View the article online at http://citywire.co.uk/wealth-manager/article/a723669
Polar’s Rogoff: why Apple is a ‘genuine special situation’
by Robert St George on Dec 10, 2013 at 10:50
Rogoff characterised Apple as ‘a genuine special situation’, noting that it was simultaneously now his largest holding and his second largest underweight. The company accounts for 7% of his portfolio, a stake worth £42 million.
‘Although we believe that Apple’s best years of growth are behind it, the company appears to understand the pitfalls involved with chasing incremental growth, evidenced by the higher than expected price point of its low-end handset,’ Rogoff explained.
‘As such, Apple may yet defy the so-called innovator’s dilemma as it manages itself along the lines of other mass affluent brands such as Audi or Coach, a view well supported by the recent hire of the Burberry chief executive officer.’
Rogoff added that Apple’s huge cash pile, equivalent to around a third of its market capitalisation, created a ‘more attractive risk-reward for Apple going forwards’.
In the six months to 31 October Rogoff’s fund returned 12.6% on a net asset basis and 17.1% by share price, compared with 8.9% from its benchmark Dow Jones World Technology index and 7.7% from the S&P 500 through the same period.
News sponsored by:
Today's top headlines
The Citywire guide to investment trusts
Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.
More about this:
Look up the investment trusts
Look up the fund managers
More from us
- Tuesday Papers: Apple reports Q3 profits down 5%
- Apple dives as top four investment banks slash ratings
On the road
J.P. Morgan Elect on investment growth, income and cash. More information on J.P. Morgan investment trusts.
by David Campbell on Mar 11, 2014 at 08:10