Published in News

Wall Street continues to turn on Apple

by on04 June 2013

Hedge fund dumps more shares

Last year it was mostly the hedge funds which pushed Apple’s share price to unsustainable levels.

However it seems that they are now starting to walk away from Jobs’ Mob no longer believing that the price will rise. Fidelity Investments' Contrafund, the largest active shareholder in Apple Inc, cut its stake in the iPad and iPhone maker by a further nine percent in April after expressing concern about heightened competition from rivals.

Contrafund is run by portfolio manager Will Danoff. It owned more than 9.2 million shares of Apple at the end of April. Danoff already cut his stake by 12 percent during the first quarter so this means that he has dumped a quarter of them. Contrafund is still the largest active shareholder in Apple. Only a Vanguard Group index fund owns more shares.

Apple shares are worth $449.73 on Friday well below the high of $705.07, reached last September and a fraction of the $1000 Wall Street predicted they would be. Danoff recently said investors continue to express concern about Apple's decreasing profit margins and increasing competition from device makers including Samsung.

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