New York (HedgeCo.net) – According to recent 13F filings, several large hedge funds were adding shares of Apple in the second quarter. A recent Reuters’ article cited that David Tepper and Appaloosa Management LP initiated a new position on the tech giant by buying 2.5 million shares during the second quarter. AQR Capital Management added 718,283 shares which brought the total number of shares held by the fund to 7.6 million shares.

Coatue Management already held 7.64 million shares and they added 860,000 shares during the quarter, bringing the total to 8.5 million shares. Nevsky Capital bought an additional 751,000 shares to bring their total holdings to 2.6 million shares.
The only fund the Reuters article noted as a seller of Apple was Bridgewater Associates which sold 201,500 shares and that reduced their holdings to 531,497 shares.

Apple has fallen 7.13% since the end of the second quarter and is down 11.8% in the last four weeks. This type of decline is exactly the kind of issue that was pointed out in an article in the HedgeCoVest newsletter last week. Some liquid alternatives use 13F filings in order to try to mimic the portfolios of hedge funds. The hedge funds above were adding Apple during the second quarter, but here we are in mid-August before we find out about the buying and now the stock is down. Does that mean these funds are buying more Apple shares or have they started selling now that the stock is below its 200-day moving average? We will have to wait until mid-November to find out.

Rick Pendergraft
Research Analyst
HedgeCoVest