We recently compiled a list of the Top 10 Stocks to Buy According to Lee Munder Capital Group. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against the other stocks.
Lee Munder Capital Group Investments, more commonly known as LMCG Investments, LLC, is an independent, employee-owned investment management company. Established in 2000 as Lee Munder Capital Group, it has 25 years of average investment experience and typically deals with alternative investments and wealth management. Specifically, the globally focused investment management firm provides a diverse array of investment strategies tailored to institutional investors, financial advisors, and private clients. The firm specializes in global equity, fixed income, and absolute return or relative value credit strategies. With a client-first approach, LMCG prioritizes aligning its interests with those of its investors, emphasizing transparency and long-term value creation. By leveraging its expertise and disciplined investment approach, the firm aims to deliver strong financial performance and best-in-class investment solutions. Founded and managed by Lee Munder himself, the firm has established a strong reputation in the financial industry.
As of March 2024, LMCG Investments manages discretionary assets totaling approximately $5.5 billion, serving 1,527 clients. The firm reported $1.63 billion in managed 13F securities for the fourth quarter of 2024, with its top 10 holdings making up over 28% of its portfolio. LMCG’s strategic investment approach and diversified portfolio reflect its commitment to delivering strong financial performance and value to its clients.
Munder also established Lee Munder Venture Partners LLC and founded Munder Capital Management. With extensive experience in investment management, Munder has held key positions, including Vice President at Loomis, Sayles & Co. LP. Currently, he serves as Chairman at IC Real Tech, an innovation-driven video technology company. Lee Munder holds an MBA from Wayne State University and an undergraduate degree from Ohio State University. Given this, we will take a look at top 10 stocks in Lee Munder’s portfolio.
Our Methodology
The stocks discussed below were picked from LMCG’s 13F filings for the fourth quarter of 2024. They have been compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To provide readers with a more holistic analysis of each stock, we have included the hedge fund sentiment regarding each company using data from over 900 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds show interest in? The reason is simple: our research has shown that we can outperform the market by imitating the latest top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A wide view of an Apple store, showing the range of products the company offers.
Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders as of Q3: 158
LMCG’s Equity Stake: $71.46 Million
Apple Inc. (NASDAQ:AAPL), based in Cupertino, California, is a global technology leader recognized for its consumer electronics, software, and services. Originally founded in 1976 as Apple Computer Company by Steve Jobs, Steve Wozniak, and Ronald Wayne, the company rebranded to Apple Inc. in 2007 to reflect its expansion beyond computers.
Apple’s product ecosystem includes hardware such as the iPhone, iPad, Apple Watch, Mac, and Apple TV, alongside operating systems like iOS, iPadOS, and macOS. Its software and services portfolio features Apple Pay, iCloud, Apple Music, and Apple TV+. As one of the Big Five U.S. tech giants, Apple has consistently led in market capitalization since 2011. Apple Inc. (NASDAQ:AAPL) is the largest mobile phone and tablet vendor globally, the fourth-largest personal computer manufacturer, and a dominant force in the industry.
As of Q4 2024, the company reportedly faced challenges in China, where iPhone sales declined by 11.1%, bringing revenue in the region down to $18.51 billion – its largest drop since Q1 2024. Apple continues to struggle in the world’s largest smartphone market due to intensified competition from domestic brands like Oppo, Vivo, and Huawei. CEO Tim Cook attributed part of the sales decline to the unavailability of Apple Intelligence, the company’s generative AI feature, in China and other key markets.
Despite these challenges, Apple Inc. (NASDAQ:AAPL) posted revenues of $124.3 billion for the quarter ended December 2024, which was 3.95% up from the revenue of $119.58 billion in the same quarter of the previous year. The revenue crossed the consensus estimates of $124.03 billion for the quarter by a slight 0.22%. Apple reported quarterly earnings of $2.40 per share in Q4, $0.22 more than the EPS for the quarter a year ago. On January 30, 2025, the company announced that its board of directors had declared a quarterly cash dividend of $0.25 per share for the company’s common stock payable on February 13, 2025, to holders of record at the close of business on February 10, 2025.
Tsai Capital stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter:
“We initiated our investment in Apple Inc. (NASDAQ:AAPL) in 2016 and elevated it to a core holding in 2018, the same year the company introduced its redesigned 13-inch and 15-inch MacBook Pro models. Under Tim Cook’s visionary leadership, Apple has consistently redefined innovation in hardware and software.
The September 2024 launch of the iPhone 16, with its groundbreaking AI capabilities, including enhanced image generation tools, marks another inflection point. We believe this transformative device is the foundation for an AI-driven supercycle and could entice approximately 100 million consumers to upgrade, reinforcing Apple’s leadership in the industry.
Today, Apple’s ecosystem spans over two billion active devices, supported by a rapidly-growing base of subscription services. This strategy has helped to turbocharge customer engagement and spending. In the most recent fiscal year, which ended in September 2024, Apple’s high-margin services division accounted for 39.3% of total gross profits, up from 32.8% just two years ago.
Apple’s financial footing remains exceptional, with approximately $50 billion in net cash and marketable securities. Looking ahead, we expect earnings-per-share growth to outpace revenue growth, driven by margin expansion and continued share buybacks.”
Overall AAPL ranks 2nd on our list of Lee Munder Capital Group’s top stock picks. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.