Smart Money’s Big Bet On An Obscure Apple Supplier
Always cast your line where the big fish swim.
With tens of thousands of potential investment choices, one smart strategy is to follow the smart money — the kind managed by the sort people who seldom guess wrong.
#-ad_banner-#In most instances, that means hedge funds.
These special investments are open only to the (really) rich. This is actually defined by federal law. To qualify, an individual must have a net worth greater than a million bucks, not counting home equity. An individual also needs to have $200,000 in annual income (or household income of greater than $300,000), with a reasonable belief that the income stream will continue.
Hedge funds have professional management. I’m talking about the pinstriped suit crowd that actually run the world; the private jet types who use “weekend” as a verb.
Let’s be very clear, though. Most hedge funds, no matter how lovely their managers’ suits, do not beat the market over time.
That might be one reason why Warren Buffett made a famous $1 million bet that a basket of five hedge funds couldn’t beat the market over ten years. After seven, the latest numbers I saw put Buffett’s (and my) beloved Vanguard 500 Index Admiral (VFIAX) fund up some 63.5% to the hedge funds’ average 19.6% gain during the same period. In this case, the tortoise is likely to beat the hare.
While I think individuals who follow a smart strategy like ours here at Game-Changing Stocks can beat not only the average hedge fund, but also give Uncle Warren a run for his billions, there’s just no doubting that the hedge fund world does produce winners, and sometimes these turn out to be really big winners.
In that rare handful of cases, the fund managers aren’t just pocketing a few million; they’re parking hundreds of millions and even billions in their bank accounts. Of those, a select few beat the street Buffett-style, exceeding the market year after year.
One hedge fund that is constantly mentioned in various “Top Hedge Fund” lists is Glenview Offshore Opportunity. It’s tough to argue with the fund’s recent numbers — $3.3 billion in assets and a 2014 return rate of 24.8%.
As I combed through holding documents recently, I realized that one of the stocks I’ve been recommending to Game-Changing Stocks subscribers is also a new Glenview holding.
At first, this may seem like coincidence, but it’s not.
You see, Glenview caught on to a trend that I’ve been trumpeting to my readers for months now, regarding tech monster Apple, Inc. (Nasdaq: AAPL).
When you step back and take a close look at Apple’s history, a clear pattern emerges. And we believe this pattern is currently repeating itself.
First, Apple selects a specific industry to revolutionize. We’ve seen it with the music and smart phone industries so far.
Next, Apple does perhaps what it does best and creates a groundbreaking and beautiful piece of hardware — like the iPod, iPhone and iPad — to be the delivery system for a game-changer like iTunes.
The tech giant has already begun revolutionizing its next industry. While it already has and will most likely continue to cause shares of AAPL to rise over time, the lion’s share of gains lie with the group of smaller companies supplying Apple with the tools for this revolution.
The stock that both Glenview and my Game-Changing Stocks readers have been privy to is one of those suppliers, Global Payments, Inc (NYSE: GPN).
Since the beginning of 2015, shares of GPN have risen nearly 34%, far outperforming the S&P 500’s roughly 5% gain.
In fact, some of the world’s most powerful institutions are starting to load up on suppliers for Apple’s newest project.
Wells Fargo recently bought a little over 260,000 shares of a different key supplier — upping its stake to more than 600,000 shares.
JP Morgan Chase is also a big investor, holding nearly three million shares of yet another Apple supplier.
As a rule, you should always cast where the big fish swim. And one of the world’s top hedge funds has already caught onto the huge gains in store for these small suppliers.
But I’ve done one better.
I’d like to invite you to check out my report on The Top 5 Apple Suppliers To Buy Now. One stock has gained more than 300% since 2013, while another has more than tripled in 2014, in part because of their relationship with Apple.
But I believe this is just the beginning. Apple is seemingly unstoppable, and these firms are poised to benefit as long as Apple continues to thrive. To find out which companies hold the most promise, simply follow this link.