This page has been archived and commenting is disabled.

A Record 216 Hedge Funds Own Apple: The World's Biggest Hedge Fund Hotel Gets Even Bigger

Tyler Durden's picture





 

It is just getting plain silly: with a record 216 hedge funds holding Apple at the end of 2011, why does anyone pay the 2 and 20 any more? Just buy Apple. As a reminder, at the end of Q3 209 hedge funds owned Apple, at the end of Q2 it was 181, at the end of Q1 it was 173 and so on. The paterns is clear. What is also clear is that as Apple goes, so goes the entire hedge fund space. Goldman notes: "30% of  fundamentally-driven hedge funds hold at least one share of AAPL. One out of five hedge funds has AAPL among its ten largest long positions. When among the top ten holdings, AAPL represents an average of 8% of total single-stock long equity exposure. In aggregate, hedge funds own only 4% of AAPL market cap with 1.6% average position across all funds."

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 02/23/2012 - 11:20 | Link to Comment john39
john39's picture

and they charge for putting clients into that?  who is the bigger idiot, client or fund...

Thu, 02/23/2012 - 11:23 | Link to Comment BaBaBouy
BaBaBouy's picture

AND The Brand-New I-Fone Price will be 1999.99 ...

 

Will The Gotta-Have-It SUCKERS keep on paying ?????????????????

Thu, 02/23/2012 - 11:25 | Link to Comment BaBaBouy
BaBaBouy's picture

The "Barbarick" Stock ...

Thu, 02/23/2012 - 11:39 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I ate the apple and now all I want to do is stack silver.  Afterall, it's only $34.....

....make that $35.

Thu, 02/23/2012 - 11:45 | Link to Comment flacon
flacon's picture

Huge negative silver raid going on at the moment. (economic-speak for the price is rising)

Thu, 02/23/2012 - 11:49 | Link to Comment redpill
redpill's picture

It is with great amusement that I can sit back and watch the "smartest guys in the room" get worked up into a sweaty-palmed terror as they helplessly try to trade in this impossibly speculative front-run market and finally resign themselves to being nothing more than a herd of sheep chasing AAPL, no different than any average mouth-breathing Cramer-watching Dodge Stratus-driving retail investor who thinks he's a stock market rockstar because of a company that somehow managed to pasturize their Chinese slave labor into sleek pop-culture-icon personal electronics.

Thu, 02/23/2012 - 11:54 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

 

It is with great amusement that I can sit back and watch the "smartest guys in the room" get worked up into a sweaty-palmed terror as they helplessly try to trade in this impossibly speculative front-run market and finally resign themselves to being nothing more than a herd of sheep chasing AAPL, no different than any average mouth-breathing Cramer-watching Dodge Stratus-driving retail investor who thinks he's a stock market rockstar because of a company that somehow managed to pasturize their Chinese slave labor into sleek pop-culture-icon personal electronics.

This needed framing.

Thu, 02/23/2012 - 11:56 | Link to Comment redpill
redpill's picture

Come to think of it I think I'll start a Chinese Factory Worker Suicide Index that would be a positive leading indicator of increasing Apple productivity.  Nothing says "success" like working people until they kill themselves.  Now THAT'S an organization I want to own a piece of!

Thu, 02/23/2012 - 11:58 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They died for the love of their product.

Thu, 02/23/2012 - 12:02 | Link to Comment redpill
redpill's picture

4 fresh bodies this morning Johnson!  This is perfect "research content" to include in our March investor newsletter to justify to our clients the fund's continued leveraged purchase of AAPL stock even at $500+ levels!  I feel a martini lunch coming on!

Thu, 02/23/2012 - 14:19 | Link to Comment tamboo
tamboo's picture

sleek pop culture icon surveillance electronics;

 

fixed it for you.

Thu, 02/23/2012 - 11:57 | Link to Comment Don Birnam
Don Birnam's picture

The above-captioned 50 "most popular stocks" with the hedge fund universe quite literally runs like the top 50 holdings in Fidelity Contrafund. 

So, is it assumed that only the "One-Percenters" will be shorn when this hedge fund hotel complex eventually incinerates capital with similar intensity as the investment equivalent of the Triangle Shirt Waist Factory fire ? Indeed, glance at the "Top 20" lists of the most asset-bloated mutual funds at retail behemoths Fidelity, Dodge & Cox, T. Rowe Price, and so forth, and I submit that the collateral damage to the retail IRA/401(k) investor has the propensity to be, frankly, devastating. This is the most crowded trade I have witnessed in a very long time, and will most certainly not end well.

 

 

Thu, 02/23/2012 - 11:29 | Link to Comment Born Patriot
Born Patriot's picture

Those god damn assholes at "Apple" need to learn something about patriotism and country. What fuck is up with them hiring these overseas monkeys in China? Last time I checked, Apple was an AMERICAN company. I want to see these bastards hire Americans and pay American wages.

Thu, 02/23/2012 - 11:32 | Link to Comment resurger
resurger's picture

Do you want to troll this?

Thu, 02/23/2012 - 11:42 | Link to Comment monopoly
monopoly's picture

I see the trolls are back. First of all those "monkeys" are human beings who are trying to support their family in their country. 

Next, AAPL cannot hire Americans because the unions would make sure that AAPL would not make a profit on the products they sell because it all belongs to the workers in the form of pay, health care, retirement, sick leave, vacation, maternity leave, union paying meetings, and on and on.

And, then investors would be upset as profits move lower, they sell their holdings. Then more jobs would be lost here in America as AAPL will have to do what so many American corporations have done and that is fire employees, putting more on the govt. tit.

Is that what you mean? Some of these posts are truly amazing.

Thu, 02/23/2012 - 12:04 | Link to Comment Jay Gould Esq.
Jay Gould Esq.'s picture

Troll Consubstantiation: three persons, equal, but yet one.

The Trinity:

* Hamy_Wanger

* _Million_Dollar_Bonus

* Born Patriot

Kindly leave a small gratuity in the poor box if you light a candle.

 

Thu, 02/23/2012 - 12:37 | Link to Comment NotApplicable
NotApplicable's picture

Nothing equal about them at all. M$B is fairly pure satire, while BP is trying to smear ZH and its commentators, always using the dirtiest brush available to attempt to apply tar.

Hamy, meanwhile covers the whole range, depending upon the subject.

These are the trolls I know, I know.

These are the trolls I know.

Thu, 02/23/2012 - 14:18 | Link to Comment GovtMediaLiars
GovtMediaLiars's picture

Are you an inbred drooling retard? Or just trolling?

You're no patroit. Indeed, the idea is laughable.
You are simply a brainwashed, economically ignorant, flag-waving cheerleader for the political elite. A "useful idiot" is what those folks call people like you. 
Divide and conquer. It works quite well on the feeble mind, unfortunately. 

It is people like you, and your counterparts on the left that are responsible for damn near everything that is wrong with this country. And indeed the world for that matter.
You are an enabler of criminals and totalitarians.

Very few around these parts are cognitively challenged enough to buy the nonsense you're selling my friend.

Cheers!
GML

“It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a ‘dismal science.’ But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.” --M. Rothbard,  Economist and Historian.

http://financeandopportunity.blogspot.com/

Thu, 02/23/2012 - 12:00 | Link to Comment LongSoupLine
LongSoupLine's picture

216 Hedge Funds with 216 Congressional (or spouse, son, daughter, mistress, etc) ownership.

Thu, 02/23/2012 - 12:21 | Link to Comment slaughterer
slaughterer's picture

Personally, I will not be happy until every hedge fund in the world is synthetically 300% long AAPL. 

Thu, 02/23/2012 - 11:20 | Link to Comment Robslob
Robslob's picture

 

What is a "Hedge" fund for $500 Alex?

Thu, 02/23/2012 - 11:30 | Link to Comment bdc63
bdc63's picture

Yep ... that's the "smart money" we keep hearing about on CNBC.  Boy oh boy do I wish I could be as smart as those guys ... sigh ...

Thu, 02/23/2012 - 11:38 | Link to Comment Comay Mierda
Comay Mierda's picture

i was watching cramer last night pump up AAPL hardcore to retail investors calling in.  Saying AAPL is important for a diversified portfolio and other bullshit.  The sheep are about to get FLEECED on this fucken stock.  I wonder how much SCrAMer gets paid by apple to pump and dump

Thu, 02/23/2012 - 12:05 | Link to Comment Max Fischer
Max Fischer's picture

 

 

You guys have been saying that AAPL investors would get fleeced for the past $300/share.  The collective pessimism around here is causing you guys to miss huge wealth opportunities.

Max Fischer, Civis Mundi

Thu, 02/23/2012 - 12:11 | Link to Comment AccreditedEYE
AccreditedEYE's picture

Just be sure you're taking profits Maxi.... I wouldn't call these LASTING wealth opportunities.

Thu, 02/23/2012 - 12:31 | Link to Comment Comay Mierda
Comay Mierda's picture

AAPL is displaying a text book bump-and-run reversal pattern. sell that piece of shit while you can

Thu, 02/23/2012 - 13:21 | Link to Comment monoloco
monoloco's picture

Why don't you put your money where your mouth is and open a big short position in aapl? Then get back to us and let us know how that turned out for you.

Thu, 02/23/2012 - 14:38 | Link to Comment GovtMediaLiars
GovtMediaLiars's picture

I'm short AAPL. As of this past friday morningish. In the form of ATM Puts.

Basically flat (though volatile) in price since then so time decay has resulted in a small open loss so far. I'm fairly confidant that aapl needs at least a correction of 10% or so some time before my options expire in April. We shall see I guess. Good luck to all!

Cheers!
GML

http://financeandopportunity.blogspot.com/

Thu, 02/23/2012 - 15:35 | Link to Comment Comay Mierda
Comay Mierda's picture

i will in the next couple of days, waiting for it to break the insanely steep support line and for the 4 day moving average to cross over the 9 day. then yes, i will be short muthafukka

Thu, 02/23/2012 - 11:51 | Link to Comment AccreditedEYE
AccreditedEYE's picture

I cannot wait for this pig to go down. I've waited (and been wrong) for a long time now. My bad for underestimating their trained lemming-like customers to buy anything with an "i" in front of it with their government provided "assistance". End of the day, they are just another retail operation and when the margins get hit, growth rates slow down and people realize this is just another "Microsoft" this thing will tank faster than Madoff's credibility. (And take the market down with it)

Thu, 02/23/2012 - 11:56 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

their trained lemming-like customers to buy anything with an "i" in front of it

Freud would have something to say about that.

Thu, 02/23/2012 - 12:10 | Link to Comment AccreditedEYE
AccreditedEYE's picture

great point sir. Sums up the way the entire culture thinks as well.

Thu, 02/23/2012 - 11:21 | Link to Comment Ruffcut
Ruffcut's picture

They are setting up an app with cameras at foxconn, pay per view, called Ijump.

Thu, 02/23/2012 - 11:38 | Link to Comment john39
john39's picture

"foxconn"... a taiwanese company with a decidely non-taiwanese name...   hmmm.

Thu, 02/23/2012 - 11:27 | Link to Comment Shizzmoney
Shizzmoney's picture

I'm rooting for China to go to a gold standard, or start a trade war with the United States.

It will teach these corporations a lesson to NOT fuck with our currency in the sake of fake phantom profits on the backs of the Chinese slave worker.

I pity the man who wants a coat so cheap, that the man or woman who produces the cloth, will starve in the process. Benjamin Harrison

Thu, 02/23/2012 - 11:22 | Link to Comment Dr. Engali
Dr. Engali's picture

I love Apple products , but it is gonna be funny to watch the scramble out of this pig.

Thu, 02/23/2012 - 11:44 | Link to Comment bdc63
bdc63's picture

are you kidding?  easy as (AAPL) pie ...

First, you just parade a dozen or so analysts across the screens on CNBC that proclaim AAPL is going to 850 by July based on 'fundamentals' (nobody ever checks their math - I'm not even sure they still teach math in American schools anymore) ... then you talk about how all the "smart money" is in the name, and the poor stupid retail investor is once again missing this run.  Then we'll get Cramer to open his show with every square inch of his desk COVERED with shiney gala apples.  Next ... well, I guess we all know what happens next ...

Thu, 02/23/2012 - 11:22 | Link to Comment ZippyBananaPants
ZippyBananaPants's picture

And how in the world should IBM be trading at an all time high?   Oh, yea, I guess when you can add $24 points to the DOW, you buy IBM.  Who in the hell buys IBM in this climate at all time highs?  Oh, yea, banks using free money that they don't have to pay back.

 

Thu, 02/23/2012 - 11:23 | Link to Comment The Proletariat
The Proletariat's picture

iZeroHedge

Thu, 02/23/2012 - 11:39 | Link to Comment LouisDega
LouisDega's picture

That makes Tyler, T iLer

Thu, 02/23/2012 - 11:22 | Link to Comment resurger
resurger's picture

 

"Fuck you goldbarians, buy APPL"

Sincerely yours

Dr. Paul Krugman

Thu, 02/23/2012 - 11:25 | Link to Comment Pairadimes
Pairadimes's picture

Hedge funds are to investing what lottery tickets are to retirement planning.

Thu, 02/23/2012 - 11:26 | Link to Comment Oliver Jones
Oliver Jones's picture

iBubble.

Thu, 02/23/2012 - 11:28 | Link to Comment booboo
booboo's picture

waiting for the buttsex with Siri app, BrownI

Thu, 02/23/2012 - 11:33 | Link to Comment JRGeico
JRGeico's picture

I like how BAC is the top performing holding in this chart

Thu, 02/23/2012 - 11:38 | Link to Comment falak pema
falak pema's picture

ha,ha, ha, what a hedge! HF now all practicing 100% the opposite of their mission statement : 

Don't follow the herd!!!

Apparently they don't believe in TD's prediciton of the marginal return of CB fiatification spigot open. 

They believe in RobotTrader and BTFD, but but, what dip was that...???

Thu, 02/23/2012 - 11:36 | Link to Comment HD
HD's picture

Oh wow, oh wow, oh wow...

Thu, 02/23/2012 - 11:36 | Link to Comment Dr. Engali
Dr. Engali's picture

Tyler don't be silly. We all know that the reason you pay the 2 and 20 is so that you have the luxury of letting your friends know you have enough money to pay that 2 and 20.

Thu, 02/23/2012 - 11:37 | Link to Comment Moneyswirth
Moneyswirth's picture

Apple Shmapple.  ZNGA is the new AAPL.  And next quarter, FCBK will be the new ZNGA. 

Social networks BITCHEZ!  Tim Cook is missing the boat....

Thu, 02/23/2012 - 11:38 | Link to Comment tinsmith
tinsmith's picture

It's not so much one hedge fund putting all their eggs in one basket, it's one basket holding everybody's eggs. If, or when, that basket tips overit's gonna be one hell of an omlette.

Thu, 02/23/2012 - 11:38 | Link to Comment Bertie Wooster
Bertie Wooster's picture

Tyler, which is it you hate, the computerized HFT funds that steal money for a living? or the guys that have actually picked a good stock in Apple this year?  

Cuz I only know one thing, if there was a hedge fund out there that had 500% of its assets in Apple this year, that's the hedge fund I wish I were in right now.

I think Tyler Durden is too smart a character to be a Playa Hata.  Cuz that's the only thing this article accomplishes.

Que up the Biggie Smalls song now.

Thu, 02/23/2012 - 11:50 | Link to Comment LongBallsShortBrains
LongBallsShortBrains's picture

Tyler hates the game not the playa

Thu, 02/23/2012 - 11:38 | Link to Comment SilverRhino
SilverRhino's picture

HELLO Silver $35.  I missed you!! :-)

Thu, 02/23/2012 - 11:38 | Link to Comment Winston Churchill
Winston Churchill's picture

AppleROn .

Same accounting tricks.

These endless reruns of the same fraud get boring.

Thu, 02/23/2012 - 11:39 | Link to Comment CvlDobd
CvlDobd's picture

The damned if you do, damned if you don't nature of ZH readers continues.

"Fuck John Paulson for losing 50%!"

On the other hand

"Fuck every other manager for actually owning the best performing stock!"

Which is it dumbasses?

Thu, 02/23/2012 - 11:49 | Link to Comment Dr. Engali
Dr. Engali's picture

Feel free to go some place else. The fact is That these funds have  no creative ideas for generating  alpha so they are forced to chase performance.

Thu, 02/23/2012 - 11:56 | Link to Comment Flakmeister
Flakmeister's picture

Yep.... takes a trained eye to distinguish between alpha and levered beta....

Thu, 02/23/2012 - 11:58 | Link to Comment CvlDobd
CvlDobd's picture

I love this site Doc, I'm just trying to point out to people the nature of their thoughts.

"John Paulson is an idiot for selling gold!" and then two weeks later it's "John Paulson bought gold? What a moron!"

Hedge Funds get flows based on making money now!

So just because I agree with people like Kyle Bass on long term issues, I'm not going to keep much hot money by avoiding items that work in the short term. Would you rather a hedge fund make you money in AAPL despite the crowd or have lost your ass shorting he past few months? I agree with the "this shit is fucked so let's short" fundamental view but that's not making me money.

These posters think a hedge fund should be run like their back yard bunker and that just isn't the case. I doubt it ever will be.

BTW, I'm not going anywhere.

Thu, 02/23/2012 - 11:41 | Link to Comment bpom
bpom's picture

AAPL outperforms GLD.

Thu, 02/23/2012 - 11:42 | Link to Comment digalert
digalert's picture

Why do they list JPM, BAC etc.

Other Diversified Financial Sevices

Could they just use one word...racketeering?

Thu, 02/23/2012 - 11:45 | Link to Comment AmazingLarry
AmazingLarry's picture

I'm fully hedged by NOT owning it

Thu, 02/23/2012 - 11:45 | Link to Comment adr
adr's picture

I'm not really watching Apple. I"m watching the stock market get a huge spike from the Greek governent passing the swap deal. Something we knew would happen, yet the market takes a .5% rocket ride.

 

I guess Algos really are that stupid.

Thu, 02/23/2012 - 11:51 | Link to Comment Max Fischer
Max Fischer's picture

 

 

I'm not sure I understand the criticism of buying AAPL.  It's producing world record profits, continues to demonstrate world record growth, and often times has more available cash in the bank than the operating balance of the US Treasury. 

This stock is going higher.  Much higher.  So is the entire market.  Autos.  Housing.  Retail.  Banks.  Gold.  Silver.  EVERYTHING is going higher this year.   

Max Fischer, Civis Mundi 

 

Thu, 02/23/2012 - 11:52 | Link to Comment taniquetil
taniquetil's picture

On a related question:

 

How much of Apple's value is due generated by all of this hedge fund interest?

Thu, 02/23/2012 - 11:55 | Link to Comment ttown
ttown's picture

SEARS SHLD LMAO lose $22/share in 1 QTR so stocks goes up $10 BRILLIANT!!!

Thu, 02/23/2012 - 12:21 | Link to Comment Schmuck Raker
Schmuck Raker's picture

The word 'Newton' comes to mind, for some reason. I have no idea why.

What could it mean? What is my brain trying to tell me?

Thu, 02/23/2012 - 12:37 | Link to Comment dwdollar
dwdollar's picture

These hedge fund guys are so smart. I wish I was as smart as them.

All this proves is that most wealthy people alive today are just a bunch of lemmings. Their wealth has been accumulated not by intelligence or wit, but by a corrupt system of unjust laws.

Thu, 02/23/2012 - 12:44 | Link to Comment I should be working
I should be working's picture

That's how the US economy works now.  1 innovative company, 216 leaches trying to take it for every dollar it's worth.

Thu, 02/23/2012 - 13:20 | Link to Comment zilverreiger
zilverreiger's picture

What if Iran blows up their cupertino office with 50k fertilizer?

Thu, 02/23/2012 - 14:15 | Link to Comment tamboo
tamboo's picture

hilarious and scathing review of new joobs bio, top notch journalism!!!!

 

http://blogs.reuters.com/great-debate/2012/02/22/the-book-of-steve-jobs-...

Thu, 02/23/2012 - 15:16 | Link to Comment Alchemist1
Alchemist1's picture

Why is that silly? They have bene right for a logn time? ZH has been harping about AAPL being HF hotel for the past $300 points

Thu, 02/23/2012 - 16:32 | Link to Comment johnjkiii
johnjkiii's picture

The perfect Hedge?? Vxx basic chart i path s&p 500 vix short ter... http://slidesha.re/xCxZmQ via @slideshare

Fri, 02/24/2012 - 10:04 | Link to Comment paddy0761
paddy0761's picture

I don't see GLD in that list; I'm excited.

Mon, 05/14/2012 - 18:17 | Link to Comment Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

For those that don't understand TD's schizophrenic selective bias... He seeks revenge against the very financial system that shunned him. A collapse and overhaul of the machine would satiate that desire, therefore he does his bit via ZH. As a big and easy target, Apple's just a proxy for the upside funds invested in it.

 

In the olden days, TD was a polite and even personable young scamp. Today he's become less Brad Pitt and more... Golum. Trixy Hobbitses...

 

http://www.youtube.com/watch?v=DLvIFRNbqOs

 

But he's kept to his principles in uncovering a huge amount of juicy info... Finansoviya strogo sekretno! His father must be proud of him now.

 

Apart from the bias, the unfunny sarcasm at the end of tweets and the rampant sausage-fest, I love ZH! Keep up the good work!

 

 

 

For real.

Do NOT follow this link or you will be banned from the site!