Einhorn's hedge fund upbeat on Toshiba

New York

GREENLIGHT Capital, the hedge fund firm led by David Einhorn, took a new stake in Japanese conglomerate Toshiba Corp during the second quarter.

The firm said in a note to clients dated Friday that it's wagering that Toshiba shares will rise once it exits money-losing contracts tied to its Westinghouse business, which filed for bankruptcy protection in March. Greenlight also said that it believes Toshiba can resolve a legal dispute over a sale of its memory business that was meant to shore up its balance sheet.