Hedge fund manager David Einhorn ups stake in Apple stock to 11.7M shares
Billionaire hedge fund manager David Einhorn, who once had a high-profile spat with Apple management over the company's use of cash, increased his stake in the iPhone maker significantly last quarter, new filings reveal.
In a 13-F filing with the U.S. Securities and Exchange Commission, Einhorn's Greenlight Capital disclosed that it owned 11.2 million shares of AAPL stock as of Sept. 30. That was a significant increase from the 7.4 million his fund owned at the end of the previous quarter, on June 30.
Einhorn increased his stake in Apple whil ecutitng positions in SunEdison Inc. and Micron Technology. The hedge fund manager is under scrutiny after facing his worst year since the financial crisis, according to The Wall Street Journal.
Though Einhorn is buying in Apple, other hedge funds have cut their stake in the company, filings show. Among the funds selling off shares of AAPL cited by Reuters were Adage Capital Partners (now at 8.5 million shares), Coatue Management LLC (6.8 million) Appaloosa Management (1.3 million), Nevsky Capital (908,156), and Bridgewater Associates (274,852 shares). Tiger Eye Capital also cut its stake from 356,502 shares in June to none in September.
Einhorn's Greenlight Capital first bought into Apple in 2010. The hedge fund manager's original intent was to be a passive shareholder, but as the company's cash built up and its market valuation dropped, he felt the situation got "out of hand."
He eventually sued Apple in 2013, accusing the company of having a "problem" with hoarding cash. Einhorn and his fund argued that the company was accruing cash in a manner that hurt investors, though the lawsuit was eventually dropped that same year.
Facing pressure from investors, fund managers and others, Apple has gradually increased its quarterly dividend payments and share buyback program on an annual basis, investing more of its massive cash pile back into itself. As of the end of the September quarter, Apple had $205 billion in cash, most of it held overseas.
In a 13-F filing with the U.S. Securities and Exchange Commission, Einhorn's Greenlight Capital disclosed that it owned 11.2 million shares of AAPL stock as of Sept. 30. That was a significant increase from the 7.4 million his fund owned at the end of the previous quarter, on June 30.
Einhorn increased his stake in Apple whil ecutitng positions in SunEdison Inc. and Micron Technology. The hedge fund manager is under scrutiny after facing his worst year since the financial crisis, according to The Wall Street Journal.
Though Einhorn is buying in Apple, other hedge funds have cut their stake in the company, filings show. Among the funds selling off shares of AAPL cited by Reuters were Adage Capital Partners (now at 8.5 million shares), Coatue Management LLC (6.8 million) Appaloosa Management (1.3 million), Nevsky Capital (908,156), and Bridgewater Associates (274,852 shares). Tiger Eye Capital also cut its stake from 356,502 shares in June to none in September.
Einhorn's Greenlight Capital first bought into Apple in 2010. The hedge fund manager's original intent was to be a passive shareholder, but as the company's cash built up and its market valuation dropped, he felt the situation got "out of hand."
He eventually sued Apple in 2013, accusing the company of having a "problem" with hoarding cash. Einhorn and his fund argued that the company was accruing cash in a manner that hurt investors, though the lawsuit was eventually dropped that same year.
Facing pressure from investors, fund managers and others, Apple has gradually increased its quarterly dividend payments and share buyback program on an annual basis, investing more of its massive cash pile back into itself. As of the end of the September quarter, Apple had $205 billion in cash, most of it held overseas.
Comments
Your post might have been accurate and okay if it didn't start out with "It isn't" because it sure as hell is!!! I guess in your eagerness to prove somebody else wrong you forgot to actually read the statement.
He was talking about how much cash Apple is holding - not their net worth - so his statement that it is 205 Billion is accurate.
Your response would be analogous to me saying I weigh 180 pounds and you saying "No - you're 10 pounds overweight!!!". The statement might be true without the word "No"!
Anyhow - if you're going to call somebody out for being wrong - be SURE they're wrong or you're just making yourself look stupid. In this case you could have easily presented your information without that first sentence - but you didn't and now it's you that's wrong! Oh well - live and learn I guess....
If this is such a good idea - then why are you the only one pushing for it? Why don't any of the powerful fund managers holding millions of shares push for this also?
Einhorn is a man!
Explain to me why Apple taking its stock off of the public exchanges is a non-starter?
The benefits are obvious: No more manipulation by algo machines, option traders, and short-traders. Once its stock is off of the public exchanges you would see far less FUD in the media because its the short traders/manipulators who pay the media to write these stories.
The only negative is less liquidity. In a private exchange there would probably be a minimum hold period of 30 days. But IMO that is a good thing to weed out the traders from the stock.
it doesn't matter what arguements I put forward, your obsessive posting about Apple going Private/off public exchanges shows that you will respond with the same tired reasoning of why its a good idea. Funny enough you seem to be in a party of one in this respect. Stock holders will not vote for it, Apples board have put forward no plans or even suggested that they would entertain such an idea.
plus does it matter if the stock value goes up or down daily/hourly if your a long term holder. When the value is only going in one direction over a reasonable holding period of time. You sound like a manic day trader with your "oh no its down 3% today" etc. take a chilll pill.
If it's so undervalued keep on buying shares.
He is right-- There is a systematic bias against Apple by institutional investors.
Perhaps Apple must "think different" in this regard.