David Einhorn, Founder and President of the $8.8 billion Hedge Fund Greenlight Capital (see Einhorn’s full portfolio here) was recently making news when, in February 2013, he filed and later dropped a lawsuit against Apple Inc. (NASDAQ:AAPL). In addition to Apple’s lawsuit, the tech giant’s performance in the stock market hasn’t given him much to cheer about, returning -19.6% year-to-date.
Aside from Apple, David Einhorn is better known for his aggressive approach as a hedge fund manager. Greenlight Capital has returned an average of 21.5% since the time of its inception in 1996.
Einhorn believes in value investing and that is the reason why Apple Inc. (NASDAQ:AAPL) is the top investment of Greenlight Capital. Apple trades at cheaply valued price-to-earnings and price-to-earnings growth multiples, and it’s attractively priced by nearly every other metric under the sun. Check out our latest analysis of Cupertino, Apple, and what investors can expect from the company here.
Other than Apple Inc., Einhorn’s other major investments includes General Motors Company (NYSE:GM), CIGNA Corporation (NYSE:CI), Marvell Technology Group Ltd. (NASDAQ:MRVL) and Computer Sciences Corporation (NYSE:CSC).
Einhorn’s top investment, Apple Inc. (NASDAQ:AAPL), requires no introduction and despite its selloff, it’s still a top darling of hedgies, though insurer AIG is now more popular. Besides Greenlight Capital, hedge funds like Citadel Investment Group and D.E. Shaw are also invested big time in Apple. The company’s performance for the first quarter of 2013, though, failed to impress its shareholders and returned -20% over this time period.
On the whole, of the 450+ hedge funds we track here at Insider Monkey, 132 were long Apple Inc. (NASDAQ:AAPL) heading into this year. That’s more than 99.9% of the stocks trading today, but it’s worth noting that a whopping 26 fund managers got rid of the stock. A few names who cut their stakes entirely include Thomas Steyer’s Farallon Capital, Israel Englander’s Catapult Capital Management, Andreas Halvorsen’s Viking Global, Dan Loeb’s Third Point, and Roberto Mignone’s Bridger Management.
Still, along with Einhorn, there were many managers who were going in the opposite direction, including Ken Griffin and Citadel, D.E. Shaw, and more. Here’s the full list of Apple investors in the hedge fund space.
Let’s take a look at Einhorn and Greenlight’s top 5 investments, which obviously include Apple Inc. (NASDAQ:AAPL), and see how they fared during the first quarter of 2013.