What Makes Apple (AAPL) a Strong Holding?

The London Company, an investment management company, released “The London Company Income Equity Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. In the third quarter, the portfolio appreciated 6.0% gross (5.8% net) compared to a 5.3% increase in the Russell 1000 Value Index. Positive stock section led the outperformance of the portfolio in the quarter, but was partially offset by sector exposure headwinds. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, The London Company Income Equity Strategy highlighted stocks such as Apple Inc. (NASDAQ:AAPL). Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The one-month return of Apple Inc. (NASDAQ:AAPL) was 4.64%, and its shares gained 21.25% of their value over the last 52 weeks. On November 4, 2025, Apple Inc. (NASDAQ:AAPL) stock closed at $270.04 per share, with a market capitalization of $3.99 trillion.

The London Company Income Equity Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its third quarter 2025 investor letter:

"Apple Inc. (NASDAQ:AAPL) – AAPL remains a consistently strong performer, providing stability within the technology sector even amidst the elevated volatility of other large-cap growth stocks. Its earnings report beat expectations, driven by ongoing growth in the high-margin Services business and strong iPhone sales. Further, excitement over pre-orders and early sales of the iPhone 17 line helped drive performance. We continue to own AAPL for its strong user ecosystem and incredible cash flow production that it allocates in a positive manner."

Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 156 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the second quarter, which was 159 in the previous quarter. Apple Inc. (NASDAQ:AAPL) reported revenue of $102.5 billion in the September quarter, reflecting an 8% year-over-year increase. While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Apple Inc. (NASDAQ:AAPL) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.