Here’s Why Greenlight Capital Sold HP (HPQ)

Greenlight Capital, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Greenlight Capital’s investment strategy focuses on constructing a bottom-up portfolio comprising undervalued long positions and overvalued short positions, while also including a macro book to hedge risks and capture insights. The Partnership returned 9.0% (net) in 2025 compared to 17.9% for the S&P 500 index. In contrast, it returned 8.5% in Q4, compared to 2.7% for the index. The Partnership has returned $6.1 billion, net of fees and expenses, to its investors since its inception in May 1996.  For more information on the Partnership’s top picks in 2025, please check its top five holdings.

In its fourth-quarter 2025 investor letter, Greenlight Capital highlighted stocks like HP Inc. (NYSE:HPQ). HP Inc. (NYSE:HPQ) is a technology company known for its personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies. HP Inc. (NYSE:HPQ) shares traded between $18.93 and $35.28 over the past 52 weeks. On January 29, 2026, HP Inc. (NYSE:HPQ) stock closed at $19.39 per share with a market capitalization of about $18.124 billion. One-month return of HP Inc. (NYSE:HPQ) was -12.34%, and its shares lost 29.92% of their value over the last three months.

Greenlight Capital stated the following regarding HP Inc. (NYSE:HPQ) in its fourth quarter 2025 investor letter:

“We exited HP Inc. (NYSE:HPQ) with a tiny gain and Seadrill (SDRL) with a tiny loss. In both instances, our initial thesis was correct and we had early gains, but we overstayed our welcome. In HPQ’s case, we benefited from the Windows refresh cycle. However, AI computers have not materialized into a notable upswing in business. Prospectively, the company faces a new challenge from soaring memory prices that are likely to force substantial increases in PC prices and could have a large negative impact on volumes and/or margins. We therefore decided to exit.”

HP Inc (HPQ) Hit by Tariffs and Weak Outlook—UBS Cuts Price Target Sharply

HP Inc. (NYSE:HPQ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held HP Inc. (NYSE:HPQ) at the end of the third quarter, up from 51 in the previous quarter. While we acknowledge the risk and potential of HP Inc. (NYSE:HPQ) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HP Inc. (NYSE:HPQ) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered HP Inc. (NYSE:HPQ) and shared the list of most undervalued tech stocks to buy in 2026. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.