Friday, 21 October 2016
Last updated 16 hours ago
Feb 15 2013 | 3:00am ET
Greenlight Capital's David Einhorn may be suing Apple Inc., but he's far from down on the company.
Greenlight boosted its stake in Apple by about 200,000 shares in the fourth quarter, as the company's stock lost 20%. The New York-based hedge fund now owns 1.3 million Apple shares and has call options to buy 275,000 more.
Greenlight sued Apple last week, accusing the company of violating regulations by bundling three unrelated matters in a proxy. The hedge fund is opposed to one, which would require a shareholder vote for Apple to issue preferred shares; Einhorn has called on the company to do so as a way to return some of its $137 billion cash reserve to investors.
Einhorn wasn't alone in adding Apple last quarter; Soros Fund Management did, as well, doubling its Apple stake to more than 180,000 shares, as did Appaloosa Management, which now owns 913,000 shares. But the two were very much in the minority among their peers, as Eton Park Capital Management, Jana Partners and Omega Advisors, sold off their entire stakes in the company, and several other prominent hedge funds dumped or reduced their Apple holdings, including Farallon Capital Management, Lone Pine Capital, Third Point and Viking Global Investors.