David Einhorn, the Greenlight Capital fund manager who sued Apple in February for what he claimed was an attempt by the company to make it impossible to create preferred stock, has bought more Apple shares and praised Apple's stock repurchase plan.

Regarding Apple's plan to return $100 billion to shareholders, Einhorn said: "This is a vastly more shareholder friendly capital allocation policy, than where Apple stood a few months ago."

When reporting Greenlight's performance during the last quarter, Einhorn revealed that the fund's biggest loss in the first quarter was Apple, with a decline of about 17%.

He said: "The biggest problems for our Apple investment are disappointing earnings and a diminished forecast," according to the transcript on Seeking Alpha.

However, he added: "Our thesis remains that Apple has a terrific operating platform and that its loyal, sticky and growing customer base will make repeated purchases of a growing portfolio of Apple products."

Einhorn didn't disclose how much the fund added to its Apple stake, however the figure should be announced in the funds Form 13F later this month. Greenlight held more than 1.3 million Apple shares as of 31 December 2012 and also loaded up on call options in the fourth quarter.

Regarding Eihnorn's latest AAPL purchase, Piper Jaffray analyst Gene Munster told Bloomberg: "He’s been the thorn in Apple’s side when it comes to capital distribution. He’s putting his money where his mouth is and endorsing the current capital-distribution plan."

Follow Karen Haslam on Twitter / Follow MacworldUK on Twitter  

Related:

Investors throw $52 billion at Apple, are Apple bonds a good investment

To give back to investors, Apple goes for massive bond deal

Greenlight's Einhorn stocked up on Apple Call Options

The Apple stock suit: What it all means

Apple violating SEC laws and causing 'actual and imminent injury' to investors, claims Greenlight

AAPL action as investor threatens to sue and Apple issues statement