Greenlight's Einhorn says fund exited Best Buy, Dell in 2nd qtr
NEW YORK, July 24 (Reuters) - David Einhorn told investors his Greenlight Capital hedge fund sold out of computer maker Dell Inc in the second quarter as the stock "proved to be a disappointment," with non-PC business growth smaller than expected.
Einhorn, in a letter to investors obtained by Reuters, said the fund also exited retailer Best Buy Co "with a loss" as "unexpected problems emerged" that challenged its business. He cited the depletion of cash resources due to a $1.3 billion acquisition, a decline in profits from Best Buy's international business, and the dismissal of its CEO "over his personal conduct."
Greenlight Capital funds posted negative 3.2 percent returns, net of fees, in second quarter, bringing yearly net returns to 3.4 percent, the letter, dated July 23, said.
Einhorn said a short position in Green Mountain Coffee Roasters was a big winner in the quarter, with two other undisclosed short positions also helping performance.