Concerns surrounding Apple's profitability have prompted another big investor to sell his stake in the company. This time, hedge fund billionaire David Tepper is the investor to have sold all his Apple shares, according to a recent report.
Apple recently announced its first ever revenue drop since 2003.
Business Insider UK explains that David Tepper has indeed dumped Apple, according to a filing with the SEC (via MacRumors). Before now, Tepper owned 1.26 million shares in Apple, and these were apparently last valued at some $133 million. However, the recent dip in Apple shares along with Apple's less impressive most recent earnings call has prompted Tepper to sell all. This last call, as you'll probably remember, saw Apple announce its first ever revenue drop in since 2003.
This is a stunning turnaround, as hedge funds have long loved Apple stock. As of August 2015, 146 of the 833 hedge funds tracked by Goldman Sachs had the company as one of their largest positions. This earned the iPhone maker the No. 2 spot on Goldman's list of stocks “most loved” by hedge funds.
Indeed, before now Carl Icahn, another big Apple investor, sold his shares in the company. Despite praising CEO Tim Cook and the company's overall efforts, Icahn stated that “you worry a little bit – and maybe more than a little – about China's attitude” towards the Cupertino company. He later added that China's government could make it difficult for Apple to succeed in the company: something we recently saw when iTunes Movies and the iBookstore were shut down in the country.
Tepper, it seems, is turning his attention towards Facebook and the Bank of America, in which he's purchased several million shares. His position in Apple, however, is indeed over – at least for now.