Apple Inc. (NASDAQ:AAPL)’s plan to return capital to shareholders has earned the praise of David Einhorn, who has also increased his stake in the company. Einhorn sued Apple earlier this year in an attempt to get the company to increase shareholder value by returning more capital.
David Einhorn’s Great Expectations For Apple Inc. (AAPL)
On a conference call with his firm Greenlight Capital Re, Ltd. (NASDAQ:GLRE), Einhorn said that he expects that Apple Inc. (NASDAQ:AAPL) will come out with more innovations, even going so far as to say that they’re waiting for “Apple’s next blockbuster product.” He pointed to the company’s stickiness and growing customer base as additional reasons for increasing his company’s stake in Apple.
Investment strategies used by hedge funds have evolved over the years, although the biggest changes have come in the use of computers to develop portfolios. Rosetta Analytics is a woman-founded and woman-led CTA that's pioneering the use of artificial intelligence and deep reinforcement learning to build and manage alternative investment strategies for institutional and private Read More
At the end of the fourth quarter of last year, Einhorn held $1.5 million worth of Apple Inc. (NASDAQ:AAPL) shares and he said today that he’s increased his stake, although he declined to give an exact number at this point. He also didn’t say exactly when they increased his firm’s stake, but it may have happened sometime within the last 30 days.
Toward the end of April, the stock dipped below $400 per share, so it would make sense that Einhorn, who has had a long history of bullish views when it comes to Apple Inc. (NASDAQ:AAPL), increased his firm’s stake in the company at that point.
Today so far, shares of Apple have fallen 0.4 percent, although they’ve rallied nicely over the last month, rising from less than $400 per share to now almost $460 per share.
Other Takeaways From This Morning’s Call
The other important note from Einhorn’s conference call this morning was the boost his Greenlight Capital got from the weakening yen. He’s said for some time that he believes the new regime at Japan’s central bank is weakening the yen and making gold stronger.