That billionaire activist who speaks loudly about Apple has spoken again. Today, he said that mutual funds with consistently underweight shares will see a decline as time goes on. According to a Reuters report, Icahn said “They are underweight Apple in relation to the index funds, and I think more and more of these funds will realize that’s going to hurt their performance in the future as Apple continues to launch new products in new categories and continues to grow earnings.” According to Morningstar, funds that underweighted Apple were more likely to under-perform compared to those with broad market indexes.
Icahn said that Apple should be trading at nearly double its price right now, at $240. At the end of the first quarter of 2015, he owned around 53 million Apple shares. On Thursday, he repeated that Apple should increase share buybacks, which isn’t anything new. He’s been going on about that since the summer of 2013.