New York (HedgeCo.net) With some of the latest regulatory filings coming out in the past week, one theme that jumped out was how hedge funds are reducing their exposure to large tech firms. Two names in particular that jumped out were eBay (Nasdaq: EBAY) and Apple (Nasdaq: AAPL).
According to articles from Reuters, Omega Advisors and Coatue Management both reduced their stakes in Apple during the first quarter while Third Point LLC and Farallon Capital Management both reduced their stakes in eBay.
Coatue sold 1.2 million shares of Apple during the first quarter, but even with the stake reduction, AAPL remains the largest U.S. stock holding for the fund. Omega Advisors sold their entire stake during the first quarter, all 383,790 shares. Perhaps the funds were looking to lock in gains with the stock up 111.95% over the last two years and from January 27 through February 23 of this year, the stock was up 22.3% while the S&P was up a mere 3.95%.
Third Point cut its eBay stake by 1 million shares, but the fund still holds 9 million shares. Farallon sold over 650,000 shares, but they still hold 1.8 million shares.