David Einhorn Has Been Busy Buying Apple
By Aabha Rathee | February 16, 2013 2:30 AM EST
With hedge around him making cuts in the company, David Einhorn’s Greenlight Capital .
Einhorn said he instead wants to start issuing perpetual preferred stock with a 4 percent yield. While the company responded by saying it would consider this part of his recommendation, it has pledged to fight his opposition to the proxy proposal.
Apple’s took a massive stumble last quarter, falling more than 20 percent as concerns about the company’s slowing growth rate, lowering margins, and increased competition rose. The stock is down an additional 12 percent so far this year. There have been reports of several hedge funds, including Leon Cooperman’s Omega Advisors, Thomas Steyer’s Farallon Capital, and Barry Rosenstein’s Jana Partners, cutting down their Apple holdings by large percentages.
However, Greenlight, which has owned Apple shares since 2010, raised its holdings in the company by 46 percent to 1.6 million shares, including those 275,000 call options, regulatory filings showed. Einhorn spoke with Apple chief executive Tim Cook and finance chief Peter Oppenheimer about increasing returns to investors before filing the lawsuit.
Greenlight also bought 39,000 new shares in Google (NASDAQ:GOOG), whose stock price has risen about 18 percent in the past six months. The fund’s total U.S. stock investments were worth $6.38 billion at the end of the fourth quarter, up from $6 billion at the end of September.
Copyright Wall St. Cheat Street. All rights reserved.
Most Popular Slideshows
- Taylor Swift Named People's Best Dressed Stars Of 2014 [PHOTOS]
- Champions League Results: Barcelona Barely Escapes With A Win, Chelsea Fails To Hold On To The Lead [PHOTOS]
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
Join the Conversation
- 2 Reasons Nexus 6 Release Date is Worth the Wait: Android L Data Encryption & Material Design
- Google Release Roundup: New Nexus 6, Nexus 8, Android 5.0 L Launch and Killer Features
- Unofficial ‘Samsung Galaxy Alpha’ Can Now Be Purchased For $700 In The US
- Xperia Z, Xperia ZL, Xperia ZR Android 4.4.4 KitKat Update Guide
- Canada Consumer Alert: Costco No Longer Accepting American Express Cards Starting Jan 1
- Amazon Announces Kindle Fire HD 6, Kindle Fire HD 7 Tablets; Official Release Date Is Oct 2
- Scotland Voted Against Independence, Early Results Indicate