This central bank is about to lose $60 million thanks to Apple’s big miss

[psycopk]

Pain of lackluster Apple earnings could spread to Switzerland

AFP/Getty Images

iPhone sales declined for the first time ever in the most recent quarter.

By

SaraSjolin

Markets reporter

 

When Apple stumbles, it’s not the only one to get bruises. The pain from Tuesday’s disappointing earnings looks set to spread world-wide — and in particular to the Swiss National Bank, one of the company’s largest shareholders.

Unlike the U.S. Federal Reserve, the Swiss central bank is an active investor in all sorts of assets, from stocks to bonds and currencies. And in 2015, it loaded up on Apple AAPL, -6.09% APC, -6.46%  shares, during a slump for the stock.

It jumped in so deep, in fact, that last year it doubled its holding in the tech giant. As of the end of 2015, the SNB owned 10.4 million Apple shares, valued at just over $1 billion — increasingly tying its investment fate to the performance of the iPhone maker.

Zero Hedge, Swiss National Bank

 

 

 

That would have been a stellar move back in 2014, when Apple shares surged 38%. This week, though, it could be setting the central bank up for a battering on the stock market.

Shares of Apple slumped 6% in Wednesday’ trade, after a disappointing earnings report. That means a hefty $60 million has been wiped off the value of SNB’s Apple holdings, if the losses translate into the market open.

“The SNB adopts a passive approach in its equity investments, replicating broad market indices of advanced and emerging economies. We do therefore not comment on our holdings of stocks,” a representative from the bank said in emailed comments.

 

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The $60 million figure is assuming the central bank’s holdings haven’t changed much since the fourth quarter of 2015 — the latest period covered in the SNB’s published breakdowns of its U.S. equity book.

The update for the first quarter of 2016 will come in May, alongside portfolio updates from hedge funds, known as the “13-F” filings.

Hedge funds, too

Of course, the SNB isn’t alone in facing a hit from Apple. The Cupertino-based tech darling has long been a favorite with institutional investors, and at least 163 hedge funds were long the stock ahead of its earnings report, according to the blog ZeroHedge.

Among those standing to lose the most if Apple’s stock does slide may be Vanguard Group and BlackRock Inc. BLK, +0.09% Vanguard owned 323 million shares at the end of 2015, and BlackRock held 219 million shares, according to FactSet data. Both companies are giant providers of index funds that simply seek to track markets, and therefore they can’t avoid big stakes in the world’s largest company by market value.

Norges Bank Investment Management — Norway’s central bank investment arm, and the world’s largest sovereign-wealth fund — could also suffer due to its holding of 48 million shares, the FactSet data showed.

BlackRock and the NBIM declined to comment, while Vanguard wasn’t immediately available for comment.

[kiladi bullodu]

Androlla kutra

 

 

[idibezwada]

Paper losseski enti ee hadavidi

[SupremeIndian]

JAFFAS lol 

[Peach]

naake stocks lo abcd lu telivu anukunna....ekamga ikkada oka central bank ki kuda telivu annamaata. poyi poyi one billion dollars oke stock meeda pettaru.