As Warren Buffett sold Apple's stock, these funds bought in

By Emily Bary

Managers at Third Point and Soros Fund Management likely saw success with recent bets on Apple

While Warren Buffett's Berkshire Hathaway Inc. made headlines for cutting its Apple Inc. stake in half during the second quarter, other investment managers saw appeal in Apple shares, taking up new positions during the period.

For both sides, the moves could look smart, with that determination depending on entry points and investment objectives.

Berkshire (BRK.A) has been a longtime Apple (AAPL) investor, having initiated a stake back in the first quarter of 2016. Despite reducing its holdings recently, Berkshire is a long-term investor and still holds 396.2 million Apple shares, enough to make it one of the consumer-electronics company's largest shareholders. That position was worth $83.5 billion at the end of June.

Read: Why Warren Buffett's Berkshire likely saw shine in Ulta's beaten-down stock

Shares of Apple have gained 714% since the end of March 2016, trouncing the S&P 500's 165% gain over that span, though Buffett also added to his Apple position in the years since the initial investment. It's unclear when exactly in the second quarter Berkshire's Apple selling took place, but even if Buffett missed the big rally in Apple shares that took place after mid-April, Apple's stock has been a winning bet for Buffett over the years.

Berkshire's Apple sale also may not have been entirely about Apple, as Buffett has generally been growing its cash pile in what seems a broader statement on the market. The value of Berkshire's portfolio fell by $51.8 billion in the second quarter, the company's latest 13-F filing showed, as the company pruned holdings.

For managers at Soros Fund Management and Third Point LLC, which both initiated Apple positions in the second quarter, investment objectives may have been different, and depending on when those managers bought in, the Apple bets have likely paid off handsomely so far.

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Apple shares are up 34% from their 2024 low - hit in mid-April - though the 13-F filings from Soros and Third Point don't indicate exactly when those managers began amassing their positions, which for Soros was worth $179 million as of the end of the June quarter and for Third Point was worth $411 million.

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-Emily Bary

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08-15-24 0949ET

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