Greenlight Capital Short ARM Holdings ~ market folly

Friday, July 24, 2015

Greenlight Capital Short ARM Holdings

David Einhorn's hedge fund Greenlight Capital is short shares of ARM Holdings traded in the UK.  Per short selling disclosure rules, funds must publicly disclose when they are net short 0.5% of a company's shares or greater.

As of July 21st, Greenlight was net short 1.36% of ARM Holdings shares.  This is up from a 1.23% position on July 10th and a 1.11% net short position on July 8th, 2015.

Per Google Finance, ARM Holdings is "a United Kingdom-based company engaged in designing of microprocessors, physical intellectual property (IP) and related technology and software, and sale of development tools. The Company's offers products, such as 16/32/64-bit RISC microprocessors, data engines, graphics processors, digital libraries, embedded memories, peripherals, software and development tools, as well as analog functions and high-speed connectivity products. The Company's product offering includes microprocessor Cores, physical IP, development tools and support and maintenance services. ARM licenses and sells its technology and products to international electronics companies, which in turn manufacture, market and sell microprocessors, application-specific integrated circuits (ASICs), application-specific standard processors (ASSPs) and microcontrollers (MCUs) based on ARM's technology to systems companies for incorporation into a variety of end products."

While this could be an alpha short, it could also potentially be a hedge to Greenlight's tech exposure, as they've been long names like Applied Materials (AMAT), Micron (MU), Apple (AAPL), ON Semiconductor (ON), and SunEdison (SUNE).

For more from this hedge fund, we've posted Greenlight's Q2 letter here and just yesterday highlighted a stock Greenlight's been buying recently.

To see other hedge fund short positions, click that link to scroll through the recent updates.

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