Einhorn Wins on $FSLR $GMCR Shorts, Opens Stake in $XRX $DELL

David Einhorn’s Greenlight Capital bought shares in Xerox (XRX) and Dell (DELL) during the fourth quarter while cashing in on its bet against First Solar (FSLR).

While the FSLR short was one of the most profitable in the firm’s history, Einhorn told investors that he “found very few places to make money” but “kept mistakes to a minimum” in 2011,” writes the Wall Street Journal. Greenlight Capital returned 2.9% in 2011. “Never has so much work gone into making 2%,” said Einhorn. ”For all its ups and downs, dramatic headlines, and extremely high daily volatility, the market ended the year just about where it started.”Einhorn “was impressed by Dell buying back shares last year while its valuation was relatively low, as well as the company’s effort to broaden its offerings beyond personal computers,” prompting him to buy a position in the company for his Greenlight Capital. He also initiated a stake in XRX, impressed by “Xerox’s stock repurchasing and its success securing technology outsourcing contracts.”

In the fourth quarter, Einhorn sold Greenlight Capital’s short position in FSLR as well as its shorts in Green Mountain Coffee Roasters (GMCR), the company that Einhorn so famously derided at the Value Investing Congress in October, and Diamond Foods (DMND), the snacks company dogged by investigations into its accounting. The GMCR short was described by Einhorn as a “significant winner.”