market folly

David Einhorn's hedge fund Greenlight Capital have just reduced their holdings in Foreign & Colonial Asset Management (FCAM). We originally covered when Greenlight initiated this position back in December of 2009 where they held 16,450,119 shares. After their recent sales, they now own only 2,201,293 shares of FCAM. This marks an 86.6% reduction in their position size, selling 14,248,826 shares. While they haven't completely exited the position, it somewhat looks like they're headed that way. Einhorn's sizable reduction is even more intriguing when you consider that a large activist, Sherborne Investors, has taken a large stake in FCAM.

Greenlight was required to file with the UK regulatory body because their position has now receded below a 3% ownership stake in the company. Hedge funds and institutional managers are required to disclose their position when they either go above or below that 3% threshold in the UK. To view the rest of Einhorn's positions (as well as a ton of other hedge fund portfolios), head to our brand new in-depth newsletter: hedge fund wisdom by market folly.

Taken from Google Finance, F&C Asset Management plc (F&C) is "principally engaged in the business of asset management. F&C is an active international investor but with a client focus on the United Kingdom and Continental Europe. As of December 31, 2008, the Company had £98.6 billion of assets under management."