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Apple’s News Could Hit Fund Shareholders, Too

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Mutual fund shareholders who read of Steve Jobs’ resignation with merely academic interest might want to take a closer look at their portfolios. Apple (AAPL) shares fell immediately on the news – which, in turn, will have a ripple effect on the thousands of mutual funds that hold the stock, as the Wall Street Journal pointed out in January when Jobs went on indefinite leave:

“Few stocks are as widely held in regular mutual funds as well as in hedge funds. Few affect the performance of so many retirement portfolios. This is especially unusual because Apple is such a volatile growth stock. In recent years it’s fallen by two-thirds and it’s quadrupled. Most of the other shares that crop up in every portfolio are dull ones like Exxon Mobil (XOM) or Procter & Gamble (PG) or Johnson & Johnson (JNJ).”

So mutual fund shareholders might be surprised to know how much Apple stock they (indirectly) own. According to an analysis by Standard & Poor’s research team, 26% of all domestic and global stock fund share classes have Apple as one of their top 10 holdings. As of funds’ most recent filings, that includes:

  • Fidelity Contrafund (FCNTX), which had 6.8% of its $78.1 billion invested in Apple;
  • T. Rowe Price Growth Stock fund (PRGFX), 7.2% of $26.7 billion;
  • Putnam Voyager (PVOYX), 7.3% of $78.1 billion;
  • Morgan Stanley Focus Growth fund (AMOAX), 9.99% of $1.8 billion.

Index funds hold Apple too, from broad market indexes (Apple is the second-biggest U.S. company by market valuation) to tech sector trackers. Funds that track the Standard & Poor’s 500-stock index, like the $105 billion Vanguard 500 Index Investor fund (VFINX), have only 2%-3% of assets allocated to Apple – not enough to feel a real shock even if shares fall much more sharply than they have so far. But funds tied to the more tech-heavy Nasdaq have more at stake: The $20.7 billion PowerShares QQQ ETF (QQQ), which tracks the Nasdaq-100 index, recently had 12.11% of assets in the stock.

As the WSJ put it in January:  “If your U.S. stock portfolio is up over the past few years, and especially last year, Apple’s remarkable performance probably has something to do with it.”

A tool like Morningstar’s Instant X-Ray can tell you how much Apple you hold via your funds. If it’s a more substantial fraction than you’re comfortable with, it may mean you’re not as well-diversified as you thought, but that’s a different issue. Holding Apple shares themselves isn’t necessarily reason for panic. So far, stock analysts and fund managers are saying the investment case for the company remains strong. The managers of the Henderson Global Technology fund (HFGAX), which has about 7.5% of its $334.7 million portfolio invested in Apple, expressed that view in a statement this morning. “There’s no doubt the influence of Jobs has been hugely important in making Apple the company it is today,” said managers Stuart O’Gorman and Ian Warmerdam, but “we believe Apple will continue its onward march.”

Related: Are Apple Shares Still Worth Holding?


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    • “JCR Licklider is given credit as Father of the Internet”…Something else that I’ve often heard and read and rellay can’t find any reason to quibble with that judgement either…Vinton Cerf though sure garnered a lot of the praise (deservedly so) for the part he played in it…Licklider was a humble man too… I think of him as one of the first credible futurist too…I’ve often wondered if Kleinrock hadn’t come up with packet switching would there have been an internet?I’ve since come to the conclusion there probably would’ve been one at work hard today but for it to come around it might have possibly taken a bit longer…

    • First off, I’m going to say something that I am sure semoone else writing a review for this game has already said, This is NOT a game for the faint of heart If there were a definition for, violent or controversial this would be it. You are a white [man] known as Mr. Peepshell, or the, Postal Dude, whom lives in a trailer behind semoone’s house and your soul task throughout the game is to run around a city commiting tasks that you would think to be simple for your . wife. Freedom-wise, this game outdoes any of its predecessors tenfold. You may go into ANY building, interact with ANYONE you see on screen, and do virtually anything you want, from sticking a cat on the barrel of your gun to use it as a silencer, to urinating all over the place in some poor fool’s house. This game pushes new boundaries in ignoring what the rest of the world thinks. You can pour gasoline on semoone, light a match, throw it on them and they will be engulfed in a ball of flame and slowly burn to a charred corpse, crawling on the ground crying desperately for help. Even kick bodies and watch them flop around realistically, splattering a grotesque decal of blood on the wall. Walk into convenience stores and kick merchandise into people’s faces, only to soon be attacked by enraged policeman. Something I may need to mention is that this game is extremely racist. The convenience store is controlled by a bunch of arab women who attack you if you decide to go into the employees only section. Gay dance clubs are strewn throughout with in which you can interact with some, let’s just say, interesting NPC’s. Anything you would not want your innocent little darling of a child to see is thrown in this game tenfold; do not expect anything wholesome. Even the kindest of people can have their heads blown off by, well, you. Religious references are intact and mocked horribly. (For example, you go to a church to confess your sins in one of the missions and a bunch of psychotics .burst through the door, and before you know it, the priests whip out shotguns and say they must, Do it all for the glory of God. I suppose you are wondering why I enjoy this game. Simple answer; I’m sick. That and the fact you can run around with virtually no restrictions and fulfill all the dirty little thoughts that go through your head. If you have a strong stomach and a gamer’s desire for, No limits, buy this game. Otherwise, get over it.

    • I agree with Larry, I believe Jobs’ departure was holding the stock back because it was always hanging out there, everyone knew it. Even though I’m sad to see Steve step down as CEO, as an investor I’m glad to see Apple put this behind them, now Apple can truly be judged on their performance without the “But what about when Steve leaves?” question getting in the mix.

      And yes, Apple is slightly down, but still ahead of the DOW, NASDAQ, and Tech Sector indexes for the day. Far better than I expected, I’m glad people aren’t freaking out about it. Most of the time I expect investors to act irrationally (especially when it comes to AAPL), for once it seems they get it.

    • Apple is currently down .5 percent, less than the rest of the market. Jobs’ leaving was baked in, and more than likely the uncertainty about when he might leave held the stock down more than his presence helped it.

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