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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.

We like Einhorn and we believe that by imitating the smartest investors, such as Einhorn, investors are more likely to beat the market. Below, we compiled a list of stocks that Einhorn decided to increase his bets during the second quarter.

Company

Ticker

Value (x1,000)

Activity

Return Since June

BEST BUY COMPANY

(NYSE:BBY)

216,340

15%

-23.56%

APPLE INC

(NASDAQ:AAPL)

361,685

29%

15.98%

INGRAM MICRO INC

(NYSE:IM)

68,025

48%

-2.59%

MICROSOFT CORP

(NASDAQ:MSFT)

385,295

63%

2.55%

SEAGATE TECHNOLOGY

(NASDAQ:STX)

185,927

252%

-25.35%

HUNTINGTON INGALLS

(NYSE:HII)

82,456

New

-17.68%

MARATHON OIL CORP

(NYSE:MRO)

76,528

New

-22.55%

AEROPOSTALE INC

(NYSE:ARO)

60,102

New

-40.11%

STATE BANK FINL

(NASDAQ:STBZ)

34,377

New

-16.19%

These stocks returned -6.37% on a weighted average basis, vs. -9.55% for SPY since the end of June. The top two holdings of Einhorn, Apple and Microsoft, had positive returns during the same period, and AAPL even had two-digit return.

Here are the nine stocks Einhorn decided to increase his bets on:

Best Buy Company Inc (BBY): Best Buy is a multinational retailer of consumer electronics, home office products, entertainment products, appliances and related services. Einhorn holds $216 million BBY and he recently increased his position by 15%. BBY has a market cap of 9.27B, a P/E ratio of 8.36, and it lost 23.56% since the end of June. Bill Miller is another main holder of BBY (check out Miller’s top stock picks).

Apple Inc (AAPL): Apple designs, manufactures and markets a range of personal computers, mobile communication and media devices, and portable digital music players, and sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications. Einhorn holds $362 million AAPL and he recently increased his position by 29%. AAPL has a market cap of 361.97B, a P/E ratio of 15.46, and it gained 15.98% since the end of June. Rob Citrone is another main holder of AAPL.

Ingram Micro Inc (IM): Ingram Micro is a global IT wholesale distributor, providing sales, marketing and logistics services for the IT industry worldwide. Einhorn holds $68 million IM and he recently increased his position by 48%. IM has a market cap of 2.80B, a P/E ratio of 9.78, and it lost 2.59% since the end of June. Yale M. Fergang and Robert W. Medway are other main holders of IM.

Microsoft Corp (MSFT): Microsoft Corporation is engaged in developing, licensing and supporting a range of software products and services. Einhorn holds $385 million MSFT and he recently increased his position by 63%. MSFT has a market cap of 224.37B, a P/E ratio of 9.92, and it gained 2.55% since the end of June. This year at the Ira Sohn Investment Conference Einhorn gave a lengthy speech and explained why he is bullish about Microsoft (read his entire speech here).

Seagate Technology (STX): Seagate designs, manufactures, markets and sells hard disk drives. Einhorn holds $186 million in STX, and he recently increased his position by 252%. STX has a market cap of 4.98B, a P/E ratio of 10.91, and it lost 25.35% since the end of June. Andreas Halvorsen is another main holder of STX.

Huntington Ingalls Industries (HII): Huntington Ingalls Industries designs, builds and maintains nuclear and non-nuclear ships for the United States Navy and Coast Guard, and provides aftermarket services for military ships around the globe. Einhorn recently initiated a brand new $82 million in HII. It has a market cap of 1.39B and lost 17.68% since the end of June.

Marathon Oil Corp (MRO): Marathon is an integrated international energy company engaged in exploration and production, oil sands mining, integrated gas, and refining, marketing and transportation. Einhorn recently initiated a brand new $77 million in MRO. It has a market cap of 17.98B, a P/E ratio of 7.91, and lost 22.55% since the end of June. Eric Mindich is another main holder of MRO (check out Mindich’s favorite stocks).

Aeropostale Inc (ARO): Aeropostale is a mall-based specialty retailer of casual apparel and accessories, principally targeting 14- to 17 year-old-young women and men through its Aeropostale stores and 7- to 12-year-old kids through its P.S. from Aeropostale stores. Einhorn recently initiated a brand new $60 million stake in ARO. It has a market cap of 870.34M, a P/E ratio of 5.96, and lost 40.11% since the end of June. Bill Miller is another main holder of ARO.

State Bank Financial Corp (STBZ): State Bank offers a range of community banking services to individuals and businesses within its middle Georgia and metropolitan Atlanta markets. Einhorn recently initiated a brand new $34 million position in STBZ. It has a market cap of 433.72M, a P/E ratio of 10.85, and lost 16.19% since the end of June.

Source: 9 Bullish New Stock Picks From David Einhorn