15 Feb The Lato Letter : Volume 1, Issue 5.
News of 13F filings has come out over the last few days and has provided further insight into some of Research In Motion’s (RIM) newer shareholders. Prem Watsa, through Fairfax Financial, purchased a small amount of new shares in the fourth quarter of 2011, but it has been reported that he has approximately doubled his holdings last month following the company’s change in management. Leon Cooperman of Omega Advisors also doubled his position during the fourth quarter. David Einhorn of Greenlight Capital (noted for his large short position in Lehman Brothers prior to its collapse in 2008) has established a new position in RIM.
The news on RIM has continued to be poor so far this year with further corporate defections from Blackberry to iPhone, which has helped fuel the huge rise in Apple and further decline in RIM. As wonderful as Apple has been for the portfolios (and yes it still is very fairly valued), RIM has certainly been a drag. The temptation to throw in the towel is huge but with the likes of the above investors accumulating the stock, I am definitely a holder and not a seller.
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