David Einhorn Spills The Beans On Why He Sold Out Of These Stocks In Q2

Although Greenlight has been able to achieve a 15% compounded interest from its investment in Marvell Technology Group Ltd. (NASDAQ:MRVL), the fund didn’t see much upside for the fabless semiconductor provider from here on out, given the sluggish PC market and lack of earnings growth in the company’s core storage and networking business. Although the technology company has fallen short of expectations a number of times during Greenlight’s investment period, recent sentiment from a court ruling in favor of Marvell Technology Group Ltd. (NASDAQ:MRVL) with regards to a patent infringement lawsuit brought by Carnegie Mellon has given the stock an upward push. It just so happens that said lawsuit spurred Greenlight to initiate that position in the company in the first place, following its being beaten down by the verdict in that case in late 2012. Greenlight held about 9.5 million shares of Marvell valued at $133.02 million at the end of the first trimester of 2015. The stake amassed about 1.78% of the company’s outstanding stock. Among the funds that we track, David Shaw‘s D.E Shaw is the largest shareholder of Marvell Technology Group Ltd. (NASDAQ:MRVL), with some 11.76 million shares valued at $172.87 million.

Greenlight has held a position in EMC Corporation (NYSE:EMC) since the fourth quarter of 2013 and the holding amounted to some 4.22 million shares valued at $107.82 million at the end of the first three months of the year. The rationale behind closing the position was the company’s reduced chances for a favorable change in its corporate structure, and a lack of growth in its storage business. Greenlight made a small profit from this investment. Among EMC Corporation (NYSE:EMC)’s investors that we keep track of, Paul Singer’s Elliot Management ranks at the top, owning 33.5 million shares valued at $856.26 million.

Einhorn also covered closing long positions in Nokia Corporation (ADR) (NYSE:NOK), PlayTech, and Altice, and covering (and thus closing) his short position in Intuitive Surgical, Inc. (NASDAQ:ISRG), which is down by 5.94% year-to-date.

Disclosure: None