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Hedge Fund Greenlight Capital Buys Ensco International, NCR Corp., Apple Inc., Sells Automatic Data Processing, ATP Oil & Gas, Coinstar Inc.

Renowned hedge fund manager David Einhorn just reported his second quarter portfolio. These are the details of buys and sells.

The three funds at Greenlight Capital avoided the market decline of 2Q10. Each returned 2.2, 1.7 and 2.2% after fees. For the first half of the year, numbers have not changed much: 1.6, 2.2, and 0.8%, respectively. Einhorn attributed his success during the periods to “a conservative and defensive portfolio”. He has maintained a “small net long position” during the period and managed to avoid the market volatility completely.

Einhorn updated his thoughts on a number of his holdings in his recent shareholder letter here.

The other significant winner during the quarter was our short of Moody’s Investors Service (MCO), which reversed some recent gains and fell from $29./75 to $19.92 per share. The proposed financial reform bill raises the rating agency legal liability more than the bulls expected. Additionally, the Financial Crisis Inquiry Commission held hearings where former MCO’s employees alleged that the company had, in fact compromised ratings quality for market share. This evidence should put meat on the bones of the fraud claims in the ongoing litigation against the rating agencies that is ever so slowly working its way through the courts. We believe that an eventual, but likely, legal loss will have a significant negative impact on MCO shares.

The most significant loser during the quarter was Pfizer (PFE), which fell from $17.15 to $14.26 per share. Though the company announced a strong first quarter earnings result of $0.64 per share, a weaker Euro caused analyst to reduce 2010 consensus estimates from $2.25 to $2.15 per share. Longer term concerns about potential austerity measures in Europe and setbacks on some pipeline products also weighed heavily on the share price. As investors gain confidence in PFE’s future sustainable earnings at these levels, which we believe are attainable, investors may pay a higher multiple of earnings than the current sub -7x.

African Barrick Gold (United Kingdom: ABG) operates gold mines in Tanzania. It was brought public in March through a 25% carve-out by Barrick Gold, the world’s largest gold producer. The Partnership established their position at an average price of £5.72 per share. At less than 6x 2010 EBITDA, a 10% free-cash-flow yield and $200 per ounce of reserves, we purchased ABG at about half the valuation of peer gold miners. The company is well positioned to grow its production over the next five years through a combination of brownfield expansions at existing mines and the development of another large deposit that it already controls. Management incentives are well aligned with shareholders. ABG ended the quarter £6.24 per share.

Apple Inc. (AAPL) is one of the world’s most successful and innovative technology companies. Over the last few years, the company has transitioned from a niche PC hardware and software provider into a more diversified company with market leadership positions in mobile communications and portable entertainment via its iPod, IPhone, and iPad products and the iTunes service. From 2004 to 2010 revenues have grown about 700% or almost 40% per year. Earnings have grown even faster from $0.38 to an estimated $14.00 per share. AAPL has a fortress balance sheet with more than $40 per share in cash and investments. During the recent downturn, the Partnership established a position at an average price of $248.09 per share, representing 15x this year’s estimated earnings net of cash. 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 at its current multiple. AAPl shares ended the quarter at $251.53 each.

Ensco plc (ESV) in an offshore contract oil drilling company operating a large fleet of shallow-water jack-up rigs and a small but new fleet of deep water rigs. The Deepwater Horizon oil spill and resulting 6month drilling moratorium in the Gulf of Mexico caused significant share price declines throughout the sector. ESV was not involved in the horrible accident, which should not materially impact the company’s long-term potential. ESV has approximately $7 per share in net cash and a tangible book value of $37.50 per share. The shallow water drilling business, which is unaffected by the drilling moratorium, generates $4.00 per share in en-levered mid-cycle earnings and $8.00 per share in peak earnings. At the Partnership’s average cost of $39.41 per share, we appear to be getting the shallow water fleet at a low value and the deepwater fleet (in which ESV has thus far invested over $15 per share to build and should add $2.00 and $4.00 to mid-cycle and peak EPS respectively) for free. ESV shares ended the quarter at $39.28 each.

NCR Corporation (NCR) manufactures and services automated teller machines (ATM), retail point-of-sale (POS) and self-check-out terminals. The stock has recently been negatively impacted because of large accounting losses on its pension obligations and losses from investments in a new entertainment related business. The items obscure what we believe to be largely sound, strong free cash-flow ATM and retail businesses, poised for solid growth over the coming years from product upgrade cycle. The company’s net cash balance sheet and strong ability to generate additional cash-flow give it the flexibility to deal with its pension obligations. In addition, the entertainment business is expected to be breakeven in 2011 and profitable thereafter. The Partnerships established a position in NCR at an average price of $13.58 per share or under 10x current operating earnings excluding the start-up entertainment related losses and adjusting for the true economics of the pension obligation. NCR shares ended the quarter at $12.12 each.

According to the most recent filings of his investment company, Greenlight Capital Inc., David Einhorn owns 34 stocks with a total value of $3.3 billion. These are the details of the buys and sells.

For the details of David Einhorn's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=David+Einhorn

This is the sector weightings of his portfolio:

Financials 23.9%
Technology 18.5%
Health Care 17.7%
Consumer Services 10.8%
Oil & Gas 9.4%
Consumer Goods 4.6%
Industrials 3.9%
Basic Materials 0.3%


These are the top 5 holdings of David Einhorn

  1. CIT Group Inc. (CIT) - 10,590,429 shares, 10.81% of the total portfolio.
  2. Pfizer Inc (PFE) - 23,154,098 shares, 9.95% of the total portfolio. Shares added by 27.54%
  3. ENSCO International Inc. (ESV) - 7,416,880 shares, 8.78% of the total portfolio. Shares added by 10000%
  4. Cardinal Health Inc. (CAH) - 6,550,500 shares, 6.64% of the total portfolio.
  5. Carefusion Corp. (CFN) - 8,718,724 shares, 5.97% of the total portfolio.


Added: Microsoft Corp. (MSFT)

David Einhorn added to his holdings in Microsoft Corp. by 125.31%. His purchase prices were between $23.31 and $31.39, with an estimated average price of $28.01. The impact to his portfolio due to this purchase was 2.95%. His holdings were 7,660,442 shares as of 06/30/2010.

Microsoft develops, manufactures, licenses, and supports a wide range of software products for a multitude of computing devices. Microsoft Corp. has a market cap of $213.84 billion; its shares were traded at around $24.4 with a P/E ratio of 11.62 and P/S ratio of 3.42. The dividend yield of Microsoft Corp. stocks is 2.13%. Microsoft Corp. had an annual average earning growth of 12.6% over the past 10 years. GuruFocus rated Microsoft Corp. the business predictability rank of 3-star.

Added: Becton Dickinson And Company (BDX)

David Einhorn added to his holdings in Becton Dickinson And Company by 170.15%. His purchase prices were between $67.45 and $79.66, with an estimated average price of $73.87. The impact to his portfolio due to this purchase was 2.31%. His holdings were 1,796,500 shares as of 06/30/2010.

Becton, Dickinson and Co. is engaged principally in the manufacture and sale of a broad line of supplies, devices and systems used by health care professionals, medical research institutions and the general public. Becton Dickinson And Company has a market cap of $16.56 billion; its shares were traded at around $71.06 with a P/E ratio of 13.97 and P/S ratio of 2.31. The dividend yield of Becton Dickinson And Company stocks is 2.09%. Becton Dickinson And Company had an annual average earning growth of 13.9% over the past 10 years. GuruFocus rated Becton Dickinson And Company the business predictability rank of 4.5-star.

Added: Pfizer Inc (PFE)

David Einhorn added to his holdings in Pfizer Inc by 27.54%. His purchase prices were between $14.28 and $17.29, with an estimated average price of $15.97. The impact to his portfolio due to this purchase was 2.15%. His holdings were 23,154,098 shares as of 06/30/2010.

Pfizer Inc is a research-based, global pharmaceutical company that discovers and develops innovative, value-added products that improve the quality of life of people around the world and help them enjoy longer, healthier, and more productive lives. Pfizer Inc has a market cap of $129.7 billion; its shares were traded at around $16.2 with a P/E ratio of 7.24 and P/S ratio of 2.59. The dividend yield of Pfizer Inc stocks is 4.48%. Pfizer Inc had an annual average earning growth of 1.8% over the past 10 years.

Added: Xerox Corp. (XRX)

David Einhorn added to his holdings in Xerox Corp. by 92.86%. His purchase prices were between $8.34 and $11.35, with an estimated average price of $9.8. The impact to his portfolio due to this purchase was 1.57%. His holdings were 13,500,000 shares as of 06/30/2010.

Xerox Corporation is The Document Company and a leader in the global document market, providing document solutions that enhance business productivity. Xerox Corp. has a market cap of $12.43 billion; its shares were traded at around $9.1 with a P/E ratio of 11.12 and P/S ratio of 0.82. The dividend yield of Xerox Corp. stocks is 1.89%. Xerox Corp. had an annual average earning growth of 0.5% over the past 10 years.

Added: Transatlantic Holdings Inc. (TRH)

David Einhorn added to his holdings in Transatlantic Holdings Inc. by 192.95%. His purchase prices were between $44.74 and $53.17, with an estimated average price of $49.03. The impact to his portfolio due to this purchase was 0.91%. His holdings were 952,100 shares as of 06/30/2010.

Transatlantic Holdings, through its wholly-owned subsidiaries, Transatlantic Reinsurance Company, Trans Re Zurich, and Putnam, offers reinsurance capacity for a full range of property and casualty products on a treaty and facultative basis, directly and through brokers, to insurance and reinsurance companies, in both the domestic and international markets. Transatlantic Holdings Inc. has a market cap of $3.02 billion; its shares were traded at around $46.82 with a P/E ratio of 7.74 and P/S ratio of 0.68. The dividend yield of Transatlantic Holdings Inc. stocks is 1.71%.

Added: Ralcorp Holdings Inc. (RAH)

David Einhorn added to his holdings in Ralcorp Holdings Inc. by 30.8%. His purchase prices were between $55.34 and $67.71, with an estimated average price of $62.46. The impact to his portfolio due to this purchase was 0.69%. His holdings were 1,765,854 shares as of 06/30/2010.

Ralcorp Holdings, Inc. is primarily engaged in the manufacturing, distribution and marketing of private label and branded ready-to-eat cereal products and snacks, branded and private label crackers and cookies, and branded baby food and juices. Ralcorp Holdings Inc. has a market cap of $3.11 billion; its shares were traded at around $56.1 with a P/E ratio of 12.39 and P/S ratio of 0.8. Ralcorp Holdings Inc. had an annual average earning growth of 15.6% over the past 10 years. GuruFocus rated Ralcorp Holdings Inc. the business predictability rank of 3.5-star.

Added: Nvr Inc (NVR)

David Einhorn added to his holdings in Nvr Inc by 50.76%. His purchase prices were between $642.83 and $750.5, with an estimated average price of $692.13. The impact to his portfolio due to this purchase was 0.56%. His holdings were 84,000 shares as of 06/30/2010.

NVR Inc. is a holding company that operates in two business segments; the construction and marketing of homes and in financial services. Nvr Inc has a market cap of $3.8 billion; its shares were traded at around $614.59 with a P/E ratio of 16.5 and P/S ratio of 1.42. Nvr Inc had an annual average earning growth of 2.8% over the past 10 years.

Added: Energy Partners Ltd. (EPL)

David Einhorn added to his holdings in Energy Partners Ltd. by 75.6%. His purchase prices were between $11.7 and $14.38, with an estimated average price of $13.07. The impact to his portfolio due to this purchase was 0.28%. His holdings were 1,739,474 shares as of 06/30/2010.

Energy Partners, Ltd. is an independent oil and natural gas exploration and production company based in New Orleans, LA and Houston. Energy Partners Ltd. has a market cap of $427.09 million; its shares were traded at around $10.87 with and P/S ratio of 2.23.

New Purchase: Ensco International Inc. (ESV)

David Einhorn initiated holdings in Ensco International Inc.. His purchase prices were between $34.45 and $51.95, with an estimated average price of $42.39. The impact to his portfolio due to this purchase was 8.78%. His holdings were 7,416,880 shares as of 06/30/2010.

Ensco International plc, formerly ENSCO International Incorporated, is a provider of offshore contract drilling services to the international oil and gas industry. Ensco International Inc. has a market cap of $6.23 billion; its shares were traded at around $43.49 with a P/E ratio of 10.36 and P/S ratio of 3.2. The dividend yield of Ensco International Inc. stocks is 0.97%. Ensco International Inc. had an annual average earning growth of 23.9% over the past 10 years. GuruFocus rated Ensco International Inc. the business predictability rank of 3.5-star.

New Purchase: NCR Corp. (NCR)

David Einhorn initiated holdings in Ncr Corp.. His purchase prices were between $11.72 and $15.93, with an estimated average price of $13.39. The impact to his portfolio due to this purchase was 4.19%. His holdings were 11,468,658 shares as of 06/30/2010.

NCR Corporation is a recognized world leader in providing Relationship Technology solutions for the retail, financial, communications, travel and transportation, and insurance markets. Ncr Corp. has a market cap of $1.99 billion; its shares were traded at around $12.5 with a P/E ratio of 15.3 and P/S ratio of 0.43. Ncr Corp. had an annual average earning growth of 3.7% over the past 10 years.

New Purchase: Apple Inc. (AAPL)

David Einhorn initiated holdings in Apple Inc.. His purchase prices were between $235.86 and $274.074, with an estimated average price of $254.79. The impact to his portfolio due to this purchase was 2.37%. His holdings were 312,500 shares as of 06/30/2010.

Apple Computer, Inc. designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers. Apple Inc. has a market cap of $226.67 billion; its shares were traded at around $249.1 with a P/E ratio of 18.76 and P/S ratio of 5.28. Apple Inc. had an annual average earning growth of 83.1% over the past 5 years.

New Purchase: Lockheed Martin Corp. (LMT)

David Einhorn initiated holdings in Lockheed Martin Corp.. His purchase prices were between $75.15 and $86.92, with an estimated average price of $81.59. The impact to his portfolio due to this purchase was 1.63%. His holdings were 725,000 shares as of 06/30/2010.

Lockheed Martin Corp. is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. Lockheed Martin Corp. has a market cap of $27.18 billion; its shares were traded at around $72.48 with a P/E ratio of 9.51 and P/S ratio of 0.6. The dividend yield of Lockheed Martin Corp. stocks is 3.47%. Lockheed Martin Corp. had an annual average earning growth of 17% over the past 10 years. GuruFocus rated Lockheed Martin Corp. the business predictability rank of 2.5-star.

New Purchase: Furiex Pharmaceuticals Inc. (FURX)

David Einhorn initiated holdings in Furiex Pharmaceuticals Inc.. His purchase prices were between $9.11 and $11.47, with an estimated average price of $10.4. The impact to his portfolio due to this purchase was 0.15%. His holdings were 490,000 shares as of 06/30/2010.

Furiex Pharmaceuticals, Inc. is a drug development collaboration company..

New Purchase: Symmetricom Inc. (SYMM)

David Einhorn initiated holdings in Symmetricom Inc.. His purchase prices were between $5.01 and $7.12, with an estimated average price of $5.76. The impact to his portfolio due to this purchase was 0.12%. His holdings were 799,562 shares as of 06/30/2010.

Symmetricom, Inc. as a worldwide leader in precise time and frequency products and services, Symmetricom provides `Perfect Timing` to customers around the world. Symmetricom Inc. has a market cap of $211.45 million; its shares were traded at around $4.82 with a P/E ratio of 14.61 and P/S ratio of 0.96.

New Purchase: Oritani Financial Corp. (ORIT)

David Einhorn initiated holdings in Oritani Financial Corp.. His purchase prices were between $13.78 and $17.09, with an estimated average price of $15.59. The impact to his portfolio due to this purchase was 0.06%. His holdings were 200,000 shares as of 06/30/2010.

Oritani Financial Corp. is the holding company for Oritani Savings Bank, a savings bank offering a full range of retail and commercial loan and deposit products. Oritani Financial Corp. has a market cap of $534.49 million; its shares were traded at around $9.51 with a P/E ratio of 31.35 and P/S ratio of 3.18. The dividend yield of Oritani Financial Corp. stocks is 3.15%.

Reduced: Flagstar Bancorp Inc. (FBC)

David Einhorn reduced to his holdings in Flagstar Bancorp Inc. by 50%. His sale prices were between $3.44 and $8.395, with an estimated average price of $5.36. The impact to his portfolio due to this sale was -0.08%. David Einhorn still held 1,649,998 shares as of 06/30/2010.

Flagstar Bancorp, Inc. is the holding company for Flagstar Bank, FSB, a federally chartered stock savings bank. Flagstar Bancorp Inc. has a market cap of $420.04 million; its shares were traded at around $2.86 with and P/S ratio of 0.35.

Reduced: Emc Corp. (EMC)

David Einhorn reduced to his holdings in Emc Corp. by 34.96%. His sale prices were between $17.68 and $19.98, with an estimated average price of $18.82. The impact to his portfolio due to this sale was -1.12%. David Einhorn still held 5,790,000 shares as of 06/30/2010.

EMC Corporation and its subsidiaries design, manufacture, market and support a wide range of hardware and software products and provide services for the storage, management, protection and sharing ofelectronic information. Emc Corp. has a market cap of $38.56 billion; its shares were traded at around $18.6875 with a P/E ratio of 22.07 and P/S ratio of 2.75. Emc Corp. had an annual average earning growth of 8.2% over the past 5 years.

Sold Out: Iconix Brand Group Inc. (ICON)

David Einhorn sold out his holdings in Iconix Brand Group Inc.. His sale prices were between $14.43 and $18.6, with an estimated average price of $16.51.

Iconix Brand Group, Inc. is in the business of licensing the CANDIE'S, BONGO, BADGLEY MISCHKA and JOE BOXER trademarks on a variety of footwear, apparel and fashion products. Iconix Brand Group Inc. has a market cap of $1.12 billion; its shares were traded at around $15.45 with a P/E ratio of 11.7 and P/S ratio of 4.81.

Sold Out: Mdc Partners Inc. Cl A (MDCA)

David Einhorn sold out his holdings in Mdc Partners Inc. Cl A. His sale prices were between $10.52 and $12.99, with an estimated average price of $11.96.

MDC is one of the world's marketing communications firms. Mdc Partners Inc. Cl A has a market cap of $345.94 million; its shares were traded at around $12.01 with and P/S ratio of 0.63. The dividend yield of Mdc Partners Inc. Cl A stocks is 3.66%. Mdc Partners Inc. Cl A had an annual average earning growth of 17.1% over the past 5 years.

Sold Out: Coinstar Inc. (CSTR)

David Einhorn sold out his holdings in Coinstar Inc.. His sale prices were between $32.74 and $57.83, with an estimated average price of $46.31.

Coinstar, Inc. operate a national network of self-service coin-counting machines in the U. Coinstar Inc. has a market cap of $1.42 billion; its shares were traded at around $44.62 with a P/E ratio of 36.28 and P/S ratio of 1.24. Coinstar Inc. had an annual average earning growth of 24.4% over the past 10 years. GuruFocus rated Coinstar Inc. the business predictability rank of 4-star.

Sold Out: Symetra Financial Corp. (SYA)

David Einhorn sold out his holdings in Symetra Financial Corp.. His sale prices were between $11.74 and $14.25, with an estimated average price of $12.97.

Symetra Financial Corporation is a diversified financial services company based in Bellevue, Wash. Symetra Financial Corp. has a market cap of $1.27 billion; its shares were traded at around $10.87 with a P/E ratio of 8.24 and P/S ratio of 0.74. The dividend yield of Symetra Financial Corp. stocks is 0.46%.

Sold Out: ATP Oil & Gas Corp. (ATPG)

David Einhorn sold out his holdings in Atp Oil & Gas Corp.. His sale prices were between $8.53 and $22.96, with an estimated average price of $15.3.

ATP OIL & GAS is engaged in the acquisition, development and production of natural gas and oil properties in the outer continental shelf of the Gulf of Mexico, in the shallow-deep waters of the Gulf of Mexico and in the Southern Gas Basin of the U. Atp Oil & Gas Corp. has a market cap of $628.03 million; its shares were traded at around $12.27 with and P/S ratio of 2.01. Atp Oil & Gas Corp. had an annual average earning growth of 17.6% over the past 10 years.

Sold Out: Validus Holdings Ltd (VR)

David Einhorn sold out his holdings in Validus Holdings Ltd. His sale prices were between $23.66 and $27.42, with an estimated average price of $25.08.

Validus Holdings, Ltd., through its principal operating subsidiary Validus Reinsurance, Ltd. Validus Holdings Ltd has a market cap of $3.04 billion; its shares were traded at around $24.61 with a P/E ratio of 9.17 and P/S ratio of 1.57. The dividend yield of Validus Holdings Ltd stocks is 3.58%.

Sold Out: Teradata Corp (TDC)

David Einhorn sold out his holdings in Teradata Corp. His sale prices were between $28.25 and $33.98, with an estimated average price of $31.12.

Teradata Corporation is the world's largest company focused on raising intelligence through data warehousing and enterprise analytics. Teradata Corp has a market cap of $4.97 billion; its shares were traded at around $29.98 with a P/E ratio of 17.63 and P/S ratio of 2.91.

Sold Out: Automatic Data Processing Inc. (ADP)

David Einhorn sold out his holdings in Automatic Data Processing Inc.. His sale prices were between $39.91 and $45.48, with an estimated average price of $42.5.

Automatic Data Processing, Inc. is one of the largest providers of computerized transaction processing, data communication, and information services in the world. Automatic Data Processing Inc. has a market cap of $20.01 billion; its shares were traded at around $39.79 with a P/E ratio of 16.79 and P/S ratio of 2.24. The dividend yield of Automatic Data Processing Inc. stocks is 3.42%. Automatic Data Processing Inc. had an annual average earning growth of 2% over the past 10 years. GuruFocus rated Automatic Data Processing Inc. the business predictability rank of 4-star.

Sold Out: Urs Corp. (URS)

David Einhorn sold out his holdings in Urs Corp.. His sale prices were between $39.59 and $52.82, with an estimated average price of $46.7.

URS Corporation offers a broad range of planning, design, and program and construction management services for transportation, hazardous waste, industrial processing and petrochemical, general building and water/wastewater projects. Urs Corp. has a market cap of $3.08 billion; its shares were traded at around $37.25 with a P/E ratio of 10.94 and P/S ratio of 0.33. Urs Corp. had an annual average earning growth of 5.3% over the past 5 years.


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