Despite warnings that Apple’s iPhone cash cow was drying up, the company had run out of ideas and its pay more for less business model was failing, several prominent investors flogged their shares in high-flying tech companies, betting the iPhone maker’s stock would keep rising.
The move has left some large investors with steep losses particularly if Apple continues its more than 15 percent decline for the month so far.
Mutual fund giant Fidelity added seven million shares, bringing its total holdings to 110.9 million shares, regulatory filings and data from research firm Symmetric.io show. Janus Henderson Group added 3.3 million shares for a total of 20.8 million shares and J.P. Morgan Chase & Co boosted its holding to 42.7 million shares after adding 1.3 million.
Philippe Laffont’s Coatue Management made a big bet by raising his exposure by 938 percent to 884,321 shares while Chase Coleman’s Tiger Global Management put on a new position to own just over 1 million shares.
What is even more amazing is some of these financial genii are still investing in Apple. Perhaps hoping that the Tame Apple Press will be encouraging people for a turn around.
Shawn Kravetz, founder of Esplanade Capital said that Apple was a compelling valuation compared to other Silicon Valley giants.
The declines in Apple may add to what is proving to be another difficult year for the hedge fund industry.