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Is Apple Inc. (AAPL) A Smart Long-Term Buy?

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·3 min read
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Distillate Capital, an investment management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. Distillate Capital’s U.S. FSV strategy outperformed the S&P 500 Index by just over 3 percentage points in the first quarter of 2021and lagged the Russell 1000 Value ETF benchmark by around 2%. Distillate Capital's International strategy trailed its MSCI ACWI ex-US benchmark by just under 2% in the quarter following substantial outperformance in 2020 You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Distillate Capital, in its Q1 2021 investor letter, mentioned Apple Inc. (NASDAQ: AAPL), and shared their insights on the company. Apple Inc. is a Cupertino, California-based technology company that currently has a $2.17 trillion market capitalization. Since the beginning of the year, AAPL delivered a -1.87% return, while its 12-month gains are up by 67.94%. As of May 07, 2021, the stock closed at $130.21 per share.

Here is what Distillate Capital has to say about Apple Inc. in its Q1 2021 investor letter:

"Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio."

Apple
Apple

brandon-romanchuk-NOFyRmSQfUQ-unsplash

Our calculations show that Apple Inc. (NASDAQ: AAPL) ranks 10th in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Apple Inc. was in 146 hedge fund portfolios compared to 134 funds in the third quarter. AAPL delivered a -4.79% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.