David Einhorn (Trades, Portfolio) is president of Greenlight Capital, a value-oriented investment advisor. He sold many stocks during the fourth quarter and the following are the sales with the highest impact on his portfolio.
He reduced his stake in Apple Inc. (AAPL) by 44.02% with an impact of -9.04% on the portfolio.
The company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, accessories, networking solutions, and third-party digital content and applications. For Apple, 2015 was its most successful year ever, with revenue growing 28% to nearly $234 billion. Fourth quarter gross margin was between 39% and 40%.
GuruFocus gives the stock a profitability and growth rating of 9 out of 10 with strong returns of ROE of 42.94% and ROA of 19.47% that are over performing 97% of the companies in the Global Consumer Electronics industry. Financial strength has a rating of 6 out of 10, with a cash-to-debt of 0.61 that is far below the industry median of 1.34.
The company’s largest shareholder among the gurus is Carl Icahn (Trades, Portfolio) with 0.83% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.2%, Chase Coleman (Trades, Portfolio) with 0.19%, Pioneer Investments (Trades, Portfolio) with 0.14% and Jeremy Grantham (Trades, Portfolio) with 0.13%.
The investor closed his stake in Micron Technology Inc. (MU) with an impact of -3.05% on the portfolio.
The company manufactures and markets a range of DRAM, NAND Flash and NOR Flash memory, as well as other memory technologies, packaging solutions and semiconductor systems for use in computing, consumer, networking, automotive, industrial, embedded and mobile products.Â
GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with strong returns of ROE of 17.18% and ROA of 8.76% that are over performing 78% of the companies in the Global Semiconductor Memory industry. Financial strength has a rating of 7 out of 10, with a cash-to-debt of 0.49 that is far below the industry median of 1.62.
The company’s largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 4.93% of outstanding shares, followed by Donald Smith (Trades, Portfolio) with 1.36%, Pioneer Investments (Trades, Portfolio) with 0.16%, Seth Klarman (Trades, Portfolio) with 0.1%, Steven Cohen (Trades, Portfolio) with 0.05%, Ray Dalio (Trades, Portfolio) with 0.04%, Whitney Tilson (Trades, Portfolio) with 0.02% and Lee Ainslie (Trades, Portfolio) with 0.01%.
Einhorn reduced his position in Chicago Bridge & Iron Co NVÂ (CBI) by 53.88% with an impact of -2.65% on the portfolio.
It provides conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management and environmental services to customers in the energy infrastructure market throughout the world, and is a provider of diversified government services. Fourth quarter adjusted net income was $1.56 per diluted share and adjusted operating income was 8.5% of revenue. Throughout 2015 the company continued to capitalize on the competitiveness of its business model and completed strategic milestones to strengthen its ability to deliver shareholder value.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. Financial strength has a rating of 6 out of 10, with a cash-to-debt of 0.21 that is below industry median of 0.75.
Einhorn is the largest shareholder among the gurus with 3.3% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 1.33%, Joel Greenblatt (Trades, Portfolio) with 0.99%, Arnold Van Den Berg (Trades, Portfolio) with 0.69%, Richard Snow (Trades, Portfolio) with 0.24%, Jim Simons (Trades, Portfolio) with 0.17% and PRIMECAP Management (Trades, Portfolio) with 0.11%.
Einhorn closed his stake in Bank of New York Mellon Corp. (BK) with an impact of -2.6% on the portfolio.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with positive ROE of 7.97% and ROA of 0.81% that is under performing 60% of the companies in the Global Asset Management industry. Financial strength has a rating of 4 out of 10, with a cash-to-debt of 6.11.
The company’s largest shareholder among the gurus is Dodge & Cox with 5.05% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 2.17%, Chris Davis (Trades, Portfolio) with 2.11%, Warren Buffett (Trades, Portfolio) with 1.87%, Andreas Halvorsen (Trades, Portfolio) with 0.82%, Bill Nygren (Trades, Portfolio) with 0.6%, Mario Gabelli (Trades, Portfolio) with 0.57%, Donald Yacktman (Trades, Portfolio) with 0.55% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.45%.
Einhorn reduced his position in ON Semiconductor Corp. (ON) by 81.84% with an impact of -2.21% on the portfolio.
The company manufactures power management and motor driver semiconductor components control, convert, protect and monitor the supply of power to the different elements within a wide variety of electronic devices. The company delivered strong performance in the fourth quarter by exercising robust cost discipline in times of heightened macroeconomic uncertainty and softening demand. In 2015, it significantly expanded its footprint in its key strategic markets and returned approximately $348 million to shareholders through the share repurchase program.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with strong returns ROE of 12.89% and ROA of 5.34% that are over performing 63% of the companies in the Global Semiconductors industry. Financial strength has a rating of 5 out of 10, with a cash-to-debt of 0.44 that is below the industry median of 1.62.
Richard Pzena (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.71% of outstanding shares, followed by HOTCHKIS & WILEY with 2.37%, Pioneer Investments (Trades, Portfolio) with 0.64%, Ronald Muhlenkamp (Trades, Portfolio) with 0.31%, Jim Simons (Trades, Portfolio) with 0.23% and Steven Cohen (Trades, Portfolio) with 0.06%.
The investor reduced his stake in AECOMÂ (ACM) by 50% and with an impact of -1.48% on the portfolio.
The company is a provider of professional technical and management support services for public and private clients around the world. It provides planning, consulting, architectural and engineering design, and program and construction management services for a range of projects, including highways, airports, bridges, mass transit systems, government and commercial buildings, water and wastewater facilities and power transmission and distribution.
GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with negative returns of ROE of -1.05% and ROA of -0.26% that are under performing 79% of the companies in the Global Engineering & Construction industry. Financial strength has a rating of 4 out of 10, with a cash-to-debt of 0.15 that is below the industry median of 0.75.
The company’s largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 4.18% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 1.73%, Jeremy Grantham (Trades, Portfolio) with 0.16%, Joel Greenblatt (Trades, Portfolio) with 0.05% and Scott Black (Trades, Portfolio) with 0.02%.
Einhorn exited his position in Santander Consumer USA Holdings Inc. (SC) with an impact of -1.29% on the portfolio.
The company is engaged in indirect origination of retail installment contracts through manufacturer-franchised dealers in connection with its sale of used and new automobiles and light-duty trucks to retail consumers.Â
GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with strong returns ROE of 21.17% and ROA of 2.47% that are over performing 90% of the companies in the Global Specialty Finance industry. Financial strength has a rating of 4 out of 10, with a cash-to-debt of 0.12.
Lee Ainslie (Trades, Portfolio) is the largest shareholder of the company among the gurus with 3.94% of outstanding shares, followed by HOTCHKIS & WILEY with 0.47%, Julian Robertson (Trades, Portfolio) with 0.31% and Joel Greenblatt (Trades, Portfolio) with 0.01%.
Einhorn reduced his stake in General Motors Co. (GM) by 14.57% and with an impact of -1.18% on the portfolio.
The company designs, builds and sell cars, trucks and automobile parts. The company also provides automotive financing services through General Motors Financial Company.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with easy returns of ROE of 26.69% and ROA of 5.23% that are over performing 59% of the companies in the Global Auto Manufacturers industry. Financial strength has a rating of 6 out of 10, with a cash-to-debt of 0.37 that is below the industry median of 0.65.
The company’s largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 3.21% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 0.89%, David Tepper (Trades, Portfolio) with 0.81%, HOTCHKIS & WILEY with 0.73%, Bill Nygren (Trades, Portfolio) with 0.5% T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.31%, NWQ Managers (Trades, Portfolio) with 0.23%, Jeremy Grantham (Trades, Portfolio) with 0.13% and Ken Heebner (Trades, Portfolio) with 0.09%.
