Carl Icahn says underweight Apple bets will hurt funds' performance

Billionaire activist investor Carl Icahn said Thursday that mutual funds will increasingly realise that being underweight shares of Apple will hurt their performance.

New York: Billionaire activist investor Carl Icahn said Thursday that mutual funds will increasingly realise that being underweight shares of Apple will hurt their performance.

"They are underweight Apple in relation to the index funds, and I think more and more of these funds will realise 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," Icahn told Reuters.

In an open letter to Apple Chief Executive Officer Tim Cook on his website on Monday, Icahn said Apple should be trading at $240, nearly double its current stock price, and that he believed the company was poised to enter the television market by 2016 and the automobile market by 2020.