The days just prior to the end of the third quarter now appear like a million years away, and a hundred S&P point away, but they were marked by one notable thing: the price of AAPL hit an all time high just days before the quarter ended. Which is why we read with great interest the quarterly Hedge Fund tracker update by David Kostin, which has been aggregating the popularity of the most prominent hedge fund-beloved names, and which as readers are well aware, has for the past two years been primarily one name: AAPL.
And yet, even with the stock price hitting a lifetime high of over $700/share, which in turn would have assumed even more momentum chasers should have jumped in, June 30 saw the world's most popular hedge fund hotel in history rise by just one tenant for the entire quarter, as the number of Hedge Funds owning the stock, rose to a new record, but by the tiniest of increments: from 230, as of June 30, to 231, on September 30. It is thus safe to say that with barely any incremental holders jumping in when the stock was rising to its all time highs, the recent weakness is only and purely a function of the rising trajectory in hedge fund tenants at Hotel AAPL-fornia finally having been broken, as first one then more holders quietly slip out of the world's biggest hedge fund hotel in the quiet of the night while the receptionist is still taking a bathroom break. The only question is how many. That is an answer we will have in mid-February when the December 13Fs are released.
Total HF holders:
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http://www.zerohedge.com/news/2012-11-19/september-30-hedge-fund-hotel-aapl-fornia-added-one-more-guest
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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