David Einhorn’s Greenlight Capital Inc. sold its entire stake in General Motors Co. during the first quarter, a period when the carmaker spent $1.3 billion related to the recall of millions of vehicles.
Greenlight liquidated about 17 million GM shares, worth about $697 million, as of March 31, according to a filing with the Securities and Exchange Commission. The firm also sold its entire position, worth $2.4 million, in Delphi Automotive Plc. (DLPH) The parts maker generates about 17 percent of its revenue from business with GM, according to data compiled by Bloomberg.
GM shares plunged 16 percent in the first quarter, the biggest drop in almost two years. The Detroit-based automaker began recalling in February vehicles with faulty ignition switches linked to at least 13 deaths. GM called back another 2.7 million vehicles today, bringing its total this year to 11.2 million, the most ever for the company.
Greenlight also sold $275 million in Apple Inc., reducing his stake to $1.1 billion, or 16 percent of his portfolio, the fund’s largest holding. It also cut stakes in Micron Technology Inc. and Marvell Technology Group Ltd., the second-and third-largest holdings.
Einhorn warned in an April letter to investors of a bubble in technology stocks before later clarifying his stance by saying he’s bullish on the industry and that companies including Apple look underpriced.
Greenlight boosted his position in SunEdison Inc. by $206 million and now holds 4.4 percent of the solar-panel installer’s shares, according to the filing.