Apple (AAPL), SunEdison (SUNE) and Micron Technology (MU) Among David Einhorn's Top Picks

David Einhorn is the founder and president of Greenlight Capital, a long-short value-oriented hedge fund. The Fund has recently filed its Form 13F for the second quarter of the year, disclosing its long equity positions as of June 30, 2015.

So, let's take a look at its most interesting moves and positions. After 6 new stock purchases, the closing of 9 positions, an increase in 8 stakes, and the reduction in 15 of them, the fund's equity portfolio's market value increased to $7.97 billion from $7.79 billion. The equity portfolio is mainly invested in Technology (40%), Consumer Discretionary (17%) and Industrials (15%) stocks.

In this article, we will look into the top three picks at the end of Q2.

These are Apple (AAPL), SunEdison (SUNE) and Micron Technology (MU). The stocks comprised 11.61%, 9.31% and 8.96% of the total portfolio, which is highly concentrated because the top 10 stocks amass 61.65% of the total portfolio value.

In Apple, the fund holds 7.38 million shares, down by 1% on the quarter; the value of the stake amounts to $925.96 million. It is important to mention that the stock lost 0.75% during the quarter. Citigroup (C) has reiterated the firm's buy rating with a target price of $145.

Another prominent investor of the company is Carl Icahn, with 52.76 million shares, valued at $6.62 billion, held as of the end of the Q2 2015.

SunEdison represents the second most valuable investment in Einhorn's Portfolio. After a 1% reduction in the company's stake during the second quarter, the fund amounted to about 24.84 million shares valued at $743.1 million. But despite this bearish sentiment, the stock gained a return of about 24% in the second quarter. At the end of the second-quarter, Dan Loeb's Third Point held a huge number of SunEdison shares, its stake containing 12.4 million shares valued at about $370.88 million.

Billionaire Steven Cohen's Point72 Asset Management purchased 15.95 million shares of the company, which represent 5.1% of the company's outstanding stock.

Finally is Micron Technology, which provides semiconductor solutions worldwide. The fund held about 37.95 million shares valued at $714.97 million at the end of the second quarter of 2015. With a market cap of $17.31 billion, the stock was down by almost 30% during the second quarter while Mr. Einhorn was increasing its exposure to 14% in the same time frame.

Another fund with great exposure to the stock is Seth Klarman's Baupost Group, which held a stake of 19.7 million shares of the firm valued at $371.26 million. This guru also increased the stake by 6.18% in the reported quarter.

Published on Sep 2, 2015
By Omar Venerio
Capital Markets, Derivatives and Financial Management Professor, Master in Finance and CFA candidate. I am an independent trader of stocks and options and passionate about the stock market.

Copyrighted 2016. Content published with author's permission.

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