David Einhorn Buys Apple, Yahoo, Yelp

Guru's largest acquisitions in the 1st quarter

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Jun 07, 2016
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David Einhorn (Trades, Portfolio) is president of Greenlight Capital, a value-oriented investment adviser. During the first quarter he bought shares in the following stocks:

Einhorn increased his stake Apple Inc. (AAPL) by 30.68% with an impact of 3.56% 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.

During the second quarter revenue was $50.6 billion and quarterly net income was $1.90 per diluted share compared to revenue of $58 billion and net income of $2.33 per diluted share in the year-ago quarter.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10 with ROE of 40.05% and ROA of 17.80% that are outperforming 97% of the companies in the Global Consumer Electronics industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.69 that is below the industry median of 1.43.

Ken Fisher (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 0.21% of outstanding shares followed by Spiros Segalas (Trades, Portfolio) with 0.21%, Warren Buffett (Trades, Portfolio) with 0.18%, Pioneer Investments (Trades, Portfolio) with 0.16%, Jeremy Grantham (Trades, Portfolio) with 0.13% and Chase Coleman (Trades, Portfolio) with 0.1%.

The guru acquired 6,290,000 shares in Hatteras Financial Corp. (HTS) with an impact of 1.53% on the portfolio.

The company invests in adjustable-rate and hybrid adjustable-rate single-family residential mortgage pass-through securities guaranteed or issued by a U.S. government agency.

Net interest margin for the fourth quarter was $56.1 million compared to $51.7 million for the last quarter of a year before. The company’s net interest spread increased to 1.42% compared to 1.19% for the third quarter, driven by higher portfolio yield.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of -0.31% and ROA of 0.09% that are underperforming 83% of the companies in the Global REIT - Residential industry. Financial strength has a rating of 6 out of 10 with cash to debt of 5.69 that is above the industry median of 0.06.

The company's second-largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 3.91% of outstanding shares.

The guru increased his shares in Yahoo! Inc. (YHOO) by 117.68% with an impact of 1.49% on the portfolio.

It is a technology company that offers search, content and communication on mobile phone, tablet or desktop.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of -14.64% and ROA of -9.69% that are underperforming 78% of the companies in the Global Internet Content & Information industry. Financial strength has a rating of 6 out of 10 with cash to debt of 4.78 that is below the industry median of 14.39.

PRIMECAP Management (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.63% of outstanding shares followed by John Burbank (Trades, Portfolio) with 0.49%, First Pacific Advisors (Trades, Portfolio) with 0.41%, Steven Romick (Trades, Portfolio) with 0.36%, Steven Cohen (Trades, Portfolio) with 0.28%, Mario Gabelli (Trades, Portfolio) with 0.08% and Paul Tudor Jones (Trades, Portfolio) with 0.06%.

The guru raised his shares in AerCap Holdings NVĂ‚ (AER) by 22.72% with an impact of 1.1% on the portfolio.

The company provides aircraft leasing and aviation finance services. Its activities also include aircraft asset management, corporate services, remarketing of aircraft, collecting rental and maintenance payments and monitoring aircraft maintenance.

First quarter adjusted net income was $301.6 million, compared with $302.1 million for the same period in 2015, and basic earnings per share were $1.14 compared with $1.47 for the same period of a year before.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 13.38% that is outperforming and ROA of 2.49% that is underperforming 56% of the companies in the Global Airports & Air Services industry. Financial strength has a rating of 7 out of 10 with cash to debt of 0.10 that is far below the industry median of 0.37.

Another shareholder among the gurus is Donald Smith (Trades, Portfolio) with 4.58% of outstanding shares followed by Richard Perry (Trades, Portfolio) with 3.02%, Leon Cooperman (Trades, Portfolio) with 2.5%, Louis Moore Bacon (Trades, Portfolio) with 0.44% and Grantham with 0.05%.

The guru bought 614,770 shares in PVH Corp. (PVH) with an impact of 1.03% on the portfolio.

The company is an apparel company that designs and markets branded dress shirts, neckwear, sportswear, jeans wear, intimate apparel, swim products and, to a lesser extent, footwear and other related products.

First-quarter revenue increased 3% on a constant currency basis and EPS was $1.50 on a non-GAAP basis, inclusive of a 50 cents per share negative impact compared to the prior year related to foreign currency exchange rates, exceeding previous guidance of $1.40 to $1.45.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 15.12% and ROA of 6.40% that are outperforming 64% of the companies in the Global Apparel Manufacturing industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.12 that is below the industry median of 1.47.

Sarah Ketterer (Trades, Portfolio) is the company's largest shareholder among the gurus with 2.04% of outstanding shares followed by Michael Dell (Trades, Portfolio) with 1.18%, Ken Heebner (Trades, Portfolio) with 0.34%, Joel Greenblatt (Trades, Portfolio) with 0.2%, John Keeley (Trades, Portfolio) with 0.1% and Cooperman with 0.08%.

The guru raised his shares in American Capital Agency Corp. (AGNC) by 209.68% with an impact of 1.03% on the portfolio.

The company is a real estate investment trust that invests exclusively in residential mortgage pass-through securities and collateralized mortgage obligations on a leveraged basis.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of -3.96% and ROA of -0.48% that are underperforming 90% of the companies in the Global REIT - Residential industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.31 that is far below the industry median of 0.06.

Simons is the second-largest shareholder among the gurus with 0.63% of outstanding shares followed by Charles de Vaulx (Trades, Portfolio) with 0.34% and RS Investment Management (Trades, Portfolio) with 0.18%.

Einhorn increased his stake in Yelp Inc. (YELP) by 743.79% with an impact of 0.96% on the portfolio.

The company operates a local search website that connects people with local businesses. It provides local advertising, brand advertising and other services.

Net revenue for the first quarter grew 34% and cumulative reviews grew 31% year over year. The company reported 34% growth for App Unique Devices.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with ROE of -6.85% and ROA of -6.28% that are underperforming 71% of the companies in the Global Internet Content & Information industry. Financial strength has a rating of 7 out of 10 with no debt.

Lee Ainslie (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.71% of outstanding shares followed by Burbank with 0.85%, Ruane Cunniff (Trades, Portfolio) with 0.77% and Fisher with 0.5%.

The guru raised his shares in General Motors Co. (GM) by 9.86% with an impact of 0.73% on the portfolio.

The company designs, builds and sells cars, trucks and automobile parts. It also provides automotive financing services through General Motors Financial Company Inc.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of 28.61% and ROA of 5.61% that are outperforming 62% of the companies in the Global Auto Manufacturers industry. Financial strength has a rating of 7 out of 10 with cash to debt of 0.30 that is below the industry median of 0.72.

The largest shareholder among the gurus is Buffett with 3.25% of outstanding shares followed by HOTCHKIS & WILEY with 0.72%, 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% and Grantham with 0.22%.

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