Following a major court ruling against Apple, Minotaur Capital, an Australian-based global equities fund, swiftly positioned our portfolio to capitalise on the market implications. Speaking with Capital Brief, our co-founder, Thomas Rice, shared that he took a short position against the tech giant after Apple was found in violation of court orders regarding its App Store practices.
As an AI-powered hedge fund specialising in global equities strategies, we recognised the significance of this ruling. The Northern California court's decision restricts Apple's high-margin App Store revenue stream, which we believe will have far-reaching consequences across technology markets.
"It's one of the harshest judgments I've seen against a company like Apple," Rice told Capital Brief.
He also took long positions in app developers like Duolingo, Spotify, and Roblox, anticipating they'll benefit from reduced Apple fees. This demonstrates our comprehensive approach to identifying market opportunities following regulatory changes.
"If they can divert some of that revenue to direct purchases, we think they'll have a significant cost saving," Rice explained.
Among the Magnificent Seven stocks, Apple represents one of only two names we're actively betting against, alongside Tesla. While Apple generates just 5% of its revenue from the App Store, Rice noted it's a "very, very high margin" business that the company has now effectively lost control of.
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