Another major hedge fund that just recently disclosed its long equity positions for the second quarter of 2014 is David Einhorn’s Greenlight Capital. The fund acknowledged ownership of 40 long equity stakes, with a market value of more than $7.1 billion. Its equity portfolio is mainly focused on information technology (IT) stocks (57% of the total portfolio), although the investments are quite diversified.
As we recently reported, the fund returned 6.7% through the end of June, compared to the S&P 500 Index’s 6% return. Let’s, thus, take a look at the fund’s top holdings for the second quarter of the year in order to better comprehend its above-average returns.
Although Mr. Einhorn trimmed his exposure to his two largest positions for the first quarter, these companies maintained the lead –trading places, however. Now, the fund’s largest bet is placed on Micron Technology Inc (NASDAQ:MU), a $33.2 billion market cap semiconductor manufacturer. Following an 8% decrease in its stake, Greenlight owns 40.34 million shares of the company, worth more than $1.32 billion, which account for more than 18.5% of the fund’s equity portfolio’s total value.
This position and makes Greenlight the second largest hedge fund shareholder (amongst those we track) at Micron Technology Inc (NASDAQ:MU), only trailing Seth Klarman’s Baupost Group. Mr. Klarman’s fund owns roughly 51.65 million shares of the company. I should highlight that Micron Technology Inc (NASDAQ:MU) was one of the main drivers of Greenlight’s returns. The stock surged by almost 45% year-to-date, and by 55% over the second quarter.
Second in line is Apple Inc. (NASDAQ:AAPL), a tech behemoth that needs no introduction. After a 32% diminution in its stake, the fund owns 9.45 million shares of the company, worth more than $878 million. Similar to the previous case, Apple Inc. (NASDAQ:AAPL)’s stock has largely outperformed the S&P 500 Index, returning 21.6% year-to-date, and 21.2% between April and June.
Other renowned hedge fund managers betting on Apple Inc. (NASDAQ:AAPL) are Carl Icahn of Icahn Capital LP, who owns almost $5 billion in stock – or 52.76 million shares, and D.E. Shaw, with 11.88 million shares.
Third in Einhorn’s list, same as in the previous quarter, is Marvell Technology Group Ltd (NASDAQ:MRVL), a $6.8 billion market cap fabless semiconductor provider. After acquiring 150,000 shares, the fund declared ownership of 39.57 million shares of Marvell Technology Group Ltd (NASDAQ:MRVL), worth more than $567 million.
Unlike the aforementioned stocks, Marvell Technology Group Ltd (NASDAQ:MRVL)’s stock lost in value since the beginning of the year. The price plunged 7.7% year-to-date, and 7.1% over the second quarter. Probably taking advantage of the low pricing, other funds also boosted their exposure to Marvell Technology Group Ltd (NASDAQ:MRVL). For instance, D.E. Shaw almost quadrupled its stake in the company, and last disclosed holding 4.04 million shares.
For more information on David Einhorn’s Greenlight Capital, check out his Top Small-Cap Picks.
Disclosure: Javier Hasse holds no position in any stocks or funds mentioned