David Einhorn Said His Fund Bought AAPL Shares In Q2

In an article on Bloomberg, David Einhorn, the manager of hedge fund Greenlight Capital Inc, disclosed that he has bought shares of Apple Inc AAPL in the second quarter. According to Einhorn, the growth of AAPL is undervalued. In a letter sent to Greenlight Capital’s shareholders on July 16, Einhorn said that the firm has purchased the stock at an average price of $248.09 per share, representing 15 times its 2010 earnings estimate for the Cupertino, California-based company. Einhorn, known for shorting Lehman Brothers Holdings Inc before it collapsed, said, “While growth over the next few years will certainly be slower than it has been over the last few years, AAPL does not appear to have fully penetrated its market opportunities… Accordingly, the opportunity to invest in this leading company (with a better financial profile than market participants seem to acknowledge) appears iTtractive.” According to Einhorn’s letter to shareholders, the hedge fund manager was able to beat the returns of an average hedge fund in the second quarter. While Greenlight Capital LP returned 2.2%, Greenlight Capital Qualified LP generated 1.7% returns, net of fees and expenses. Meanwhile, the HFRX Global Hedge Fund Index fell 2.8% and the Standard & Poor’s 500 Index moved back 16%. Einhorn added, “We have maintained a conservative and defensive portfolio, with a small net long position throughout and have almost entirely avoided the volatility of the schizophrenic market.”