Skip to content
Subscriber Only

Apple Takes Its Bankroll to Reno

Loaded with growing cash reserves, the computer maker has created an asset-management firm in a state with fewer taxes and looser ties with the IRS

Apple Computer is breaking records with sales of its popular iPod music player -- and has the coffers to prove it. Now the Cupertino, Calif.-based computer maker has come up with what could be a smart way to manage part of that swelling cash pile. Apple has set up a company based in Nevada with the purpose of managing its cash and short-term investments in a tax-advantageous manner, BusinessWeek Online has learned.

According to public documents, Apple has incorporated Braeburn Capital, an asset management company based in Reno, (Nev.) Braeburn -- named for a variety of apple that's uniquely sweet and tart -- will be a vehicle for managing Apple's investment portfolio. By incorporating in Nevada, Apple will be shielded from certain taxes imposed by the state of California, according to a person briefed on the matter.