Wednesday, May 22, 2013

Google Is The New Hedge Fund Hotel, Boeing The Market Darling, And Apple's Looking Rotten

 From Forbes:  "....The 50 largest hedge funds in the world decided to sell Apple in the first quarter, replacing it with Boeing  and, interestingly, Norwegian Cruise Holdings which went public in January, according to a report by FactSet.  The group of hedge fund heavyweights, which includes the likes of Carl Icahn, David Einhorn, and Dan Loeb, bet on consumer discretionary, which appeared as the most overweight sector, while LyndoellBasell was the most overweight equity, compared to its weights in the S&P 500.  They shunned the IT sector, and particularly Apple, which still remains the sixth largest holding by dollar-value.  The hedge fund hotel: Google, held by 62% of the 50 largest hedge funds.

And hedge funds played the market, buying Boeing en masse.  Despite battery fires that forced the Chicago, Illinois company to ground the entire 787 Dreamliner fleet, the stock handily beat the S&P 500, as hedge funders poured in $1.6 billion in inflows, or about 250% of its fourth quarter value in the funds’ aggregate portfolio.

Basking in Apple’s former glory is Google, which is currently held by 62% of the largest funds and is the second largest holding by dollar value, at $6.8 billion….

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