Jan 23 (Reuters) - Hedge fund manager David Einhorn is sticking with what he likes and told investors that he bought more shares of Marvell Technology, which had been Greenlight Capital’s biggest loser in 2012.
“We expect the shares to sprint higher in 2013,” Einhorn wrote to his investors in a five-page letter where he reflected on the ups and downs of 2012 and what he hopes will lie ahead.
Disappointing earnings and a $1 billion award in a patent infringement suit sent shares of the semiconductor company tumbling last year but Einhorn is certain that that award will be significantly reduced or eliminated altogether.
“Though we would love to admit we are wrong, sell the stock and move on, we continue to like the opportunity here,” he wrote, adding that Marvell is on the cusp of a “large product transition,” which has not been fully valued.
Einhorn had told investors some time ago that his firm earned an 8 percent return, while the Standard & Poor’s 500 index gained 13 percent. He said the year was not a “catastrophe” but falls short of his goals.