(Market Realist) According to Reuters, Einhorn informed investors that he sold out of drugmakers like Bayer, Mylan, and Perrigo last year.
Einhorn’s bet on Apple turned out well
Another key exit for the fund in 2018 was Apple. Greenlight Capital exited its position in Apple in the third quarter of 2018. The fund first bought a stake in Apple in 2010 and increased its position in the stock eventually. In his Q3 2018 letter to shareholders, Einhorn said he sold off the remaining Apple stake due to its heightened valuation and growing fear of retaliation in response to US tariffs. As reported by CNBC, he added, “We are somewhat worried about Chinese retaliation against America’s trade policies.”
While many of Greenlight’s bets in 2018 didn’t turn out well, Apple surely was not one of them. Between Greenlight’s exit from Apple on August 31, 2018, and the end of 2018, the stock fell 31%. Einhorn’s decision to exit Apple is in stark contrast to Warren Buffett’s decision to continue to increase his stake in the stock.
Covering shorts
In addition to exiting his long positions in some stocks, Einhorn also covered some of his short positions in 2018 including Core Laboratories and oil frackers. The fund manager, however, remains short Tesla.
