David Einhorn has picked up a new long position in Micron Technology, Inc. ( MU) in this quarter. While speaking at the Robin Hood Investors Conference, Einhorn disclosed Micron Technology, Inc. ( MU) as his best idea. The conference is closed to the media but the stock pick leaked on Twitter and then spread all over the place.
Einhorn on consolidation of semiconductor industry
While speaking to CNBC during the Halftime Report with Scott Wapner, Einhorn further elaborated on the position. He said the semiconductor industry has pretty much consolidated, and it now includes just three main players, which includes Samsung Electronics and Micron. Einhorn also mentioned that he was shorting Micron Technology, Inc. ( MU) a few years back but now the industry has changed. Speaking about Micron, Einhorn also mentioned his successful investment in Seagate Technology PLC ( STX) which he closed successfully in Q2. He also spoke about The St. Joe Company ( JOE) which Einhorn has shorted for seven years now. Einhorn said that St. Joe’s has just sold two-thirds of their land and their stock price still does not reflect the decline that it should have seen, being that land is their principal asset. Einhorn says St. Joe’s should be at $7, compared to the current price of $18. Einhorn also discussed his longstanding short position in Green Mountain Coffee Roasters Inc. ( GMCR) which has gained over 16% today on positive earnings report. The stock has now gained 75% against Einhorn’s short bet through the year.
Hedge funds like Micron
Micron Technology, Inc. ( MU) makes semiconductor chips and is a popular holding among hedge funds. Seth Klarman’s Baupost Group holds a large position in the company and bought another 22 million shares in the last quarter. Baupost Group now holds 64 million shares of the chip maker, which are worth more than $1 billion. Ray Dalio’s Bridgewater Associates holds 1.99 million shares of Micron Technology whereas Andreas Halvorsen’s Viking Global owns 37 million shares of the company. Ray Dalio also spoke at the Robin Hood Conference today. Shares of Micron Technology, Inc. ( MU) has gained over 5% so far since news broke that Einhorn is betting in favor of the company.