Here’s How YCG’s Strategy of Buying Cyclically Unprofitable Stock, Apple (AAPL), Has Paid Off

Core Insights - YCG LLC's fourth quarter 2025 investor letter indicates a market environment favoring speculation and high-risk behavior, particularly in AI-themed stocks, where unprofitable companies are outperforming profitable ones [1] - The firm emphasizes a long-term investment strategy focused on high-quality stocks, which have historically shown strong recovery after downturns, supporting their patient investment approach [1] - YCG Investments highlights Apple Inc. as a significant holding, noting its recent performance and market capitalization, while also discussing strategic trading decisions involving Apple and other stocks [2][3] Market Overview - The S&P 500 Index returned 2.66% and the S&P Global Broad Market Index returned 3.22% in the fourth quarter of 2025 [1] - The current market trend is characterized by a momentum-driven environment with a decline in high-quality stocks and alpha generation from heavily shorted stocks [1] Company Focus: Apple Inc. - Apple Inc. experienced a one-month return of -6.25% but gained 13.18% over the last 52 weeks, closing at $257.46 per share with a market capitalization of $3.79 trillion as of March 06, 2026 [2] - YCG Investments has strategically adjusted its holdings by trimming Apple shares to buy more of Verisk, demonstrating a tactical approach to capitalize on market volatility [3] Hedge Fund Interest - Apple Inc. ranks 10th among the 40 Most Popular Stocks Among Hedge Funds heading into 2026, with 169 hedge fund portfolios holding the stock, an increase from 166 in the previous quarter [5] - While acknowledging Apple's potential, YCG Investments suggests that certain AI stocks may offer greater upside potential with less downside risk [5]