Einhorn’s fund raises stake in Cairn Energy

Marion Dakers
ACTIVIST investor David Einhorn’s hedge fund has recently built up its stake in London-listed oil and gas explorer Cairn Energy, regulatory filings show.

Greenlight Capital last week disclosed a three per cent holding in FTSE 250 component Cairn, though it is believed that the fund has been a shareholder for more than two years.

Einhorn’s fund declared a stake worth 3.06 per cent of the voting rights at Cairn in March 2012, before sliding below the reportable threshold of three per cent two months later.

The American investor has made waves in recent months with a lawsuit against Apple, which has since been called off, in which he urged the tech giant to return more cash to shareholders.

Last year he was fined £7.2m by the Financial Services Authority for using inside information, as part of a probe into a fundraising for Punch Taverns.

The FSA said the market abuse was not deliberate or reckless. Einhorn described the fine as “unjust and inconsistent with the law”, but agreed to pay in order to draw a line under the matter.

Cairn’s largest shareholder is Boston-based MFS Investment Management, which has a 9.66 per cent stake. Acadian Asset Management and New York hedge fund Scopia Capital are also among the American investors who hold more than three per cent in the firm.

A spokesperson said yesterday: “Cairn’s strategy has been well received by US investors, who can be considered long-term investors.”

Shares in Edinburgh-based Cairn Energy have fallen almost 18 per cent in the last year, as the firm turned its focus from its Indian assets, which were sold to Vedanta, towards a frustrating search for fuel in Greenland.

Its shares closed last week at 273p to value the firm at just under £1.64bn.