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Why hedge fund rock star David Einhorn picked Apple over Microsoft

“Known as a rock star David Einhorn is one of the hedge fund industry’s few managers that can truly move the market. Whether it was his high profile short thesis on Chipotle last year, his bearish call on Green Mountain Coffee in 2011, or his St. Joe escapade one year before that, it seems like the manager of Greenlight Capital always has a meteoric effect on whatever stock is in his sights,” Jake Mann writes for Seeking Alpha.

“It’s not fair to think of Einhorn exclusively as a short-seller. His long-term Apple stake, for example, has received extra coverage in 2013 for his push for more value creation at Cupertino,” Mann writes. “Although he hasn’t gotten exactly what he wanted – Einhorn originally pushed for a type of preferred stock he called ‘iPrefs”‘ – Apple did announce a dividend boost earlier this year. An expansion of its share buyback program to a total of $60 billion has also gotten some bulls clamoring, and Carl Icahn’s recent move into Apple stock has only helped the situation.”

Mann writes, “David Einhorn and Greenlight Capital do not, however, feel the same way about Microsoft.”

Read more in the full article here.

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