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AAPL Stock: 101.79 ( + 0.21 )

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Investment manager Heebner dumps AAPL stock

updated 07:10 pm EST, Mon November 15, 2010

Also divests of HP, SanDisk and chipmakers

Famous investment fund manager Ken Heebner, who scored big in the early part of this decade by betting against technology stocks ahead of their fall, has divested himself of nearly all his holdings of Apple and HP stock, along with SanDisk and lesser-known semiconductor makers Avago and Micron Technology, SEC filings show. No reason for the sell-off has been publicly announced, but Heebner's move -- which actually happened near the end of last quarter -- was revealed on Friday, sparking a sudden three-percent drop in AAPL. Hewlett-Packard's stock also suffered a similar dip.

Apple's stock had been trading at around $316 before the news, which along with other normal economic factors helped move the stock down to below $306 before moving back up slightly, finishing Friday at $308.03. At the final bell on Monday the stock had lost a further 99 cents, closing at $307.04.

Heebner still has 110,000 shares of Apple, but sold 1.04 million shares (about 90 percent of his holdings). The exact date and selling price of Heebner's stake in Apple is not known, but the stock has risen substantially over the past two months; in mid-September the stock was selling around $265 per share.

Heebner's Capital Growth Management fund is ranked one of the top-performing funds of the last 10 years, based largely on his prescient move to divest technology holdings earlier this decade, much of which he has since bought back. Overall, the largest portion of his investments -- the CGM Focus Fund -- has averaged an 18 percent return over the past 10 years, making it one of the top performers. The fund did suffer a 48 percent loss in 2008, but rebounded in 2009 with a 35 percent gain, and so far this year is averaging a 12 percent return.

Heebner is known for fast turnover and sudden changes of direction, but given his overall performance his investment moves are watched very closely. So far this quarter, he is known to have increased his stake in Southwest Airlines and Priceline.com among other companies.




by MacNN Staff

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Comments

  1. SockRolid

    Joined: Dec 1969

    +15

    Taking a decent profit

    Good for Mr. Heebner. He bought AAPL years ago, rode the big wave, and is reaping the profits. We should all be so lucky.

  1. iggyfan66

    Joined: Dec 1969

    -2

    Good timing

    Could this be the beginning of a big downward slide? I can't imagine it's stock going much higher, maybe he was tired of no dividends too?

  1. pairof9s

    Joined: Dec 1969

    +7

    Worked well for me

    I bought my measly couple of hundred shares @ $16.75 in 2001, watched them split in 2005 and now sit at over $300/share. No other shares I own(ed) have returned that great of a percentage growth & profit.

    I'd say anyone wanting to sell Apple stock that came as late as last winter, is entitled to a hefty little profit on their investment.

    Nothing wrong in that with the holiday shopping season approaching!!

    /

  1. mytdave

    Joined: Dec 1969

    +2

    peak

    I think he's maximizing his profits. Simple, nothing wrong with that. The companies of the shares he sold aren't going anywhere, but I'm betting all these companies' stocks are not going to appreciate much more or not at all. Here's the thing -

    For Apple: Apple shot itself in the foot by dropping the XServe - the backbone that supports the Mac platform, which in turn supports the iDevice platform. No more end-to-end solution, so enterprise has no support structure to deploy any Apple products now. From the social side, Steve isn't going to be around forever.

    For HP: They just can't seem to get a grip on the portable market at all. Hopefully they'll pull some magic with WebOS, but the evidence isn't looking too good right now. From the social side, they committed hari kari with their executive musical chair routine. Not too long ago they hired the wrong person (Fiorina), and recently they got rid of the wrong person (Hurd). The board sure isn't making very good decisions.

    For SanDisk: What do they even make anymore that I would want to buy? They had some cool flash based products in times past, but the current products are so lackluster - they went cheap-o. It's most unfortunate.

    For the others: I'm not sure about the other companies, but Micron has just kind of been getting by for quite some time, no spectacular performance in a number of years.

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