Billionaire David Einhorn’s Greenlight Capital Re, Ltd. (GLRE) Bought Apple Inc. (AAPL), Sold Microsoft Corporation (MSFT) During Q1

Page 2 of 2

Some profit taking. Einhorn had been buying Computer Sciences Corporation (NYSE:CSC) in the first several months of 2012; it is currently up 41% from the end of September, and about 80% from the end of June. Delphi Automotive PLC (NYSE:DLPH) has more than doubled since the end of 2011, when Greenlight Capital Re, Ltd. (NASDAQ:GLRE) first reported a large stake. The fund trimmed its holdings of each by about 25% between January and March. Delphi Automotive PLC (NYSE:DLPH), a $15 billion market cap auto parts company specializing in electrical, electronic, and powertrain components, has been seeing weaker business conditions but Wall Street analysts are projecting high enough earnings growth that the five-year PEG ratio is only 0.6. Technology outsourcing and services provider Computer Sciences Corporation (NYSE:CSC) has been fairly stable in terms of its business, going by recent reports, and following the rise in price is just at the edge of value territory with trailing and forward P/Es in the 12-13 range.

We can understand why Greenlight Capital Re, Ltd. (NASDAQ:GLRE) is cashing out a bit at these two stocks- Computer Sciences has gotten to the point where it isn’t a clear value stock anymore, while in the case of Delphi it seems advisable to look at other auto parts companies or automakers which might be cheaper. We’re also not too excited about Microsoft Corporation (NASDAQ:MSFT), and at the very least it seems to be just getting into value territory by virtue of a favorable product cycle (though if Windows 8 sales pick up, or the company comes up with a plan to distribute more cash, it could be worth a look). Apple seems like at least a candidate for value status in our book, though it would have to slow its decline in earnings and it certainly seems risky for Einhorn to have increased his exposure to the stock as much as he did.

Disclosure: I own no shares of any stocks mentioned in this article.

Page 2 of 2