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

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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  • cee2cee
    Braeburn? Apple? MLP? Seems like someone at Apple is a brony :D
    Reply
  • alidan
    cee2ceeBraeburn? Apple? MLP? Seems like someone at Apple is a brony
    god i love mlp... why didnt i see that...
    Reply
  • Marco925
    And yet people wonder why we keep posting staggering deficits.
    Reply
  • aftcomet
    Their time will come. They can't keep it up forever.
    Reply
  • dark_wizzie
    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.
    Reply
  • benji720
    So wait... Their products are made by slaves in China and then they ship the money to Ireland? And here I thought Apple was an American company.
    Reply
  • m32
    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
    Reply
  • mihaimm
    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
    Reply
  • back_by_demand
    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.
    Reply
  • teh_chem
    Oh Apple, so clever with the names you select for your subsidiaries...
    Reply