updated 08:40 am EDT, Thu April 6, 2006
Braeburn manages cash
Apple has setup a new company to manage its swelling cash reserves and short term investments. BusinessWeek reports that Apple has incorporated Braeburn Capital, an asset management company based in Reno, Nevada and has placed 'help wanted' ads, looking for financial officers to help the company grow its cash. The company, which is named for a variety of apple that's uniquely sweet and tart, will be a vehicle for managing Apple's investment portfolio and wil help the company avoid certain California state taxes, according to the report. "Apple's cash reserve has nearly doubled over the last two years. At the end of 2005, Apple had $8.7 billion in cash and short term investments, about 15 percent of its market capitalization. That's up 91 percent, from $4.6 billion, at the end of 2003. And it compares with much bigger rivals like Dell, which reported $9 billion in cash and short-term investments for the quarter ended February."
An Apple spokesman told BusinessWeek that Apple's wholly-owned subidiary, Braeburn, will function as a regional treasury office, on par with existing offices in Cupertino, Singapore, and Cork, Ireland, but declined to comment on the tax implications or elaborate on Braeburn's investment plans.