Yahoo (YHOO) and Nike (NKE) were the largest stock purchases made by hedge fund managers in the second quarter, while Apple (AAPL) and Netflix (NFLX) were the top sales, says an analysis by FactSet Research.
The top 50 hedge funds sold $2 billion worth of Netflix stock in Q2, more than any other company, says FactSet. The selling was led by Viking Global Investors, which reduced its stake by 22%, and Tiger Global, which exited its 4.2% stake worth $1.6 billion. Netflix stock fell 10.5% in Q2, but is up roughly 5% this quarter.
Netflix stock dipped 0.8% at 95.18 in the stock market today, hovering just above its 50-day moving average.
Apple was stock sold the second-most by hedge funds last quarter, after being the top sale in Q1. FactSet said the top 50 hedge funds reduced their position in Apple by 40%, or $1.8 billion. Tiger Global, Greenlight Capital and Adage Capital each cut their stake in Apple. Apple stock fell 12.3% is Q3 but is up 13% since then. Apple stock eased 0.75% Wednesday to end at 108.03.
IBD’S Take: Apple is battling to retake its short-term, 10-day line. The 10-day line is an area that swing traders and other short-term investors focus on. Apple had been running above its 10-day line since a late-July gap up, but on Monday began struggling to stay above the line. You can learn more about How To Find and Evaluate Stocks at IBD University.
Microsoft (MSFT) was the most widely held stock by the top 50 hedge funds for the second consecutive quarter, says FactSet. Facebook (FB) and Allergan (AGN) were two other widely held stocks, with 25 out of the top 50 hedge funds holding a position in each.
FactSet said the top 50 hedge funds added a total of $1.4 billion worth of Yahoo stock in Q2, more than any other company. The buying was led by TCI Fund Management, which increased its ownership stake to 7.5% from 1.5% a quarter ago. The Yahoo purchases were made as rumors circulated of several companies being interested in acquiring the core operating business of Yahoo. A month ago, Verizon Communications (VZ) confirmed it would acquire Yahoo for $4.83 billion.
Yahoo stock rose 2% in Q2 and is up 13% this quarter. Besides its core internet business, Yahoo owns big stakes in China’s Alibaba Group (BABA) and in Yahoo Japan, which is traded on the Tokyo exchange. Yahoo stock fell 1.6% to 41.91 Wednesday.
FactSet noted that Yahoo is part of the Software & Services industry group in the S&P 500, which was the largest aggregate purchase of any industry group during Q2. Within the group, the top 50 hedge funds also bought stock in Facebook and Activision Blizzard (ATVI), which were the fifth- and eighth-largest aggregate purchases, respectively.
Nike was the second largest purchase in Q2. The top 50 hedge funds added $1.3 billion worth of Nike stock to the aggregate hedge fund portfolio. Nike stock fell 10.2% in Q2, but is up 9% since then. Nike stock rose 1% to 60.22 Wednesday.
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