David Einhorn Boosts Marvell Technology Position ~ market folly

Monday, July 30, 2012

David Einhorn Boosts Marvell Technology Position

David Einhorn's hedge fund Greenlight Capital filed a 13G with the SEC regarding its position in Marvell Technology (MRVL).  Per the filing, Einhorn has revealed a 5.3% ownership stake in the company with 29,595,179 shares.

This means he's boosted his holdings by 61% since the end of the first quarter.  The filing was made due to portfolio activity on July 16th.  Einhorn talked about his stake in MRVL in Greenlight's Q2 letter.

He likes that the company only trades at "roughly 5x next year's earnings net of the cash on the balance sheet."  Einhorn hopes the company's latest repurchase program will be aggressive and he used weakness in shares to add to his position.  Over the past three months, shares are down 24%.

Per Google Finance, Marvell Technology is "a fabless semiconductor provider of application-specific standard products.The Company develops complex System-on-a-Chip (SoC) devices. Its product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceivers (PHY), mobile handsets and other consumer electronics, wireless networking, personal area networking, Ethernet-based personal computer (PC) connectivity, control plane communications controllers, video-image processing and power management solutions. Its products serve diverse applications used in carrier, metropolitan, enterprise and PC-client data communications and storage systems."

For the latest on this hedgie, head to Einhorn on Apple, Green Mountain Coffee and Amazon (interview).

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