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Hedge Funds, ETFs, Central Banks Suffer Billions In Losses On Apple

It wasn’t that long ago that Apple was the most beloved stock by the hedge fund community, and although in recent months the company’s popularity faded somewhat among the 2 and 20 crowd it is still one of the most popular names among the professional investing community. Which on a day that saw AAPL stock tumble as much as 10% is clearly bad news.

As Bloomberg notes, eight hedge funds that own large stakes in Apple have seen the value of their holdings plunge about $2.13 billion since the company cut its revenue outlook, with AQR Capital Management suffering some of the biggest losses as it saw its holdings decline by about $732 million on Thursday. The firm held 8.8 million shares as of Sept. 30, according to data compiled by Bloomberg.

Adage Capital, which has Apple as the firm’s biggest holding as of Sept 30, was hit by a $500 million loss assuming it has not changed its holdings since Sept 30 when it held about 6 million shares valued at $1.35 billion.

Biggest Losers

Biggest Losers

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Separately, Bloomberg also observes that AAPL’s price plunge will also have a significant impact on exchange-traded funds. The company is held by 266 U.S. ETFs, representing total allocations of $46 billion, or more than 1% of all U.S. ETF assets, and is among the top two holdings of four of the five largest ETFs.

As Eric Balchunas writes, the S&P 500 ETF Trust (SPY), for example, owns the most Apple of any ETF with $8.1 billion, but that represents only a 3.3% weighting. The Invesco QQQ Trust Series 1 (QQQ) holds $5.8 billion worth, but has Apple at a 10% weighting. As a result, QQQ feels Apple’s moves more acutely, despite owning less in absolute terms

Swiss National Bank

And then there is the Swiss National Bank, which as of Sept 30 held 15.8 million shares of AAPL stock.

Assuming no changes to its holdings, the central bank has suffered nearly $1.4 billion in losses on its AAPL stake alone in just the last three months.

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Tyler Durden
ZeroHedges' Tyler Durden is the hero of Fight Club, the 1999 movie based on Chuck Palahniuk's novel that reflected Chuck's experience in the Cacophony Society Quote: "Goddamn it, an entire generation pumping gas, waiting tables, slaves with white collars. Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don’t need. We’re the middle children of history, man. No purpose or place. We have no Great War. No Great Depression. Our Great War’s a spiritual war… our Great Depression is our lives. We’ve all been raised on television to believe that one day we’d all be millionaires, and movie gods, and rock stars. But we won’t. And we’re slowly learning that fact. And we’re very, very pissed off." --> see more about Tyler on snbchf
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