So-called earnings surprises have become something of a
misnomer on Wall Street in that everyone tends to expect and
place bets on them nowadays. But every once in a while there
are real earnings jolts in the market that few are positioned
to take advantage of in their portfolios.
This fall was an exception. Real surprises were aplenty. At
the head of the class was Cupertino-based Apple Computer, which
saw its shares jump 13% in a single day in late September based
on stellar sales of its iPod digital music player.
While most hedge funds, including tech-focused hedge funds,
made Apple conspicuous by its absence in their portfolios,
there were a few that did take a bite and scored big. One was
Kingdon, which held a heavy 600,000-share stake in Apple, based
on its latest quarterly filings with the SEC.
And Mark Kingdon's fund shop likely made a killing...