Is David Einhorn Head-Over-Heels for Apple Again?

Greenlight Capital’s (NASDAQ:GLRE) David Einhorn has been a big pusher when it comes to Apple (NASDAQ:AAPL), arguing extensively for the company to return a large portion of its multibillion-dollar cash pile to investors. Now, he might be tying more of his firm’s fate to Apple.

David Einhorn is the president of the Greenlight Capital hedge fund and was pivotal in getting Apple to increase the value for investors by issuing what became one of the biggest dividends in the whole tech industry. In a conference call Tuesday, Einhorn said, “We’ve added to our Apple position. Now we just wait for the release of Apple’s next blockbuster product.

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There weren’t specifics on how much extra Greenlight Capital invested in Apple, but the hedge fund has been tying its fate tight with Apple’s. When Apple’s stock dropped 17 percent in the first quarter, Greenlight Capital took its biggest loss for the quarter in its investment portfolio. At the end of the first quarter, Greenlight Capital held 1.3 million Apple shares, so the fund must have more than that now.

It’s a lot for the firm to hedge its bets on. Apple has been struggling over the past months, in terms of investor sentiment, as it hasn’t launched any major products since the iPad Mini late last year. In its earnings call last month, Chief Executive Officer Tim Cook made it apparent that the company wouldn’t have a new release until this fall.

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Other worries have grown about the company’s ability to actually innovate, as some have claimed that Apple is just coming out with product refresh after product refresh, without any substantially new devices to explode the market. As competition engulfs Apple, there is a concern about how much longer Apple’s tactics will remain successful. While Greenlight Capital sits and waits for a new Apple “blockbuster” product to hit the market and increase the stock’s value, the reality could not be as great as the fund’s expectations.

Here’s how Apple finished trading on Tuesday:

Screen Shot 2013-05-07 at 10.27.28 PM

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