This Day On The Street
Continue to site
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

Einhorn Moves Into Health-Care Stocks, Trims Tech

NEW YORK ( TheStreet) -- David Einhorn, who heads the hedge fund firm Greenlight Capital, is making a big bet on the health-insurance industry and trimming technology holdings.

Einhorn initiated new positions in Cigna (CI - Get Report) and Coventry Health (CVH) during the second quarter, according to a securities filing released today. He also bought more of UnitedHealth (UNH), Humana (HUM), WellPoint (WLP), and Aetna (AET - Get Report), adding between 1.6 million shares and 3.1 million shares of each to his portfolio.

The bet on insurers may be related to the recent upholding of the so-called ObamaCare legislation by the Supreme Court. Over the next few years, several tens of millions of Americans will gain health insurance, boosting revenue and, some argue, profits. Still, the presidential election could change all that.

Einhorn also added new positions in Virgin Media (VMED) and Hess (HES) during the second quarter. Big increases were made in Seagate (STX - Get Report) and General Motors (GM), giving them the Nos. 2 and 3 spots in his portfolio, resprectively.

Apple (AAPL - Get Report) is still Einhorn's top position in the fund, but he trimmed his holdings in the tech giant by 9,000 shares. Major reductions were taken in Best Buy (BBY) and Compuware (CPWR). Best Buy's stock declined 11% in the quarter as the company lost market share to online competitor Amazon (AMZN). Einhorn exited before co-founder Richard Schulze offered to pay $24 to $26 per share for the company. Greenlight still owned about 1.2 million shares of both Best Buy and Compuware as of June 30.

The total value of Einhorn's portfolio at the end of the quarter was $6.4 billion, which is up 15% from $5.5 billion at the end of March.

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.

-- Written by Lindsey Bell in New York.

>To follow the writer on Twitter, go to Lindsey Bell.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
AET $108.82 0.00%
CI $130.66 0.00%
STX $58.34 0.00%
FB $81.53 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs