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KICKED OUT OF THE FOUR PERCENT CLUB

February 19, 2013

By March 2012 (its second month in the Four Percent Club), Apple’s market cap exceeded the capitalization of the entire S&P Small Cap 600, and no doubt institutional owners of the stock belittled their Small Cap colleagues over this fact (although Small Cap managers are laughing now).
-Doug Ramsey, Leuthold Weeden


Last spring we noted Apple Inc. had joined a club no company has ever managed to remain a part of—stocks that have reached a four percent weighting in the S&P 500. By March 2012 (its second month in the Four Percent Club), Apple’s market cap exceeded the capitalization of the entire S&P Small Cap 600, and no doubt institutional owners of the stock belittled their Small Cap colleagues over this fact (although Small Cap managers are laughing now).

Apple’s S&P 500 weight—after a fairly typical 10-month tenure in the Four Percent Club—is now 3.20%, and no company has regained admittance after falling this far. (Once you mingle with the “commoners” they don’t want you back.

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