Thursday, January 31, 2013

The funds that saw Apple's nosedive coming




From Yahoo: The slump in Apple Inc's share price from its September high has badly dented the returns of hundreds of mutual funds that had maintained outsized holdings of the stock. But some went sour on the iPhone-maker just in time.

Of the 321 funds that had more than 5 percent of their assets in Apple shares at the beginning of 2012, 53 of them - or slightly more than 16 percent – looked at  the Tarot cards and significantly cut back their weighting of the company before the plunge gained momentum, according to data from Morningstar.

Whether it was a case of simple risk management, concerns that the company's share price had peaked, or a bit of luck, fund managers who drained Apple from their portfolios helped drive down the price of the stock. As a result of their early shift in sentiment, they appear quite prescient now….


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