Apple Is the World’s Largest Hedge Fund, Too

A nondescript office manages the company’s huge cash hoard

   

Heard of Braeburn Capital? Probably not. But it’s no less noteworthy — Braeburn is the world’s largest hedge fund, with about $117.2 billion in assets under management.

It’s also, as Zero Hedge points out, a wholly owned subsidiary of Apple (NASDAQ:AAPL).

Braeburn Capital is located in Reno, Nev., sporting an office that’s modest and forgettable. Still, it’s a center of immense financial power.

Most likely, Braeburn Capital wanted to locate the office in Reno for tax purposes — after all, a few percentage points of savings can add up! But it’s also important to maintain the secrecy of its investment approach, and Reno certainly is out of the spotlight.

As for Braeburn Capital itself — it likely will only get bigger and bigger, considering Apple generates about $15 billion in cash per quarter. Braeburn takes a conservative approach to cash management, but in light of its scale, the returns are still significant. Since 2005, the earnings from interest and dividends have come to $2.5 billion.

Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2012/10/apple-is-the-worlds-largest-hedge-fund-too/.

©2014 InvestorPlace Media, LLC

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