Fund Manager David Einhorn Says Bye-Bye to Best Buy

July 25, 2012 James Heinsman Hedge Fund News

David Einhorn of Greenlight Capital explained to his investors in a letter to them why he felt compelled to drop Best Buy stock from their portfolio and realize as much as a $100 million loss.

Einhorn is known as one of the best fund managers in the business, but his decision to sell off Greenlight’s 2.27 percent stake in the Richfield-based consumer electronics giant, about 7.7 million shares, was based on recent events at Best Buy which has hindered its ability to function at its best, namely the sudden departure of CEO Brian Dunn and Chairman and Co-founder Richard Schulze.

"As a result, (of the resignations) the company has an interim CEO and is trying to come up with a strategy," the letter from Einhorn stated. "We worried that this could lead to additional business disruption so we exited with a loss."

Best Buy, Brian Dunn, David Einhorn, Greenlight Capital, Richard Schulze,

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