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COMING UP:Share Opener Variant 1



A humbling time for billionaire investor David Einhorn and his struggling hedge fund Greenlight Capital may be forcing him to cash in on some of the market's most high profile winners. A regulatory filing Tuesday reveals he slashed his stake in Apple by 77% last quarter, just weeks before the tech giant became America's first company ever valued at $1 trillion on the stock market.
And that's not the first time Einhorn has reduced its Apple holdings. He's been selling down his stake ever since 2013 when he called on Apple to issue preferred stock. Apple is not the only high tech company nearly erased from Einhorn's portfolio. He cut his stake in Micron Technology by 91% during the same quarter the stock rallied to an 18-year high.
I'm Conway Gittens in New York. Einhorn's Greenlight Capital is turning in one of the worst performances of any hedge fund so far this year. Now, through the second quarter, the fund was down 18%. Compare that to the S&P 500 which was up roughly 3%. Now, this lackluster performance has been going on for years, so much so that infuriated investors are pulling out hundreds of millions of dollars from his fund.
In a recent letter to remaining shareholders, he said, quote, right now the market is telling us we are wrong, wrong, wrong, about everything. Einhorn is hoping to change that wrong into a right by using his high tech proceeds to pile into beaten-down retail stocks. He's picked up shares of the Gap, Dollar General, and TJ Maxx to name a few.
Picking retail names could be a risky bet, with some economists wondering if the US economy is as strong as it's going to get.