David Einhorn's Greenlight Capital returned 7.9% after fees in Q2, bringing its YTD return to 6.4%. The S&P 500 returned 5.2% in Q2 and 7.1% YTD.
Among the fund's biggest gainers was Micron (MU -1.2%), with Einhorn noting last year's spike in DRAM prices turning out to not be a blip, and that consensus estimates remain too low - get ready for more earnings surprises and multiple expansion, he says.
"Nothing could be further from the truth," says Einhorn referring to media reports that he believes all tech is in a bubble. Among Greenlight's largest positions are Micron, Apple, Lam Research, and Marvell Technology. Of the Lam (LRCX -0.6%) position - which was started in Q2 - Einhorn says the fund's average purchase price is $54.07, representing 7x Greenlight's estimate of calendar 2015 earnings, net of cash (the stock's near $70 at the moment).