Prominent Hedge Funds Flocked to Apple in Fourth Quarter
Although Apple(NASDAQ:AAPL) reported record revenue for its fiscal first quarter, the earnings results disappointed Wall Street and caused the company’s share price to decline by over 8 percent the day after the results were released. However, despite Wall Street’s initial negative reaction to the company’s December quarter results, Apple attracted major investments from top U.S. hedge funds during the fourth quarter, reports Reuters via CNBC.
Third Point, the hedge fund run by activist investor Daniel Loeb, purchased 100,000 Apple shares during the fourth quarter, according to regulatory filings seen by Reuters. Blue Ridge, the hedge fund founded by Tiger Management veteran John Griffin, added 320,000 Apple shares to its portfolio of investments.
Carl Icahn, chairman of Icahn Enterprises, is perhaps the highest profile Apple investor. The day after Apple’s quarterly earnings results were announced, the billionaire investor tweeted that he had purchased an additional $500 million more of Apple shares, boosting his estimated total investment in the California-based company to more than $4 billion.
Icahn had long been pushing the iPhone maker to return more cash to shareholders by expanding its share repurchase program by another $50 billion. However, the activist investor dropped his proposal soon after CEO Tim Cook revealed in an interview with the Wall Street Journal that the company had repurchased $14 billion of its own shares after its fiscal first quarter earnings announcement. Although Cook was “surprised” by the sudden decline in Apple’s share price, he used the opportunity to accelerate the company’s ongoing stock buyback plan.