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David Einhorn founded Greenlight Capital with $1 million in 1996. As a long-short value-oriented hedge fund, Greenlight has historically generated more than a 20% annualized net return for its partners and investors. Einhorn has a B.A. in government from Cornell University, where he graduated summa cum laude with distinction in all subjects.

Whitney Tilson is the founder and managing partner of T2 Partners LLC. He has a bachelor's degree in government from Harvard and an M.B.A. with high distinction from Harvard Business School. Before launching his investment career in 1999, Tilson spent five years working with Michael E. Porter, a professor at HBS, studying the competitiveness of inner cities and inner-city-based companies nationwide.

Einhorn and Tilson are smart value investors with successful track records. We believe investors are more likely to beat the market by imitating their stock picks and investment strategies.

Here is a list of five stocks held by both their hedge funds.

Company

Ticker

Value held by T2 (in $1,000s)

Value held by Greenlight (in $1,000s)

Return since June

SEAGATE TECH

STX

13,629

185,927

-29.86%

MICROSOFT CORP

MSFT

11,532

385,295

-0.39%

B P PLC

BP

7,143

109,271

-17.92%

ASPEN INSURANCE HOLDINGS

AHL

3,216

106,522

-10.44%

REPUBLIC AIRWAYS HOLDINGS

RJET

1,143

18,634

-47.44%

Average

-21.21%

The average return of these 5 stocks since the end of June is -21.21% vs. -12.16% for the SPY during the same period. Although most of the stocks underperformed the market, we still believe in these two hedge funds because of their previous performance and their experienced managers.

Here are details on the 5 stocks held by both funds:

Seagate Technology (NASDAQ:STX) is a company that designs, manufactures, markets and sells hard disk drives. STX returned -29.86% since the end of June. It has a market cap of $4.64B and a P/E ratio of 10.18. T2 holds $13.6 million, while Greenlight holds $186 million in STX. Andreas Halvorsen is another main holder of STX.

Microsoft Corp (NASDAQ:MSFT) is engaged in developing, licensing and supporting a range of software products and services. It also designs and sells hardware and delivers online advertising to its customers. MSFT has only lost 0.39% since the end of June vs -12.16% for SPY. It has a market cap of $213.18B and a P/E ratio of 9.44. T2 holds $11.5 million, while Greenlight holds $385 million in MSFT. One of the reasons for MSFT’s relatively strong performance is the speech Einhorn gave at the Ira Sohn Investor Conference. Microsoft was one of the most popular stocks among hedge funds as of the end of June.

BP Plc (NYSE:BP) is an international oil and gas company, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products. BP returned -17.92% since the end of June. It has a market cap of $113.52B and a P/E ratio of 5.68. T2 holds $7.1 million, while Greenlight holds $109 million in BP. Kenneth Mario Garschina holds the largest BP position.

Aspen Insurance Holdings Ltd (NYSE:AHL) conducts insurance and reinsurance business. AHL returned -10.44% since the end of June. It has a market cap of $1.61B and a P/E ratio of 644.64. T2 holds $3.2 million, while Greenlight holds $107 million in AHL. Chuck Royce is another main holder of AHL.

Republic Airways Holdings Inc (NASDAQ:RJET) offers scheduled passenger services through its wholly owned operating subsidiaries. RJET lost -47% since the end of June and has a market cap of $131.64M. T2 holds $1.1 million, while Greenlight holds $18.6 million in RJET. Jay Petschek and Steven Major are other main holders of RJET.

Disclosure: I am long MSFT.

Source: 5 Stocks Both David Einhorn And Whitney Tilson Love