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Will Investors Follow Buffett in Dumping Apple Stock? Here's What Hedge Funds Are Doing

Benzinga ·  Aug 5 14:16

Last Friday's weaker-than-expected jobs report drove the tech sector and overall U.S. equity market lower as fears mounted about a potential recession. Reports then broke about Warren Buffett and $Berkshire Hathaway-B (BRK.B.US)$ selling half of its $Apple (AAPL.US)$, further escalating the fears about the health of the market.

In the first quarter of 2024, Buffett trimmed Berkshire's Apple stake, selling a little more than 100 million shares. In the second quarter, Berkshire shed another 390 million shares, according to filings.
Despite the sales, Apple remains Berkshire's largest public holding, as the Buffett-backed investment firm still holds around 400 million shares of Apple, worth nearly $90 billion.

And while the "Oracle of Omaha" may be taking some profits on the tech giant, other hedge funds are still betting the house on Apple.

Jennison Associates, a fund with more than $200 billion in assets under management (AUM) added more than 11 million shares of Apple in the second quarter, making its Apple position more than 5% of its total portfolio. Jennison first purchased Apple in 2004, and has an average cost basis of around $85 according to Whale Wisdom.

William Jones Wealth Management, a New York-based firm with more than $10 billion in AUM added 35,000 shares of Apple in the second quarter, bringing its total holding of Apple to around 2.2 million shares worth around $460 million. William Jones' average Apple cost is about $54 a share.
But, other firms seem to be following Buffett's early lead from the first quarter of 2024.

Coatue Management, an investment firm with around $70 billion in AUM, sold more than two million Apple shares in the first quarter, completely closing the firm's position. Coatue added shares of chip companies like $Taiwan Semiconductor (TSM.US)$, $Broadcom (AVGO.US)$ and others in the first quarter.

Cerity Partners, a fund with around $20 billion in AUM, sold around 3 million Apple shares in the first quarter. The stock remains a big position for Cerity, with Apple making up a little bit less than 3% of its portfolio.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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