Apple Investors Pay Heed: This Hedge Fund Manger Sold His Entire Stake In The Company Regardless Of It Being 'Reasonably Cheap Stock'

While the reasoning for many investors to buy Apple Inc. AAPL is that it is relatively cheap, Doubleline Capital founder, Jeffrey Gundlach, sold out his position in the company even though he believes in that reasoning.

Gundlach was on CNBC Wednesday to explain the logic behind selling his stake in Apple.

Made Money On Both Sides

"I started getting negative at $600-610 (pre split price), then it went to $700 (pre split price)," Gundlach began. "Then I was pounding the table negative and I said, 'I deeply believe it's going to $425 (pre split price) and of course it did that. It actually kissed $300 (pre split price) handle, high $300 (pre split price). So, we bought it. So, we were out, we bought it at $405 (pre split price) actually and it went up to about $550 (pre split price) and we sold it. So, we are out of it, having made money on both sides of it."

Compounding The Growth: Major Hurdle

He continued, "Apple is reasonably cheap stock, I think, given the P/E and the cash position and all that. Yet one thing that troubles me about companies like that is it's so big. You just wonder how you will be able to compound your growth at that type of size."

Watch : A Disappointment

"And the Apple the watch. I just don't know if that's really going to set the world on fire. I think, it's been a disappointment. But the company generates a lot of cash and so it's cheap. So, I don't like the compounding factor, but it's not an expensive stock, " Gundlach concluded.