Billionaire chairman of Greenlight Capital Inc., David Einhorn, is one of the most closely followed hedge fund managers. According to the latest disclosure with SEC, Einhorn made several tweaks to the fund portfolio in Q3. While Greenlight Capital snapped up the shares of Micron Technology, Inc. (MU) for Q3, it also made generous cuts to the holdings of General Motors Company (GM) and Apple Inc. (AAPL).
David Michael Einhorn has made a name for himself as a talented short-seller as well as a long-term value investor. He’s well-known for his 2002 short bet of Allied Capital and, later, his short position against Lehman Brothers that he kept open all the way to the company’s bankruptcy. A dedicated poker player, Einhorn graduated summa cum laude with distinction in all subjects from Cornell University, where he earned a B.A. in Government, from the College of Arts and Sciences. “The market remains very challenging for value investing strategies, as growth stocks have continued to outperform value stocks. The persistence of this dynamic leads to questions regarding whether value investing is a viable strategy,” Einhorn said last month as he explained why he won’t be investing in Tesla or Amazon.
Einhorn was only 27 when he launched Greenlight Capital Inc. in January 1996, starting out with less than $1 million AUM. Two decades years later, the fund today manages over $6.27 billion of client money as per TipRanks statistics and has a portfolio gain of 94.8% since June 2013. The fund’s success is the driving force behind Einhorn’s personal net worth of $1.5 billion.
Let us now take a look at his strategic portfolio moves in Q3.
Micron Technology, Inc.
Einhorn ramped up his holdings of fast-growing semiconductor Micron Technology, Inc. by 89.51%, translating to a total value of $197.51 million. This proved to be a good move, as the company has surged by nearly 21% since the last filing.
