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
- George Clooney And Amal Alamuddin's Wedding In Venice: Photos Of Groom And His Family, Friends [Slideshow]
- NFL Recap - Week 4: Green Bay Packers 38, Chicago Bears 17 [PHOTOS]
- Walking Is Superfood For Fitness; Celebrities Who Walk For Health
- Derek Jeter With The New York Yankees Through The Years [IN PICTURES]
Join the Conversation
- New Zealand Economy Benefits From Australia's Big Investments; Kiwi Down After RNBZ Comments
- ETF Outlook for Thursday, January 2 (FEZ, FXI, SPY, XHB)
- January Second Trading: Always Interesting
- 13 Things Investors Learned In 2013 - Part II
- Are Diversity and Quality the Way to Profit from the Rebound in Gold and Coal?
- Forget Nexus 6 Release Date, Android Phones Will Soon Showcase Pure Google Apps & Features
- 3 Reasons to Get the Samsung Galaxy Note 4 Instead of the iPhone 6
- iPhone 6 vs Moto G 2014: Motorola’s Budget Smartphone Takes On Apple’s Premium Smartphone
- $249.99 Motorola Moto 360 Smartwatch's First Promo Out; 'Stone Leather' Replaces 'Gray Leather' - Available In BestBuy [Watch Video]
- BlackBerry Passport Sold Out As Preorders Reached 200,000
- iOS 8 And iOS 8.0.2 Security Flaw Revealed, Anyone Can Easily Bypass Touch ID And Passcode Security Features
- Australia Cracks Down On International Money Laundering Syndicate