Einhorn cuts stake in Microsoft

BOSTON Tue May 15, 2012 5:17pm EDT

David Einhorn, president of Greenlight Capital, speaks at the Reuters Investment Outlook Summit in New York December 7, 2010. REUTERS/Brendan McDermid

David Einhorn, president of Greenlight Capital, speaks at the Reuters Investment Outlook Summit in New York December 7, 2010.

Credit: Reuters/Brendan McDermid

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BOSTON (Reuters) - A year ago hedge fund investor David Einhorn very publicly urged Microsoft to get rid of its chief executive. Now he has dramatically gotten rid of more than half of his stake in the huge software company.

Einhorn's Greenlight Capital held 7.5 million Microsoft Corp shares at the end of the first quarter, down from the 15.1 million the New York-based hedge fund owned at the end of the fourth quarter. Most fund managers are required to reveal their biggest stock positions some 45 days after the quarter ends.

Known for his outspoken style and sharp analysis, Einhorn urged Microsoft's chief executive, Steve Ballmer, to step down, saying the company was stuck in the past. He made his case against Ballmer a year ago at the Ira Sohn Conference, coming out with the most pointed comments to date against Ballmer.

Still, Ballmer survived as CEO and Einhorn, who made his name by warning the world about Lehman Brothers' poor financial health before the investment bank collapsed, sold millions of shares, a regulatory filing released on Tuesday shows.

The news comes on the eve of the Ira Sohn conference, where Einhorn is scheduled to present his current best investment ideas.

(Reporting by Svea Herbst-Bayliss; editing by Andre Grenon)

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Comments (1)
Why would he have invested in such a terrible company anyways, displays his portfolio as worthless. MSFT does wor4st than a regular saving account at a local bank.

I remember his comments, and he should make another about his current situation on selling this many shares. He knows something and should enlighten the world to his information.

MSFT is not a good stock to invest. Win8 will be another flop, and they have nothing on the radar fo the next five years. The latest phone relase is not catching on and their few manuyfacturers are bailing on the company as well. If the vendors and manufactures stop building their products doub they have anything left. Why would a hardware maker even care since every company that partners with them usually tanks just like them. They get no love for thier products and the quality is under par. The past five ears they have relased nothing worth buying.

May 15, 2012 11:14pm EDT  --  Report as abuse
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