Cigna Corporation (NYSE:CI) was another of Einhorn’s top picks as Greenlight owned 8.2 million shares at the end of December. Analyst expectations for 2013 imply a current-year P/E of 8. We would note that Cigna recently made acquisitions that are expected to strengthen its Medicare business, though it is the case that most M&A ends up destroying shareholder value. The stock is up 32% in the last year. Greenlight has been bullish on health insurers in general, and counted Aetna Inc. (NYSE:AET) among its top ten picks as well. Jeffrey Tannenbaum’s Fir Tree was another major investor in Cigna.
Einhorn added to his position in Marvell Technology Group Ltd. (NASDAQ:MRVL), a $5.3 billion market cap semiconductor developer. Greenlight is doubling down here, as Marvell- where the hedge fund has had a significant position for some time- has fallen 35% in the last year. That percentage decline about matches the fall in earnings which the company reported in its most recent fiscal quarter compared to the same period in the previous fiscal year. Renaissance Technologies, founded by billionaire Jim Simons, owned 6.7 million shares of Marvell at the end of the fourth quarter (check out Renaissance’s stock picks).
Greenlight had 7.7 million shares of Computer Sciences Corporation (NYSE:CSC) in its portfolio according to the 13F, making the $7.3 billion market cap IT services company its fifth largest position by market value. Glenview Capital, managed by Larry Robbins, sold a small number of shares but still reporting owning 4.2 million at the beginning of January (research more stocks Glenview owned). The stock trades at 14 times earnings, whether we consider trailing numbers or forward estimates, and so Computer Sciences might be worth considering as a value stock.
Disclosure: I own no shares of any stocks mentioned in this article.