According to BusinessInsider, big firms which once bet heavily on Apple Inc are now taking a back step from the company.
RBC Capital Markets released a new report and according to it Apple Inc is no longer in the top holdings that overweigh the benchmark funds of Russell 1000 as per the third quarter of the current year.
The equity strategist of RBC Capital Market examined a very broad swath of data, looking at the third quarter stock holdings of the funds- about 751 in number which are actively managed.
These funds were diversified equity funds of the United States which are tracked by the investment management. Morningstar which is a research firm focuses specifically on the large cap names.
At a granular level, the team of strategists which was led by Lori Calvasina extracted data from 158 funds, according to BusinessInsider.
These funds were a benchmark to the value index of Russell 1000. They discovered that the only name that has fallen off that list of funds in the third quarter, which commonly overweighed in terms of position was of Apple Inc.
The strategists also found that about 35 percent of the large cap value funds of Russell 1000 owned Apple and all of them have positions which still overweigh.
Overweight positions can be defined as those positions in a portfolio which are held by the managers in excess in relation to the weight of the securities in the investment portfolio which is underlying.
The equity strategists of the RBC stated that few of the changes that they observed are a reflection of the changing interests amongst the long only investors.
The reduction in the funds of Apple come because of the dismal fourth quarter experienced by the company.
Source: BusinessInsider, Wired Focus