This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks Hedge Funds Hate -- But Should You?


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Last up is Apple (AAPL - Get Report), the stock that's probably the most surprising name to make an appearance on hedge funds' hate list. But yes, funds sold off shares of Apple en masse in the second quarter, dropping close to 2 million shares from their portfolios. That 2 million shares may not seem like much at first, but remember that Apple is a $700 stock as of yesterday -- those 2 million shares have a huge dollar value.

>>5 Big Stock Charts You've Got to See to Believe

Apple's selling is surprising because the firm looks so strong right now. In spite of that $700 price tag and a 73% rally since the first trading day of 2012, Apple's valuation metrics are hardly out of whack. Its P/E currently sits at 16.5, which means that investors are paying a much lower premium for Apple (and its $117 billion in cash and investments) than they're paying for stocks like Google (GOOG), Texas Instruments (TXN), or Qualcomm (QCOM).

While critics have lampooned the iPhone 5's apparent lack of new features, the new record sales it's already earned make those opinions matter a whole lot less. Apple's massive institutional ownership is probably the biggest catalyst for hedge funds' selling in the second quarter. With shares up so much, fund managers probably wanted to pare down their concentration in the Cupertino, Calif.-based company.

I still like Apple right now. Investors shouldn't follow hedge funds' selling in this name.

To see these stocks in action, check out the at Stocks Fund Managers Hate Q2 portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
AAPL $93.49 -1.40%
C $46.74 0.02%
DLPH $74.51 -0.64%
JPM $63.41 -0.30%
IRE $14.54 0.00%


Chart of I:DJI
DOW 17,769.84 -60.92 -0.34%
S&P 500 2,065.48 -10.33 -0.50%
NASDAQ 4,776.4730 -28.8180 -0.60%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs