All great love affairs come to an end. On Wall Street, they come to a very public end. Famed investor Carl Icahn and Apple have broken up.
In news reported by various outlets on Thursday (April 28), the activist investor told CNBC that his worries over China were enough to make him jettison his nearly 46 million-share position. This action accelerated since the start of this year, The New York Times reported, though selling actually began in the final quarter of 2015.
In an interview with CNBC, Icahn stated that uncertainty over Chinese policies that could affect the ability of Apple to compete there led to his unwinding of the huge position.
During his phone interview with the cable channel, Icahn stated that, despite his confidence in Apple’s management (particularly Tim Cook), “it is about China,” he said. “China could be a shadow for [Apple], and we have to look at that.”
Apple, of course, said earlier this week that sales of its products in China were down 11 percent in the March quarter. And even while Icahn may have been selling or pruning his position, the investor said that he had made about $2 billion on the entire position, which was initiated three years back.
Even while Apple may have been selling, other funds of note were in the midst of beefing up their positions in the tech giant. As NYT stated, Tiger Global Management initiated “a new 10.6 million-share stake in the fourth quarter,” according to research service Standard & Poor’s Capital IQ.