Monday, April 22, 2013

Einhorn’s Swaps Boosting Marvell Bet Exposed by Buyback





David Einhorn, the hedge-fund manager who oversees $8.8 billion, relied on derivatives earlier this year to raise his bet on Marvell (MRVL) Technology Group Ltd. without falling under regulations designed for corporate insiders, according to the good folks at Bloomberg.

Einhorn’s Greenlight Capital Inc. increased its economic stake in Marvell to 12.4 percent from 9.7 percent by entering into total return swaps in January on about 12 million company shares, according to a regulatory filing last week. Einhorn was required to disclose the swaps because Marvell accelerated its stock repurchase program in December and January, reducing its shares outstanding and briefly pushing New York-based Greenlight’s ownership above 10 percent….

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