Einhorn Doubles Down on Handbag Maker Capri After Takeover Deal Scuttled
- His firm adds to holding after FTC halts $8.5 billion takeover
- Sees room for comeback, deal potential for Jimmy Choo, Versace
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When a US judge unexpectedly blocked Capri Holdings Ltd.’s takeover by rival Tapestry Inc. in October, stunned hedge fund managers ran for the exits as the handbag maker’s stock plunged. For billionaire David Einhorn’s Greenlight Capital, it was a chance to double down.
After suffering what it called a “moderate loss” on its Capri deal bet, Greenlight increased its position, wagering that the battered shares will stage a recovery based on the company’s own merits. The revelation came in the firm’s fourth-quarter investor letter, which was viewed by Bloomberg News.