Stay Away From Apple: Worst Call Made By Big Money Managers in 2014

People who don’t believe in superior performance of hedge-funds or for that matter any managed funds can perhaps add one more positive point to their argument now. One of the star performers among large caps and also among technology stocks this year Apple Inc. AAPL was predicted as a stock to stay away from by most big money managers in the beginning of 2014.

Bloomberg’s Betty Liu and Matt Miller recently discussed on how most big money managers got their Apple call wrong this year.

“Apple was one of the stock that big money managers said to stay away from, but look if you would have stayed away from Apple, you would have lost out on a 37% return in a market that has only given you what- single digits, this year. So, that was one of the worst call by money managers,” Liu said.

Bet Against Interest Rates Understandable, But Why Bet Against Apple

“We used to actually point all the time that it [Apple] was worth 10% of the NASDAQ and that any move in Apple would really move the markets […] I think, one of the most interesting wrong way bets was people and it made sense you know, shunning Apple didn’t make any sense, but people who were betting that interest rates would rise really lost out. Why would you bet against apple when all you are trying to do is load up on Apple products personally,” Miller said.

“There was every reason to believe that interest rates would start to rise again, I mean, why would people continue to pile under the safety of US government debt unlike the Apple wrong way bet, which is why you would bet against Apple?,” Miller added.