Harriet Lefton

About the Author Harriet Lefton

Harriet originates from the UK where she worked as a journalist specializing in the metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer.

How Hedge Funds Have Traded Apple Inc. (AAPL) Amid $14 Billion Tax Appeal

As Apple Inc. (NASDAQ:AAPL) and Ireland launch a legal challenge this week to a record $14 billion EU tax ruling, we take a look at how notable hedge funds have traded Apple stock.

Apple designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. It has the highest market value of any listed company.

Now senior executives at Apple are claiming that EU regulators dismissed tax experts and corporate law in order to maximize the proposed penalty and attract further media attention. On August 30, the European Commission said that Apple’s tax deal with Ireland- where the company has its European headquarters- was illegal state aid. The Irish government subsequently joined with Apple to protest the ruling.

However, analysts remain very bullish on Apple stock. At the time of writing, according to TipRanks, the price target stands at $133.94, marking a nearly 16% upside from current levels. Out of all the analysts who have rated the stock in the past 3 months, TipRanks shows that 83% are bullish on the shares and  close to 17% are neutral. None of the analysts recommend selling the stock.

Based on the most recent 13F forms submitted to the SEC, we can see which notable hedge funds have increased or decreased their Apple holdings.

The following are notable hedge funds that increased their Apple holdings:

Maverick Capital Ltd

Lee Ainslie serves as the CEO of Maverick Capital, a fund he founded in 1993 at the invitation of billionaire Sam Wyly. The firm holds both long and short equities positions based on fundamental analysis.

Last quarter, the $8.44 billion fund generated a 5.33% gain for investors, and a 2.39% gain in the last year. The fund mostly invests in the Technology sector, followed by Healthcare and Services.

The fund significantly ramped up its AAPL holdings by 32,916.04% to more than 1,990,800 shares valued at $225.07 million. Ainslie is ranked #50 out of 207 hedge fund managers followed by TipRanks.

Glenview Capital Management

Larry Robbins is the founder, portfolio manager, and CEO of Glenview Capital Management who, according to Forbes, is known for both his hot streaks and his cold streaks.

The $13.98 billion fund made an average return in the last quarter of 3.43%- in the last year the healthcare-focused fund’s average return was a loss of -3.76%.

Glenview Capital added a new position in AAPL with a purchase of 679,213 shares valued at $76.79 million. Robbins is ranked #40 out of 207 hedge fund managers on TipRanks.

Bridgewater Associates LP

Ray Dalio is the co-chief investment officer of Connecticut-based Bridgewater Associates, a fund he founded in 1975 after he began investing at the age of 12.

Last quarter, the $10.16 billion fund generated a 6.32% gain for investors, and a 12.71% gain in the last year. The fund mostly invests in S&Ps (83%), followed by Basic Materials and Technology.

The fund increased its AAPL holdings by 185.97% to more than 346,000 shares valued at $39.18 million. Dalio is ranked #167 out of 207 hedge fund managers followed by TipRanks.

The following are notable hedge funds that decreased their Apple holdings:

Diamond Hill Capital Management Inc

Ric Dillon is the chairman and portfolio manager at Ohio-based hedge fund Diamond Hill Management which primarily employs a bottom-up, fundamental approach to its investing strategy.

The $16.18 billion fund generated a 5.63% gain for investors in the last year and has outperformed the average portfolio but underperformed the S&P 500. Diamond Hill invests in a variety of sectors including Financial, Consumer Goods, Services and Technology.

The fund slashed its AAPL holdings by 10.10%. It now owns 2,819,968 million shares valued at more than $318 million. Dillon is ranked #48 out of 207 hedge fund managers tracked on TipRanks.

Gotham Asset Management LLC

Joel Greenblatt is the managing partner of Gotham Asset Management which he founded in 2007 with just $7 million. The firm provides client-focused global equity portfolios, primarily in value stocks.

The $7.68 billion fund generated a 3.64% gain for investors the last year. Gotham invests mostly in the Services sector, followed by Technology, Consumer Goods and Healthcare.

The fund decreased its holdings in AAPL by 40.99%. The fund’s remaining shareholding now stands at 459,757 shares with an estimated value of $51.98 million. Greenblatt, author of The Little Book that Beats the Market, is ranked #62 out of 207 hedge fund investors on TipRanks.

Diker Management LLC

Mark Diker is the founder of the employee-owned hedge fund sponsor Diker Management. The firm invests in equity and fixed income markets around the world, with a focus on the United States.

Last year, the $280.55 million fund generated a 3.72% gain for investors. Diker invests mostly in Healthcare, followed by Consumer Goods.

The fund reduced its AAPL holding by 16.56%. It now owns 531,733 shares valued at $60.11 million. Diker is ranked #35 out of 207 hedge fund managers on TipRanks.