Choice Equities Capital Management, a hedge fund manager, released its second-quarter 2023 investor letter recently. You can view it here. In the second quarter, the fund returned +8.0% on a net basis which brought the year-to-date net performance to +9.0%. This compares to Russell 2000’s +5.2% gain for Q2 and +8.1% year-to-date. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Choice Equities Capital Management highlighted stocks like Apple Inc. (NASDAQ:AAPL) in the second quarter 2023 investor letter. Headquartered in Cupertino, California, Apple Inc. (NASDAQ:AAPL) is a multinational technology company that designs and manufactures smartphones, personal computers, tablets, wearables, and accessories. On August 1, 2023, Apple Inc. (NASDAQ:AAPL) stock closed at $195.60 per share. One-month return of Apple Inc. (NASDAQ:AAPL) was 2.23%, and its shares gained 17.74% of their value over the last 52 weeks. Apple Inc. (NASDAQ:AAPL) has a market capitalization of $3.077 trillion.
Choice Equities Capital Management made the following comment about Apple Inc. (NASDAQ:AAPL) in its second quarter 2023 investor letter:
“Dramatic valuation differences across market cap sizes continue. This has been the case for some time now. Perhaps I have spent too much time discussing these dichotomies, as generally, I feel like if we pick the right stocks and manage market exposures thoughtfully, our equities- oriented portfolio will prosper across various market cycles. However, when markets become as lopsided as they have lately, I feel additional discussion on the market environment is worthwhile, if only to help highlight the opportunities that are available and the likely path forward. I expect future discussions to soon be focused again on our moderately concentrated portfolio. But for now, let’s take one last in-depth look at how far reaching these valuation dichotomies have again become.(Please note: charts that accompany the following can be found in the Appendix.)
Take Apple Inc. (NASDAQ:AAPL) for example. It is the largest stock by market cap, and fairly considered one of the best companies in the world. The company has been extraordinarily successful and improved standards of living everywhere in the process with their ubiquitous products. Along the way, shareholders have been richly rewarded, with shares increasing nearly fourteen-fold over the last ten years while generating an annualized total shareholder return of 31%, including dividends.
On the back of another big quarter for large cap tech, it is now the first stock to surpass the $3T market cap threshold. This makes its weighting in the ~$37T market cap of the S&P 500, ~8%. It also means this one stock’s market cap is larger than that of the entire ~$2.98T market cap of the Russell 2000 index, the first time in history a single stock has outweighed the Russell 2000 – aside from two brief days in September 2020 when Apple’s market cap then accomplished the same…” (Click here to read the full text)
Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 131 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of first quarter which was 135 in the previous quarter.
We discussed Apple Inc. (NASDAQ:AAPL) in another article and shared the list of biggest green tech companies in the world. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
