2843616 IMA5U
IMA5U's picture

Bullish for The Bunny Ranch

Sun, 09/30/2012 - 18:36 | 2843621 Heyoka Bianco
Heyoka Bianco's picture

"such companies which have been able to pass through corporate tax savings to end consumers". I think I missed that memo.

The Magrathea reference is great, since the Magratheans' custom plant building eventually bankrupted the universe, but is it a parable for the Fed or AAPL?

Sun, 09/30/2012 - 18:39 | 2843625 Tunga
Tunga's picture

Bloomberg; "... investing in ... tax liens,..." Ha ha ha ha ha ha ha agh ha hem cough cough . Heh heh. 


But seriously "Domestic Corporation" means registered within the United States. And that's how it's listed in all the stuff above. But then the story says they don't have to pay California tax because they are registered in Nevada. Well? Which is it? They are not both the same the US and Nevada you know. If they are registered in the Free and Independent State of Nevada then there is no obligation to owe "Internal" revenue as they are alien to the US federal government. But if the Domestic means United States then they are liable to owe "Internal" revenue. So they don't owe California a dime. So what?  

Sun, 09/30/2012 - 18:50 | 2843643 TNTARG
TNTARG's picture

It makes me think about the marginal gambling den into some cellar far from the eyes of people. Which give us an idea what kind of an "Economic and Finantial System" we have.

And they keep wanting us to pay taxes.

Sun, 09/30/2012 - 18:57 | 2843654 Paulson Bazooka
Paulson Bazooka's picture

Hoard, not horde.


Sun, 09/30/2012 - 22:49 | 2844013 Bear
Bear's picture


Sun, 09/30/2012 - 19:23 | 2843695 Magnum
Magnum's picture

For what it's worth, a braeburn is an apple variety that looks like a royal gala but has a flavor distinctly resembling the granny smith.  Royal appearance, acidic granny underneath.

Sun, 09/30/2012 - 19:40 | 2843717 Yen Cross
Yen Cross's picture

 Alreighty then, Mr Horticulturist! Is it "GREEN or RED"!

Sun, 09/30/2012 - 19:58 | 2843746 Magnum
Magnum's picture

Looks like a Gala which is a very attractive reddish strip with cream/yellow background.  You can do an image search for that.  I am not a braeburn fan.  Rather have a gala, or if I'm looking for acidic give me a granny.  Don't make a granny look like a gala and call it a braeburn.  The braeburn itself is an illusion :)

Sun, 09/30/2012 - 20:26 | 2843785 JR
JR's picture

The profit is $400,000 a year per employee and the man who founded, maintained and literally invented Apple Inc., Steve Jobs, has said the jobs for building most of those profits aren’t coming back to America.

Why? Notwithstanding the endless pro-Apple explanations coming from Silicon Valley, a highly supportive financial industry, loads of friendly Congressmen and even the good offices of the NY Times, the true reason is not very complimentary to this world’s largest company. Simply put: the customs, ethics, regulations, costs, and environment and living standards in America just don’t fit the massive demands for low wage labor, interrelated factories, transportation and other logistics that Apple demands and the Peoples Republic of China provides gratis.

Otherwise, these obscenely high profits would have to be reduced and shared with the American economy which has given Apple its home base and all the advantages that that entails; the world’s most powerful military machine in support is only one advantage, not to mention the U.S. patent system.

The NY Times reported in January that “almost all of the 70 million iPhones, 30 million iPads and 59 million other products Apple sold last year were manufactured overseas.”

As to why those iPhones can’t be made in the U.S.A., the NY Times surmised: “It isn’t just that workers are cheaper abroad. Rather, Apple’s executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that “Made in the U.S.A.” is no longer a viable option for most Apple products."

Continues the Times: “Apple has become one of the best-known, most admired and most imitated companies on earth, in part through an unrelenting mastery of global operations. Last year, it earned over $400,000 in profit per employee, more than Goldman Sachs, Exxon Mobil or Google.

And never mind that about two-thirds of Apple's money is currently parked overseas, according to the WSJ, awaiting another U.S. tax holiday.

I propose that Apple move to China, keep its slavery-gotten gains in one of China’s banks, and let the Chinese government provide it with global security using the Chinese military instead of asking the American taxpayer to do it. And, should that happen, I propose a “U.S.” Congress impose a tariff on all Apple products entering the U.S.

And then we in America can get back to rebuilding freedom and the American dream – literally snatched off our shores by “U.S.” multinational corporations and transferred to Asia by those who have an "unrelenting mastery of global operations." And we in America can make our own iPhones. 

Sun, 09/30/2012 - 20:37 | 2843810 nbsharma
nbsharma's picture

TD: i love your analysis. you are awesome. (of course, there are probably many TDs @ ZH, and my love is for all of you).

Sun, 09/30/2012 - 20:52 | 2843821 squexx
squexx's picture



Gary Wipfler

Gene Levoff

Michael Shapiro


I notice all 3 of them are members of a certain tribe. Somehow, that figures!

Sun, 09/30/2012 - 22:36 | 2843990 laosuwan
laosuwan's picture

their tribe is smarter than your tribe, that's all.


Also, when a person is biased they tend to see only what they are looking for

Sun, 09/30/2012 - 22:43 | 2844002 Bear
Bear's picture

To quote a great mind of the era:

"Can't we all just get along?"

Mon, 10/01/2012 - 02:54 | 2844246 Treason Season
Treason Season's picture

"Tribe?" More like pack animals.

Sun, 09/30/2012 - 22:49 | 2844014 Cosimo de Medici
Cosimo de Medici's picture

An article without a jab at the Joooooos just wouldn't be Zerohedge.  Thanks for doing your part to make the site what it shouldn't have become.

Mon, 10/01/2012 - 01:14 | 2844194 squexx
squexx's picture

WWWHHHHAAANNNHHHH!!!! And you're just another whining asshole!

Sun, 09/30/2012 - 21:09 | 2843856 Richeeb
Richeeb's picture

Its fun to speculate about Samsung puts and Constant Maturity Swaps, but its really not a hegde fund but a coporate treasury function and I'll bet what they are doing in really boring cash management stuff eeking out close to zero in short term interest.  

Sun, 09/30/2012 - 21:20 | 2843872 TWSceptic
TWSceptic's picture

All I can say is: good job Apple. Anyone who can legally find a way to stop government thieves from stealing their property is doing everyone a service. Starve the beast, and everyone will benefit.

Sun, 09/30/2012 - 21:38 | 2843910 synsolve
synsolve's picture

And when the tax man cometh, he will bring a new meaning to the term

"OBAMAphone"...if yo on foodstamps, ain'tgotno job...

Sun, 09/30/2012 - 21:45 | 2843918 TerraHertz
TerraHertz's picture

I wonder how many old mattresses could be stuffed in that corridor?

Sun, 09/30/2012 - 22:35 | 2843988 laosuwan
laosuwan's picture

Nevada: State flower is iceberg lettuce, but there is no state income tax

Sun, 09/30/2012 - 22:55 | 2844028 TheProphet
TheProphet's picture

The city of Austin is alight with a rumor that Apple just bought themselves a couple of buildings and a parcel of land in an office park on the edge of town.

Anyone know a way to confirm or disconfirm this?

Sun, 09/30/2012 - 23:53 | 2844097 JR
JR's picture

Confirmed; this from Jan Buchholz in the Austin Business Journal on August 29, 2012:

Will Apple Inc. build a cutting-edge, architecturally stunning regional headquarters here in Austin? Will it be something akin to the gigantic spaceship-styled edifice it has planned at its world headquarters in Cupertino, Calif.?

I wouldn’t bet on it. In fact, it appears that Apple is planning to build two rather conventional office buildings on land it now owns near Parmer Lane and Delcour Drive in Northwest Austin.

Though Apple is not forthcoming with plans — everybody involved is sworn to secrecy — there is some hint as to what is in the works based upon what has been submitted to the building department at the city of Austin.

The site plans are pretty much what McShane Development Corp. had planned to build at that location back in 2008 before the recession stopped most speculative development in its tracks.

“Originally it was three stories with less parking,” said Lynda Courtney, a development services case manager with the city. “They’ll be making the footprint a little smaller but adding another story. It will be the same density.” …

In fact, you can download a brochure of what McShane planned to build before it sold the 38 acres to Apple in July, a story that the Austin Business Journal broke.

Here's the earlier article (Apple currently has 3,500 employees in Austin):

Apple to build $304M campus, hire 3,600 in Austin

Apple Inc. will expand its Austin presence with a $304 million campus that will ultimately create 3,600 new jobs, according to an announcement today by Gov. Rick Perry.

The new campus will more than double the size of Apple’s workforce in Texas over the next 10 years. The new staff will expand customer support, sales and accounting functions for the region. In exchange for Apple’s commitment to create these new jobs in Texas, the state has offered Apple an investment of $21 million over 10 years through the Texas Enterprise Fund.

 Read more:

Sun, 09/30/2012 - 22:58 | 2844035 TideFighter
TideFighter's picture

Their put company is Granny Smith and their pivot company is Red Delicious. 

Mon, 10/01/2012 - 00:11 | 2844141 chump666
chump666's picture

AAPL hahahahahaha

Those maps ala iphone 5!!!


...and the Nasdaq bubble.


Mon, 10/01/2012 - 00:48 | 2844175 jonjon831983
jonjon831983's picture

What the... who knows what other monsters are lurking out there... I'd assume GOOG would do something similar, etc etc.


And with little to no oversight, how do you know what they are doing to "assist" in the success of the parent?  ie, buying up stock/launching lawsuit actions vs competitors?

Mon, 10/01/2012 - 03:40 | 2844271 steveo77
steveo77's picture

Radiation going up slowly and quickly across the US 
A quick review shows some very disturbing trends. 
An obvious uptrend in radiation is spreading across the country, with some areas seeing scary high levels. Something happened around Sept 17th.  
Rule of thumb is that exposure to 100 CPM clicks per minute for a year results in a real risk of cancer, 500 CPM for 90 days is a real risk. 
Many places are now up over 100, 
25 is "normal" we just don't get that much lower. And back in the day, before Fuku, 50% to 66% of us got cancer, what will the new normal be.  
Basic protective measures, air filters, anti-oxidants. Do them now if you are not on track. slowly-and-quickly.html

Mon, 10/01/2012 - 05:26 | 2844301 falak pema
falak pema's picture

aaples are green but greenbacks are greener! 

talking about money : what happened to the "money time" stalwarts of US Ryder Cup?

The 18th green proved fatal to those money timers who never lose when it gets down to "hard bucks". 

I won't rub it in but was that a rout! 

Hell, its only sport, sport! 

Mon, 10/01/2012 - 05:31 | 2844305 Grand Supercycle
Grand Supercycle's picture


WARNING: substantial EURUSD support detected: this is stock bullish.

USDX selling / EURUSD buying which supports stocks & causes more short squeezes – ensures the inevitable equity sell off will be worse.

Mon, 10/01/2012 - 06:06 | 2844313 giggler123
giggler123's picture

Does this mean if you buy AAPL, you are really buying other shares, simply because they take your money, and push it back on market under Braeburn?


Braeburn is my favorite variety of apple, crispy until late Autum - seems appropriate.  However they are going to taste a little sour and pussie from now on for sure...

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