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Apple Subsidiary Braeburn is 'World's Largest Hedge Fund'

By - Source: Zero Hedge | B 22 comments

Subsidiary holds upwards of $117 billion in assets.

Not content with being the world's most valuable company, Apple subsidiary Braeburn Capital has become "the world's largest hedge fund."

At the end of June, Braeburn, headquartered in Reno, Nevada had $117.2 billion in assets. Bridgewater, which is widely recognized as the top hedge in the world, had around $100 billion in assets.

Braeburn's existence is simple: to manage Apple's massive and continuously growing cash pile. The firm reportedly keeps its enormous amount of funds in a series of investment vehicles, which includes the likes of stocks and bonds.

Apple's Braeburn division will be shrouded in mystery for the foreseeable future, though, as is the case with hedge funds, they don't have have to divulge information pertaining to its holdings.

With the amount of revenue Apple generates, you wouldn't be wrong in believing that the firm's tax bill ranges in the multi-billions. It's quite the contrary, however. Along with several other large companies (with the majority being technology-based firms), Apple sends its U.S. earnings into its Ireland subsidiary and performs what's known as the "Double Irish With a Dutch Sandwich" to heavily decrease its tax bill.

 

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Top Comments
  • 15 Hide
    dark_wizzie , October 2, 2012 5:05 AM
    I hate Apple too, but I'm getting kind of tired of seeing the word apple. I'm starting to dislike the fruit, now. That's how bad it's getting.
  • 15 Hide
    Marco925 , October 2, 2012 4:17 AM
    And yet people wonder why we keep posting staggering deficits.
  • 14 Hide
    benji720 , October 2, 2012 5:59 AM
    So wait... Their products are made by [almost] slaves in China and then they ship the money to Ireland? And here I thought Apple was an American company.
Other Comments
    Display all 22 comments.
  • 9 Hide
    cee2cee , October 2, 2012 4:07 AM
    Braeburn? Apple? MLP? Seems like someone at Apple is a brony :D 
  • 4 Hide
    alidan , October 2, 2012 4:14 AM
    cee2ceeBraeburn? Apple? MLP? Seems like someone at Apple is a brony


    god i love mlp... why didnt i see that...
  • 15 Hide
    Marco925 , October 2, 2012 4:17 AM
    And yet people wonder why we keep posting staggering deficits.
  • 4 Hide
    aftcomet , October 2, 2012 4:46 AM
    Their time will come. They can't keep it up forever.
  • 15 Hide
    dark_wizzie , October 2, 2012 5:05 AM
    I hate Apple too, but I'm getting kind of tired of seeing the word apple. I'm starting to dislike the fruit, now. That's how bad it's getting.
  • 14 Hide
    benji720 , October 2, 2012 5:59 AM
    So wait... Their products are made by [almost] slaves in China and then they ship the money to Ireland? And here I thought Apple was an American company.
  • 13 Hide
    m32 , October 2, 2012 6:32 AM
    And the US comes after us, the little guys, for avoid paying taxes. Where do I signup to to have my assets move to Ireland so I can pay less tax?

    Oh, you don't take chump change? Oh well, I have to keep on paying them.... lol
  • 4 Hide
    mihaimm , October 2, 2012 9:50 AM
    Major companies known to employ the Double Irish strategy are:
    Apple Inc.
    Eli Lilly and Company
    Facebook
    Forest Laboratories
    Google
    Microsoft
    Oracle Corp.
    Pfizer Inc.

    Source: Wikipedia
  • 7 Hide
    back_by_demand , October 2, 2012 10:13 AM
    I see this as a damning indictment of the tax laws in the USA, none of these companies are doing anything illegal and countries like Ireland, Netherland, have rates of corporate tax at this level for just this reason. Set up a small office in their country and they get a chunk of money that would otherwise go to the USA. So how about the USA sets up several tiers of tax payment when the money involved is above the several-billions mark and incentivise these companies to come back. Simply saying "let's set a tax for these big companies and we will get a windfall" clearly has failed and all they have done is take their business elsewhere. The UK has done the same by dropping corporation tax. If you open yourself for business, you will get the money.
  • 4 Hide
    teh_chem , October 2, 2012 12:57 PM
    Oh Apple, so clever with the names you select for your subsidiaries...
  • -4 Hide
    vkg1 , October 2, 2012 1:19 PM
    I don't know what hedge fund is and don't want to but suffice to say that it is undoubtedly evil just like everything else Apple and Wallstreet these days and ever for that matter.
  • 2 Hide
    chicofehr , October 2, 2012 1:20 PM
    I don't really blame them actually. I'm just working a regular low paying job and don't own a business but I can understand why they do that. Why would I give lots of my money to a corrupt government that only gives me regulations, rules and more legal stuff to follow. The rule of thumb with government is, the more money you give them, the more they spend. Its a bottomless pit. I just wish we all could do this too :p 
  • -1 Hide
    bllue , October 2, 2012 1:35 PM
    Billions in revenue and barely any tax being paid. What these parasites pay in taxes is the same ratio as a person who gets a salary of 50k and only pays $100.
  • -2 Hide
    waikano , October 2, 2012 2:25 PM
    There's nothing wrong with Capitalism
    There's nothing wrong with free enterprise
    Don't try to make me feel guilty
    I'm so tired of hearing you cry

    There's nothing wrong with making some profit
    If you ask me I'll say it's just fine
    There's nothing wrong with wanting to live nice
    I'm so tired of hearing you whine
    About the revolution
    Bringin' down the rich
    When was the last time you dug a ditch, baby!

    Excerpt from 'Capitalism' by Oingo Boingo
  • 2 Hide
    luciferano , October 2, 2012 2:50 PM
    back_by_demandI see this as a damning indictment of the tax laws in the USA, none of these companies are doing anything illegal and countries like Ireland, Netherland, have rates of corporate tax at this level for just this reason. Set up a small office in their country and they get a chunk of money that would otherwise go to the USA. So how about the USA sets up several tiers of tax payment when the money involved is above the several-billions mark and incentivise these companies to come back. Simply saying "let's set a tax for these big companies and we will get a windfall" clearly has failed and all they have done is take their business elsewhere. The UK has done the same by dropping corporation tax. If you open yourself for business, you will get the money.


    I agree. I wouldn't hold it against the companies legally for avoiding US tax in a legal way such as this (I'm a little behind in this, but I've heard that the tax rates on businesses can be even more ridiculous than those on the individual people) and the US government should fix this problem at the source, how they issue taxes.
  • 0 Hide
    jivdis1x , October 2, 2012 4:46 PM
    Here, I am in favor of Apple. They are the lesser of the two evils. Due to the unfair taxes, the government has force large company to result to these tactics.
  • 0 Hide
    luciferano , October 2, 2012 5:14 PM
    chicofehrI don't really blame them actually. I'm just working a regular low paying job and don't own a business but I can understand why they do that. Why would I give lots of my money to a corrupt government that only gives me regulations, rules and more legal stuff to follow. The rule of thumb with government is, the more money you give them, the more they spend. Its a bottomless pit. I just wish we all could do this too


    Well, some rules and regulations are kinda important. I'd hate to see the situations that we'd be in if we didn't regulate food or very anti-competitive business practices.
  • 0 Hide
    robochump , October 2, 2012 6:43 PM
    Well Apple simply wants a ton of money saved for the bad times. Apple is on a roll that few companies have experienced so save for the future since nothing lasts forever.
  • 0 Hide
    svdb , October 2, 2012 7:43 PM
    Tax evasion is a crime and any individual caught gets fined and/or send to jail. Since the Supreme Court ruled that a company is a person, the same should apply to Apple. You can't send all Apple employees to jail (that'd be unfair), but you could send their CEO and the rest of the brass around him... mmm...
  • 0 Hide
    spookyman , October 2, 2012 7:48 PM
    So what if Apple tries hiding its money.

    The Rich never paid taxes. They middle class is the backbone of society. Without a strong middle class we are doomed.
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