David Einhorn, founder and president of Greenlight CapitalMIKE SEGAR
Hedge fund manager David Einhorn thought he saw value in Research In Motion Ltd. late last year, but already it appears he's reconsidering.
Mr. Einhorn's Greenlight Capital bought 3 million shares of RIM in the fourth quarter, establishing a position, according to securities filings. In the first quarter, that position was down by about half, to 1.5 million shares, according to the latest disclosure of Greenlight's holdings.
That suggests Mr. Einhorn's dalliance with RIM cost his fund about $7.5-million, as the stock declined from a trading range around $20 in the fourth quarter to about $15 in the first quarter.
It's not a big loss for Mr. Einhorn, but it's a bit of a blow to RIM. Mr. Einhorn's position in RIM had created a hint of a buzz for the company when it was disclosed in February, leading to a decent pop in the stock. After all, Mr. Einhorn also owned Apple and Microsoft, so including RIM in his stable of tech companies seemed to signal that the value-hunting manager had seem some hope for the mobile phone maker.
There's some comfort in the fact that RIM was not alone. Mr. Einhorn trimmed stakes in many of his technology holdings in the quarter.