Apple Dominates Hedge Funds and Mutual Funds

Strategic Insights -

Apple Inc., the Cupertino, Calif.-based maker of iPods and iPads, continues to hold the top position among the top 50 hedge funds in the U.S. for the second quarter, according to Citigroup Inc. The company also dominates the list of the largest mutual funds, with Wells Fargo & Co. and Merck & Co. being the second and third most-held stocks, respectively. Apple has retained the top spot among both growth and value hedge funds, indicating a high degree of consensus within the hedge-fund world and a possible break from traditional investment styles.

Key Takeaways:

  • Apple Inc. has been the most-held stock among the top 50 hedge funds in the U.S. since the third quarter of 2010.
  • Wells Fargo & Co. and Merck & Co. were the second and third most-held stocks among the largest mutual funds, respectively.
  • Technology stocks account for around 30% and almost 50% of the top portfolio positions held by mutual funds and hedge funds, respectively.
  • Apple outperformed 99% of the 500 stocks in the Standard & Poor's 500 Index since the start of the third quarter.
  • Apple returned 13% from June 30 through Tuesday.
  • Wells Fargo was the most-owned stock for value mutual funds, while Google Inc. was the biggest position for growth funds.
  • JPMorgan Chase & Co. was the second-biggest position for hedge funds, behind Apple.

Statistics:

  • 16 of the 50 largest U.S. hedge funds own Apple.
  • 17 of the largest 50 mutual funds own Wells Fargo and Merck.
  • Technology stocks account for around 30% of the top portfolio positions held by mutual funds.
  • Technology stocks account for almost 50% of the top portfolio positions held by hedge funds.
  • Apple has outperformed 99% of the 500 stocks in the Standard & Poor's 500 Index since the start of the third quarter.
  • Apple returned 13% from June 30 through Tuesday.

Sources:

  • Citigroup Inc.
  • Bloomberg News
  • 2011 Toronto Star