Our thesis for our short position in ARM Holdings (ARM, Financial) was that falling chip prices,slowing smartphone growth and more competition from Intel would limit ARM’s potentialroyalty pool. Two of the three have occurred, but Intel’s progress has been disappointing.Also, ARM was more successful than we expected in offsetting its problems by increasing theroyalty rate it charges its customers. We covered the position at a small loss and moved on.
From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.
