David Einhorn's Greenlight Capital Letter to Investors Defends Apple, Doesn't Mention Herbalife

Earlier, David Einhorn's Greenlight Capital released a letter to investors. In the letter, Greenlight focuses on the firm's Q1 performance, which amounted to a 6.8% gain. Greenlight began the letter by debunking various Apple AAPL short theses. Greenlight noted that hedge funds are, broadly speaking, underweight Apple. Further, they state that Apple shares are fairly priced even if Apple does not continue to grow. Greenlight makes a point to note that they view Apple as a software company--not a hardware company. Therefore, comparisons to other phone makers such as Motorola are not accurate. Much of the letter's Apple content was a reiteration of comments Einhorn had made last month at the Ira Sohn conference. Greenlight also touched on another long--Seagate Tech STX and noted that the firm remained long Microsoft MSFT, Delphi DLPH, Arkema AKE, and General Motors GM. Greenlight mentions its shorts of St. Joe JOE and Green Mountain Coffee Roasters GMCR--shorts that the firm has had for some time. Greenlight also mentions a belief that the Japanese yen will move lower as the Bank of Japan's governing makeup shifts and facilitates more aggressive action. Greenlight pointed out that it closed its brief short of Diamond Foods DMND and applauded Diamond for its "self policing." Greenlight also touches on cash and the long-term outlook for holding significant cash positions. Greenlight makes a case for future inflation, poking fun at Warren Buffett's famous remarks on gold. Perhaps most interesting is that the letter makes no mention of Herbalife HLF. This is notable as traders and analysts had widely anticipated that Einhorn, after questioning the company's management on the earnings call, would make Herbalife his next short thesis. Shares of Herbalife are currently trading up on the session.