David Einhorn's Greenlight Capital has sold its remaining shares in Apple over concerns that China could retaliate to U.S. trade policies, reports CNBC.
"We ultimately sold because our differentiated thesis from 2011 has become consensus," Einhorn said. "We are somewhat worried about Chinese retaliation against America's trade policies."
In the previous quarter, Greenlight reduced its stake in Apple by 77% (486,000 shares) and then it sold the remaining shares on August 31st at $228. Since purchasing the stock in 2010, Greenlight says its clients have made over $1 billion on it. Apple shares dropped 2.4% on the news.
CNBC notes that Greenlight has not had a good year. The firm lost 9.1% last quarter and is down 25.7% on the year. Einhorn says the situation is similar to when it bet on Apple in 2013 despite it dragging down the portfolio. "It basically feels the same today – but now the market appears to be rejecting our entire strategy of value investing," Einhorn said. "Just like with [Apple] in 2013, few agree with us on most of our positions."
More details in the full report linked below...
Read More
[Flash]
"We ultimately sold because our differentiated thesis from 2011 has become consensus," Einhorn said. "We are somewhat worried about Chinese retaliation against America's trade policies."
In the previous quarter, Greenlight reduced its stake in Apple by 77% (486,000 shares) and then it sold the remaining shares on August 31st at $228. Since purchasing the stock in 2010, Greenlight says its clients have made over $1 billion on it. Apple shares dropped 2.4% on the news.
CNBC notes that Greenlight has not had a good year. The firm lost 9.1% last quarter and is down 25.7% on the year. Einhorn says the situation is similar to when it bet on Apple in 2013 despite it dragging down the portfolio. "It basically feels the same today – but now the market appears to be rejecting our entire strategy of value investing," Einhorn said. "Just like with [Apple] in 2013, few agree with us on most of our positions."
More details in the full report linked below...
Read More
[Flash]