Hedge funds are seeking a new Apple, and Facebook is a likely contender.
For years, Apple outperformed the stock market and buoyed hedge-fund returns so much that investors gushed about the “Apple Effect.” But as the company’s growth has slowed, investors are hunting for a new killer tech stock.
Many of those firms have been scooping up Facebook shares this year, and the stock has doubled since January amid faster-than-expected growth of its advertising revenue. Twelve of the social network’s largest 100 shareholders are hedge funds, according to the research firm Hedgemony, which compiles SEC data, up from seven at the end of June. That includes big names like Lone Pine Capital. Nine of Apple’s top 100 shareholders are hedge funds, a number that has changed little this year.