David Einhorn's hedge fund Greenlight Capital was up 7.9% net in the second quarter and is up 6.4% for the year. In their Q2 letter, Greenlight reveals a new position in Lam Research (LRCX).
They see the company as a beneficiary as the process of converting semiconductor designs into chips becomes harder to do.
Greenlight also bought a stake in Mallinckrodt (MNK) but reversed course and sold the stake due to their negative stance on Questcor (QCOR), a company MNK has agreed to purchase. Greenlight thinks the combined company "is setting itself up to be a very attractive short sale candidate if the merger is completed." The letter notes that Greenlight was short QCOR.
During the quarter, the hedge fund also sold out of its longs in Aspen Insurance (AHL) and Rite Aid (RAD) at nice gains.
At the end of Q2, Greenlight's largest positions (in alphabetical order) were: Apple (AAPL), gold, Marvell Technology (MRVL), Micron Technology (MU), Resona Holdings (TYO:8308) and SunEdison (SUNE).
Embedded below is Greenlight's Q2 letter with commentary on more of their positions:
Friday, July 25, 2014
Greenlight Capital Q2 Letter: Einhorn Reveals Lam Research Stake
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