Apple Inc. (AAPL), Micron Technology, Inc. (MU), Time Warner Inc (TWX): Big Winners and Top Picks for David Einhorn’s Greenlight Capital

Among the short ideas that did wonders for Einhorn, as far as fourth quarter performance is concerned was United States Steel Corporation (NYSE:X). The short bet on the integrated steel producer turned out to be a profitable venture for Einhorn, as shares fell from $39.17 to $26.74 during the fourth quarter, a 47% drop. The reasoning behind the investment, according to the investor letter, lay in the belief that management of the company had engineered the perception of a steel shortage, which caused the stock price to soar. The trend reversed in the fourth quarter and Greenlight Capital was able to pick up hefty gains. The fund believes that although the stock might be cheap at current levels, considering the estimated 2015 EPS of $3.10, that the company might have difficulty meeting that forecast given the current outlook for steel.

Despite a declining stock, which has persisted into 2015, down another 1.42%, United States Steel Corporation (NYSE:X) did report its highest full year net income for fiscal year 2014, since 2008, with $102 million in earnings, $0.62 per diluted share, while fourth quarter income was $275 million, or $1.83 per diluted share. United States Steel has projected adjusted income from operations for 2015 to be between $550 million and $850 million.

Among the new and promising positions that Greenlight Capital has initiated during the fourth quarter are Time Warner Inc (NYSE:TWX) and Keysight Technologies Inc (NYSE:KEYS). Time Warner’s stake comprises nearly 3.79 million shares and amounts to 4.31% of the fund’s portfolio value. The idea behind this investment was that the media and entertainment company would have to better monetize its premium cable network (HBO) and cut costs across the company, if they are to fend off another activist advance from Rupert Murdoch, after his July bid failed to materialize.

Time Warner Inc (NYSE:TWX) did just that, subsequently announcing that it would offer HBO in the United States as a standalone streaming product, while further undertaking a number of other initiatives that have increased earnings estimates and sent shares soaring, including the purchase of German music-streaming service SoundCloud in November. Greenlight acquired its Time Warner position at an average price of $72.72, and shares closed the year at $85.42.