David Einhorn's Apple Trade Looking Savvy (AAPL)

Noted value investor and hedge fund manager David Einhorn was buying up shares of Apple AAPL in the second quarter. In a letter to his investors, he said that the company's growth prospects were undervalued. Einhorn's cost basis in Apple (AAPL) was $248.09 per share according to the letter. Apple reported earnings on Tuesday after the close of trading, exceeding analysts' estimates by a wide margin. The company reported earnings per share of $3.51 on revenue of $15.70 billion. This compared with Wall Street consensus estimates of $3.11 per share on revenue of $14.75 billion. The shares have been rising over the last couple of days and have added 2.71% during Wednesday's session to $258.80. So far, so good for Einhorn. “While growth over the next few years will certainly be slower than it has been over the last few years, (Apple) does not appear to have fully penetrated its market opportunities,” Einhorn wrote. “Accordingly, the opportunity to invest in this leading company (with a better financial profile than market participants seem to acknowledge) appears iTractive (attractive).”