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Apple’s Q4 tumble was driven by big hedge funds

Apple Stock Decline

Apple’s (AAPL) share price plummeted from record highs in the fourth quarter last year as the company’s unprecedented growth began to show signs of an imminent slowdown. Investor sentiment seemed to sour across the board but not surprisingly, it turns out big hedge funds were behind much of the trading that sent Apple’s stock spiraling downward.

Reuters picked through disclosure documents filed with regulators on Thursday and discovered that large funds including Omega Advisors and Farallon Capital dumped billions of dollars worth of Apple shares after the stock hit a record-high $705.07 in late September ahead of the iPhone 5 launch.

Omega offloaded its entire stake of 266,000 shares and Farallon sold 137,000 Apple shares during the fourth quarter. Jana Partners also sold off its entire stake of 143,000 shares during the fourth quarter as Apple’s stock tumbled more than 25%.

Documents filed with the SEC and reviewed by BGR on Thursday also indicate that hedge fund Tiger Global Management dumped 250,000 Apple shares last quarter, reducing its stake from 1.3 million shares to 1.05 million.

The Reuters report notes that Omega and Jana Partners each began accumulating Apple shares in mid-2010 when the stock was trading below $300.

Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.