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If You Own Apple (AAPL) Stock, Should You Sell It Now?

If you are looking for the best ideas for your portfolio you may want to consider some of Wedgewood Partners top stock picks. Wedgewood Partners, an investment management firm, reduced its exposure to Apple Inc. (NASDAQ:AAPL) stock. In its Q4 2019 investor letter the firm discussed its investment thesis on Apple Inc. (NASDAQ:AAPL) stock. Apple Inc. (NASDAQ:AAPL) is a technology company based in California. The stock is up 11.6% since the Wedgewood Partners pitch in January 2020.

On January 13, 2020, Wedgewood Partners had released its Q4 2019 Investor Letter. Wedgewood said that Apple Inc. (NASDAQ:AAPL) was a top contributor to its performance during the fourth quarter of 2019. Apple Inc. (NASDAQ:AAPL) stock positively impacted Wedgewood’s return by 2.46% in the fourth quarter of 2019.

Meanwhile, the upcoming next-generation 5G product cycle is expected to boost Apple's sales and earnings. As a result, there is a possibility that Apple Inc. (NASDAQ:AAPL) stock could continue to rise.

For the quarter ended December 31st, 2019, Wedgewood Partners fund recorded a return of 9.57%, compared to 10.62% of  Russell 1000 Growth Index and 9.07% of S&P 500 Index. This brings its 2019 full-year return to 31.96%, compared to 36.39% of  Russell 1000 Growth Index and 31.49% of S&P 500 Index.

Let’s take a look at comments made by Wedgewood about Apple Inc. (NASDAQ:AAPL) in the letter.

"Apple reported better growth than investors were expecting, as the Company’s foreignexchange-neutral revenues in China recovered to positive growth. Apple’s shares finished substantially higher for the year, driven by earnings multiple expansion we believe to be related to expectations for the Company’s upcoming next-generation 5G product cycle. We trimmed our outsized Apple positions in order to fund new portfolio holdings, bringing our weighting to around 9%. Remarkably, the Russell 1000 Growth Index consists of over 500 holdings yet carries a weighting in Apple at over 8.5% (and about 4.5% in the S&P 500)."

In Q1 2020, the number of bullish hedge fund positions on Apple Inc. (NASDAQ:AAPL) stock increased by about 3% from the previous quarter (see the chart here). Our calculations showed that Apple Inc. (NASDAQ:AAPL) is ranked #10 among the 30 most popular stocks among hedge funds.

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