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Here’s Why Stewart Asset Managment Sold its Apple (AAPL) Shares

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Jose Karlo Mari Tottoc
·3 min read
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Stewart Asset Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be seen here. A net return of 1.38% was reported by the fund for the Q1 of 2021, below its S&P 500 benchmark that delivered a 6.17% return for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Stewart Asset Management, in their 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 $2.25 trillion market capitalization. Since the beginning of the year, AAPL delivered a 1.36% return, extending its 12-month gains to 90.24%. As of April 15, 2021, the stock closed at $134.50 per share.

Here is what Stewart Asset Management has to say about Apple Inc. in their Q1 2021 investor letter:

"To fund a new investment, we sold the portfolio’s holding of Apple. We did so reluctantly. Apple is a superb global franchise with a loyal following and growing service businesses that are creating a recurring revenue stream. The shares however have appreciated rapidly in the last two years. The valuation is now well ahead of our estimates for earnings growth, which we believe will trend below the 11% or so threshold we look for in our investments."

Smartphones with the Best Cameras 2015
Smartphones with the Best Cameras 2015

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 5.79% 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.

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