This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Einhorn's New Investments Keep on Losing

Stocks in this article: HIIAROMROSTBZYHOOAAPLMSFT

Story corrected to note Marathon Oil split into two companies in July

BOSTON ( TheStreet) -- David Einhorn, trying to make up for losses in his Greenlight Capital hedge fund, is turning to unloved stocks such as Huntington Ingalls (HII) and Aeropostale (ARO) for a second-half rebound.

It's hard to tell who's having a tougher year, Einhorn or the New York Mets, the baseball team in which he's seeking to buy a $200 million stake. Einhorn's hedge fund fell 5% through the second quarter, prompting him to shake up his investments. The Mets are 20 games back in the standings in the National League East division.

David Einhorn (Greenlight Capital)

Unfortunately, Greenlight Capital's four new positions have likely been unprofitable for Einhorn, who was brutalized by Yahoo (YHOO). In a letter to shareholders last month, Einhorn disclosed that Greenlight Capital sold out of its stake in Yahoo at a loss following the Internet search giant's dispute over the ownership transfer of Alibaba's online-payments business Alipay.

Greenlight's 13F filing to regulators on Monday revealed that Einhorn also dumped positions in Cardinal Health (CAH), CIT Group (CIT), Xerox (XRX), MI Developments (MIM), Transatlantic Holdings (TRH) and MDC Holdings (MDC).

On the other hand, Greenlight built new positions in retailer Aeropostale ($60 million), ship builder Huntington Ingalls ($82 million), State Bank Financial (STBZ) ($34 million) and Marathon Oil (MRO) ($46 million).

The only problem is that many of the new positions has fallen hard since Einhorn reported ownership. Since June 30, assuming Einhorn still owned the stocks, Aeropostale has plunged 31%, Huntington Ingalls has fallen 18%, and State Bank Financial has slipped 12%. Marathon Oil split into two companies as of July 1, splitting into Marathon Petroleum (MPC), and now trades at $27.54.

Hedge funds that manage more than $100 million are required to disclose their equity holdings, options and convertible debt on a Form 13F filed to the Securities and Exchange Commission within 45 days of the end of a quarter. Funds aren't required to report short positions betting on declines. Greenlight ended the second quarter with 35 reported holdings with a market value of $4.6 billion.

Among Einhorn's other moves, the fund manager bulked up several technology positions, increasing the portfolio weighting to the sector more than any other. Greenlight lifted its stake in Microsoft (MSFT) by 5.7 million shares to 14.8 million. Einhorn also bought up shares of Seagate Technology (STX) and Apple (AAPL).

>>View David Einhorn's Portfolio

Meanwhile, Einhorn cut the hedge fund's exposure to financials by slashing stakes in Employers Holdings (EIG), a provider of worker's-compensation insurance, as well as Fifth Street Finance (FSC). Greenlight also trimmed positions in BP (BP), Pfizer (PFE) and LyondellBasell (LYB), among others.

-- Written by Robert Holmes in Boston.



>To contact the writer of this article, click here: Robert Holmes.

Readers Also Like:


Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs