David Einhorn, the hedge-fund manager who called for Steve Ballmer's head three months ago, just increased his stake in Microsoft.
Einhorn's Greenlight Capital reported holding 14.8 million shares of Microsoft as of June 30, according to a regulatory filing dated yesterday. That's up from 9.1 million shares Greenlight held at the end of the previous reporting period, March 31. The Wall Street Journal first reported Greenlight's increased stake.
In May, Einhorn suggested that Ballmer step aside as chief executive of Microsoft, in part, for allowing competitors to jump ahead of the software giant in search, mobile-communications software, tablet computing, and social networking. While Einhorn remained positive about the company's potential, he complained that Ballmer was "stuck in the past," refusing to promote company products that compete with Windows.
"It's time for Microsoft's board to tell Steve Ballmer, 'All right, we see what you can do, let's give so-and-so a chance,'" Einhorn told an investment conference then. "His continued presence is the biggest overhang on Microsoft's stock."
Those concerns, though, didn't seem to prevent him from increasing Greenlight's Microsoft holdings. His displeasure in Ballmer's leadership was clearly offset by his belief that Microsoft shares are undervalued.