Apple’s largest shareholder the equity mutual fund Fidelity Contrafund Investment has cut its stake in the Cupertino-based Company by 10 Percent of the initial fund.
Within the first months of the current year, the Fidelity Contrafund managed by portfolio manger Will Danoff, has reduced its stake within the Fruit Company with more than 10 percent. This means that the $92 billion fund offered by the Fidelity Contrafund Investment on Apple shares has dropped from 11.56 million Apple shares to 10.43 million shares, which mean only $4.6 billion worth at the end of February.
These numbers represent the current status of the Fruit Company, and precisely the end of February 2013 and the end of 2012, December. The cutback of the Apple’s largest shareholder has occurred pretty unexpected and with a greater effect for the Cupertino-based Company.
The fact that the largest active Apple shareholder has cut its stake in the company by 10 percent reflects notable consequences for the Fruit Company. It has placed Apple on the second place in the top U.S. based mutual and hedge fund holding. According to a recent study, Google now represents the largest fund holding in the U.S. with 5.8 percent of the fund’s net assets while Apple, the second position within this top owns only 5.2 percent of the fund’s net assets. If Apple takes these numbers for granted, this means a substantial step-back for the towering tech giant.
However, Apple shares were off more than 2 percent today, which represent a continuous decrease for the Cupertino-based company since in the past six months, the company shares recorded a fall of 33 percent, more precisely since the release of the iPhone 5. This fact has convinced some investors to claim higher dividends financed from the Apple’s $137 billion cash reserves.
With all these competitive products and rivals on the technology market, Apple finds it hard to compete for the first place on the Smartphone field. Now, Android, the global market share leader has become a fearful rival for the Fruit Company, which seems to have lost its own guidance.
Analysts, market watchers, Apple fans and people all over the world hardly expect Apple’s new move, in what concerns the next generation of iPad, the cheaper iPhone, a full-fledged television set or the well-debatable smart wristwatch. If all goes as planned, these future products will surely place Apple on the first place in the holding leader top once again.