According to Falk, their investment in Apple came from a compelling growth story: "We had owned
(HPQ - Get Report)
, and basically Apple was so much more compelling, given its drop in [stock] price and everything from [Apple's] iPod to the iPhone to the growth of the Mac market share. We've historically had more of a lean towards
, but it just happened at that time that we thought Apple was better than Hewlett-Packard, so we sold out of Hewlett-Packard and bought Apple."
Now that they've seen impressive returns from Apple though, Falk says they'll likely take their gains and put money back in HP.
Another good tech buy for the group was
. The company has retuned a solid 20% since they bought into it this year.
WellPoint... Not So Well
Falk says that the group's worst play of the quarter was
. SIM bought the health benefit company at almost $79 per share and watched it tumble to its current mid-$50 range.
"I would say that WellPoint would have to be close to our worst play," recounts Falk. "We had marginally increased our position close to Easter, and a few days later they had an earnings release and fell something like 20%."
"Here's where the importance of having a
portfolio comes into play," Falk says. "We're down almost 31% in WellPoint. Indeed, big-gainers like Apple did a good job of lessening the effect of WellPoint's blow, but it doesn't take the sting out of a losing pick."