David Einhorn's Greenlight Capital Files 13G's on Jones Apparel (JNY) & Harman (HAR) ~ market folly

Tuesday, March 17, 2009

David Einhorn's Greenlight Capital Files 13G's on Jones Apparel (JNY) & Harman (HAR)

In 2 separate 13G filings made with the SEC, David Einhorn's Greenlight Capital has disclosed:

  • A 5.1% ownership stake in Harman (HAR) with 2,960,060 shares beneficially owned
  • A 5.5% ownership stake in Jones Apparel (JNY) with 4,657,300 shares

These are both brand new positions, as neither were present in their latest 13F filing, as noted in Greenlight's portfolio. The Harman filing was made due to activity on March 4th, 2009, while the Jones activity was the following day. Einhorn has been pretty busy adding various holdings over the past few months, including Gold and Gold Miners, among other things.

Greenlight Capital is a $6 billion fund ran by David Einhorn that specializes in spin-offs and value investing and has seen annual returns of over 20%. Einhorn's name has been popping up in the media a lot over the past year, as he talked about his well documented short position in Lehman Brothers (LEH). And, while that position paid off handsomely for him, it barely offset losses he experienced from other positions. He was caught in the massive Volkswagen short squeeze as he detailed in one of his latest investor letters. Einhorn has also recently detailed the saga between his fund and Allied Capital, a company he shorted, in his book Fooling Some of the People All of the Time: A Long Short Story. It gives you an inside perspective as to how Greenlight constructs and researches their investment theses and we highly recommend it. Greenlight approaches things by identifying mispricings in the markets and going from there.

Taken from Google Finance,

Jones Apparel is "a designer, marketer and wholesaler of branded apparel, footwear and accessories. The Company markets its products to the consumers, through a chain of specialty retail and stores and through the e-commerce Web sites."

Harman is "engaged in the development, manufacture and marketing of high-fidelity audio products and electronic systems. The Company has developed, both internally and through a series of acquisitions, a range of product offerings. It operates in three segments: Automotive, Consumer and Professional."

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