David Einhorn is the co-founder and president of Greenlight Capital. During the quarter, the hedge fund delivered 5.6% returns (net of fees and expenses) to investors as its long, short and macro positions were profitable.
ValueWalk's Raul Panganiban with Maurits Pot, Founder and CEO of Dawn Global. Before this he was Partner at Kingsway Capital, a frontier market specialist with over 2 billion AUM. In the interview, we discuss his approach to investing and why investors should look into frontier and emerging markets. Q2 2021 hedge fund letters, conferences and Read More
Greenlight Capital new stock positions
During the quarter, Greenlight Capital acquired 3,795,700 shares of Time Warner with approximately $324.22 million market value, as reported earlier by ValueWalk. The hedge fund noted that Time Warner “refocused its business in to a collection of high-quality assets” including basic cable networks (CNN and Turner), a premium and most valuble cable network (HBO) and Warner Brothers movie studio. Greenlight Capital believes that Time Warner can monetize HBO aggressively and reduce costs across the entire company.
Over the past 52-weeks, the shares of Time Warner traded between $59.91 and $88.13 per share. The stock closed $83.17 on February 13. The company gained more than 28% in stock value over the past year. Greenlight Capital bought its stake in the company at an average price of $72.72 per share.
Greenlight Capital bought 4,464,846 shares of Keysight Technologies, an electronic test and measurement equipment manufacturer. The company was divested out Agilent Technologies last year. The hedge fund’s stake in Keysight Technologies has a market value of approximately $150.77 million.
Greenlight Capital believed that Keysight Technologies has flexibility to invest in untapped growth initiatives, make better R&D as well as decisions in capital allocations. According to the hedge fund, the Street does not fully appreciate the prospects of the company.
The shares of Keysight Technologies closed $36.49 per share, up by almost 1% on February 13. Greenlight Capital acquired its stake in the company at an average price pf $30.54 per share.
During the quarter, Greenlight Capital also acquired 2,025,000 shares of Yahoo for approximately $102.28 million. The stock price of Yahoo rose more than 1% to $44.42 per share on February 13. The company gained more than 16% in stock value over the past year.
The search company recently filed a cybersquatting complaint against three adult dating websites with the World Intellectual Property. The search company alleged that the three adult dating websites (TumblrSexDating.nl, TumlrSexDating.nl and FlickrDating.nl) are exploiting its brands. Yahoo owns Flickr and Tumblr.
Greenlight Capital reduced positions
Greenlight Capital reduced its stockholding in Apple by 566,500 shares to 8,605,542 shares. The stock is still the largest position of the hedge fund, which accounts 12.62% of its portfolio. Its stake in the tech giant has a market value of around $949.88 million at the time of its 13F filing.
Apple is among the winning stock positions of Greenlight Capital during the quarter. The hedge fund noted that the latest iPhones were selling at record levels, and the stock remains “inexpensive at 14×2015 estimates and less than 12x net of cash.”
The shares of Apple closed to a new all-time high at $127.08 per share on February 13. Carl Icahn stated that the current stock value of Apple is $216 per share, and he expects a huge increase in the company’s stock buyback program. Apple has approximately $740 billion market capitalization.
Greenlight Capital also reduced its position in Marvell Technology Group by 1,650,707 shares to 24,732,881 shares. Its stake in the company has a market value of around $358.62 million, which accounts 4.7% of its equity portfolio. The company is the fifth largest stockholding of the hedge fund.
Marvell Technology closed $16.59 per share on February 13. The stock gained more than 8% over the past year.