David Einhorn Buys State Bank Financial (STBZ), Updates MI Developments (MIM) Stake ~ market folly

Thursday, February 3, 2011

David Einhorn Buys State Bank Financial (STBZ), Updates MI Developments (MIM) Stake

David Einhorn's hedge fund Greenlight Capital just filed two separate 13G's with the SEC. First, Einhorn has disclosed a brand new position in State Bank Financial (STBZ). Due to portfolio activity on December 27th, 2010, Greenlight shows a 6.6% ownership stake with 2,100,000 shares.

As we've detailed previously, the hedge fund has been somewhat busy as of late. They've started a new stake in BP (BP) and bought Sprint Nextel (S) as well.

Second, in the most recent wave of developments, Greenlight Capital has also filed a 13G regarding its position in MI Developments (MIM). Einhorn has disclosed a 12.3% ownership stake in MIM with 5,655,235 shares. This is the same amount of shares Greenlight owned back on September 30th, 2010 in their third quarter 13F filing.

So, their position size in MIM remains unchanged. In recent developments, the company has reached an agreement that ends Canadian billionaire Frank Stronach's control of MIM. This agreement eliminates the company's dual class structure (Stronach currently controls 57% of the vote). Stronach will cede control of MI Developments and $20 million in working capital in exchange for various assets including horse racing and gaming.

For more updates from the hedge fund manager, be sure to read Greenlight's year-end letter.

Per Yahoo Finance, State Bank Financial Corporation "operates as the holding company for State Bank and Trust Company that provides community banking services to individuals and businesses in the middle Georgia and metropolitan Atlanta markets."

Per Google Finance, MI Developments is "a real estate operating company. The Company is engaged in the acquisition, development, construction, leasing, management and ownership of an industrial rental portfolio leased primarily to Magna and its automotive operating units. The Company also owns land for industrial development and own and acquire land that it intends to develop for mixed-use and residential projects."

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