David Einhorn Buys Seagate Technology (STX), Sells Various Stocks

ZeroHedge posted up David Einhorn & Greenlight Capital's Q2 investor letter which reveals that the hedge fund was down 2.5% for the quarter and is now down 5% for the year.

Greenlight noted that the US economy has continued to soften as energy and food prices eroded consumer purchasing power. At the same time, Greenlight points to strong corporate earnings as a positive.

Bought Seagate Technology (STX)

During the quarter, Einhorn's hedge fund saw notable portfolio turnover. Greenlight built a "medium sized long position" in Seagate Technology (STX) with an average purchase price of $16.06 a share (STX currently trades around $16.90). The current issue of our Hedge Fund Wisdom newsletter features an analysis of STX for those interested.

Sold Positions

Greenlight also sold completely out of its position in Cardinal Health (CAH). At the same time, they continue to hold a large position in CAH's spin-off, CareFusion (CFN). You can also see the investment thesis on CFN in a free sample of our newsletter.

Einhorn's fund also sold out of CIT Group (CIT), Yahoo! (YHOO), Vicat SA (France: VCT), MI Developments (MIM), MDC Holdings (MDC), and Xerox (XRX). They also covered their short position in LED-maker Cree (CREE).

While Einhorn sold out of CIT Group, we noted last week that Dan Loeb's Third Point continues to hold CIT as one of their largest positions.

Given that Greenlight sold so many positions, it will be interested to see if they've put that capital to work elsewhere or have merely raised cash levels as a form of protection. We've highlighted one buy as Greenlight purchased Playtech (LON:PTEC) shares. Embedded below is Greenlight's Q2 letter:



If the embedded doc doesn't work, you can view/download it here.

For more from Einhorn, be sure to check out his presentation from the Ira Sohn Conference.

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."