David Einhorn

David Einhorn

Last Update: 07-23-2015

Number of Stocks: 44
Number of New Stocks: 8

Total Value: $7,787 Mil
Q/Q Turnover: 18%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

David Einhorn Watch

  • Greenlight Capital Gives OAK Red Light, Trims Others in Third Quarter

    The updated portfolio of David Einhorn of Greenlight Capital includes 30 stocks, three of them new, a total value at $5.63 billion, with a quarter-over-quarter turnover of 3%. The portfolio is weighted with top three sectors: technology at 40.4%, consumer cyclical at 18.5% and health care at 12.6%. The stocks bought by David Einhorn are averaging a 12-month return of 33.35%.

    Guru Einhorn sold out his holding in Oaktree Capital Group LLC, which recently reported the formation of a new equally-owned joint venture with China Cinda Asset Management Co. Ltd. The companies will jointly invest in distressed assets in China and work together in similar markets outside China.  


  • David Einhorn on Apple, New Idea Micron

    Greenlight Capital investor David Einhorn tells CNBC he is still long Apple (NASDAQ:AAPL) and his best new idea is Micron Technology (NASDAQ:MU).

      


  • Guru Investors Divide Over Apple in Q3

    Apple was a boon to many portfolios over its rally from 2009 through Sept. 2012, when the stock climbed from under $100 to peak at over $700 per share. This year, as it fell to an average of $464 in the third quarter, competition increased and the question of innovation after the loss of its luminary Steve Jobs continued, noted investors voiced varying opinions about the company’s valuation and prospects, and bought and sold shares accordingly.

    David Einhorn  


  • How Position Sizing Based on Probability of Returns Can Save Your Portfolio

    As I was writing this, I got Vitaliy Katsenelson’s latest article on J.C. Penney.

    If Katsenelson is a new name to you, he is a prominent investor and fund manager in the value investing community. He is also the author of Active Value Investing where he introduces the Absolute PE model which I’ve modified and incorporated into the OSV Stock Analyzer.  


  • David Einhorn’s New Stocks – TPX, XON, NVR

    David Einhorn, founder of Greenlight Capital, bought three new stocks in the third quarter: Tempur Sealy International Inc. (NYSE:TPX), Intrexon Corp. (NYSE:XON) and NVR Inc. (NYSE:NVR). Einhorn’s third quarter portfolio contained 30 stocks, with 3% quarter-over-quarter turnover, and a value of $5.63 billion.

    Chart of his performance:  


  • David Einhorn on Global Economy and QE2



  • David Einhorn Comments on Gjensidige Forsikring

    We exited two successful long positions in the quarter. We invested in Gjensidige Forsikring (Norway: GJF), a P&C insurer, when it IPO’d in the fourth quarter of 2010. The story played out nicely as the company executed on its IPO plan to improve its underwriting, cost management,and capital discipline. We sold when GJF reached a fair valuation and we earned a 27% IRR over three years.  


  • David Einhorn Comments on Osram Licht



  • David Einhorn Comments on Green Mountain Coffee Roasters

    We added to our short position in Green Mountain Coffee Roasters (NASDAQ:GMCR). Although the company again missed the consensus estimate for sales, bullish analysts scrambled to lower forward revenue forecasts while insisting that all is well in mudville. Attention quickly shifted away from the results when new CEO Brian Kelley announced on the Q3 earnings call that GMCR would hold its first ever investor day in September. When asked what prompted the decision, Mr. Kelley said, "I think a number of people on our team have found that an investor day that is crisp, but thorough on the key issues can be very valuable to help people understand our company. And I think it's – that's the core purpose is to help you understand our company better.

    "The evening before the invitation-only event on September 10, the New York Times reported that there was a large discrepancy between the number of K-Cups the company says it has sold and the numbers implied using data from the tracking firm IRI. For years there have been questions about misconduct within GMCR's distribution and accounting departments. This new information raised the possibility that this activity is continuing, with GMCR potentially booking hundreds of millions of dollars of non-existent K-Cup sales.  


  • David Einhorn Comments on Chipotle Mexican Grill

    But even in conventionally valued stocks where the fundamentals have largely gone our way, it has been hard to make money on shorts. In many cases we’ve lost money. Let’s consider Chipotle Mexican Grill (NYSE:CMG). In recent years through the end of 2011, CMG and other upstarts in the fast-casual restaurant segment achieved substantial growth by offering consumers a higher quality menu than is typically found in fast-food chains. In contrast, Taco Bell (the largest Mexican fast-food chain) had lackluster and often negative growth. In early 2012, Taco Bell expanded its offerings to include new gourmet-style dishes as part of its Cantina Bell menu and introduced Doritos Locos Tacos. We believed that these innovations would enable Taco Bell to recapture market share from CMG. This is exactly what happened:

    Notably, CMG’s comparable store sales benefit by about 2.5% per year because the company has a large number of new stores entering the comp base each year, which naturally ramp their volumes. Since Taco Bell has a mature store base, its comparable store sales don’t share that tailwind.  


  • David Einhorn Comments on Vodafone

    Vodafone (NASDAQ:VOD) shares advanced from £.88 to £2.16. The highlight was the announced sale of its 45%minority interest in Verizon Wireless for $130 billion. Upon completion, VOD will be predominantly a European wireless carrier with a network and spectrum that leave it better positioned for growth than its peers. At 4.5x 2014 EBITDA, the VOD "stub" trades at a notablediscount to its sector and is a possible acquisition candidate.

    From David Einhorn’s Greenlight Capital third quarter 2013 letter.  


  • David Einhorn Comments on Apple

    Apple (NASDAQ:AAPL) shares advanced from $397 to $477 as earnings estimates stopped falling and the market turned its attention to AAPL’s new products. The newly introduced iPhone 5s gives customers a compelling reason to upgrade. It looks like it will be a hit, and we believe that AAPL will find novel ways to use Touch ID and iBeacon to monetize its user base and ecosystem via new service offerings and apps. AAPL’s current non-hardware e-commerce business (sales from iTunes, AppStore and iBook Store, plus software and services) is $16 billion a year and growing. Not only is it growing faster than Amazon, AAPL makes more money in non-hardware e-commerce alone than Amazon makes in its entire business. That gap will likely widen in AAPL’s favor as AAPL rolls out new offerings and services. We believe that near-term share performance will track the success of the new phones, while the longer-term share price will reflect the market’s eventual understanding of AAPL’s strong ability to earn high-margin and recurring revenue streams.

    From David Einhorn’s Greenlight Capital third quarter 2013 letter.  


  • Greenlight Capital (Einhorn) - Q3 2013



  • David Einhorn's Thoughts on Vodafone, Green Mountain Coffee - Overview

    Many billionaires came out today to comment on the government disaster trifecta: the shutdown, looming debt ceiling and potential debt default. In the course of the conversation, they also gifted the public with their thinking on some of their stock holdings. One of the most-followed, David Einhorn of hedge fund Greenlight Capital, devoted a portion of his Bloomberg interview discussing two in particular: Vodafone and a Green Mountain short.

    Green Mountain Coffee Roasters (NASDAQ:GMCR)  


  • David Einhorn Discusses Debt Ceiling, Green Mountain, Other Holdings

    Hedge fund manager David Einhorn says that a divided government is good. He also comments on why he is still short Green Mountain (NASDAQ:GMCR), and discusses another long position, Vodafone (NASDAQ:VOD).

      


  • The Long and Short of It: A Short History

    “The average man doesn’t wish to be told that it is a bear or bull market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn’t even wish to have to think.” -- Jesse Livermore

    “To enjoy the advantages of a free market, one must have both buyers and sellers, both bulls and bears. A market without bears would be like a nation without a free press. There would be no one to criticize and restrain the false optimism that always leads to disaster.” -- Bernard Baruch  


  • The Long and Short of It

    The market is a wacky phenomenon that by all accounts acts independent of the way in which we perceive its supposed direction. In simple words, you can’t guess what it will do next. We cannot wish it into complying with our desires. The last several years have been extremely difficult for many investors, concerned about the overvaluation in stocks, macroeconomic issues, etc. What’s more perplexing is the noise from that entity known as Wall Street that cries that stocks are cheap and that all is well, while others sing the opposite story. Deep within, many of us have serious doubts and are waiting for something to happen, not knowing what that something may be. A pullback? A major downturn? A crash? Maybe it will keep going up and we will miss out while sitting on the sidelines.

    Benjamin Graham warned us of this very fact. His story of Mr. Market in “The Intelligent Investor”, shows a bipolar organism with a mind of its own that is not telling anyone what it is thinking. Mr. Market prices stocks at sometimes wildly different prices each day, and Graham summarizes with:  


  • David Einhorn's Top 5 Second Quarter Positions

    During the second quarter David Einhorn of Greenlight Capital bought seven new stocks. The guru’s portfolio now carries 30 stocks and is valued at $5.33 billion.

      


  • David Einhorn Buys ING US Inc, Liberty Global, Sells Virgin Media, Cigna, Seagate

    Influential hedge fund manager David Einhorn just reported his second quarter portfolio. He was a net seller for the quarter, as he has sold out many positions. He did buy a few new positions, too. David Einhorn bought ING US, Liberty Global, IAC/InterActiveCorp, Liberty Global PLC etc. during the 3-months ended 06/30/2013, according to the most recent filings of his investment company, Greenlight Capital.

    As of 06/30/2013, Greenlight Capital owns 30 stocks with a total value of $5.3 billion. These are the details of the buys and sells.  


  • 3 Stocks David Einhorn Is Optimistic About

    David Einhorn’s Greenlight Capital letter surfaced last week, condensing holdings performance, short positions, new and closed long positions of the quarter and his market assessment. With the hedge fund manager’s initial victory wrangling Apple (NASDAQ:AAPL) into sharing more cash with shareholders evening out as threat of competition and market saturation injected fear into the stock, and a market-performing short portfolio dragging down gains from a market-beating long portfolio, Einhorn added a 1.2% net gain to bring the year to date total to 7.1%.

    But Einhorn is more worried about the market going forward. He has cut exposure over concern that its continued gains in the face of lackluster earnings may create instability, reducing his fund’s risk of volatility and preparing for resulting opportunities.  


  • Greenlight Capital (David Einhorn) Q2 Investor Letter



  • 3 Stocks of David Einhorn Trading at Their 52-Week Low Price

    David Einhorn is a value-oriented investor who consistently mentions price and valuation when discussing his holdings. In the first quarter, his Greenlight Capital funds returned 5.8%, as opposed to 10.5% for the S&P 500. While Marvell Technology Group (NASDAQ:MRVL) and Yen puts led his gainers, massive position Apple (NASDAQ:AAPL) sunk to his biggest loser.

    Apple’s continued to slide in the second quarter. It and several of Einhorn’s other positions are at their lowest price point in a solid year: Barrick Gold Corp. (NYSE:ABX) and Symmetricom Inc. (NASDAQ:SYMM).  


  • Insider Buys at 52-Week Low Prices

    During the past week, four companies have reported insider buys as their prices have dropped to or neared a 52-week low. Looking at insider buys at 52-week lows can be interesting because (to paraphrase Peter Lynch) an insider will only put their personal money into the company if they think the stock price will go up.

    The following four companies reported insider buys at their 52-week lows:  


  • Three CEOs Reporting $100 Thousand Insider Buys

    This past week we saw CEOs from three different companies reporting insider buys with transaction amounts costing over $100,000. Fifth Street Finance (FSC)

    CEO Leonard Tannenbaum added 20,000 shares to his stake on June 20. These shares traded at an average price of $9.94 per share for a total purchase amount of $198,000 for Tannenbaum. Since his buy, the price per share has dropped approximately -0.5%. As of his most recent purchase, the CEO holds nearly 2 million shares of Fifth Street Finance.  


  • CEO of Fifth Street Finance Corporation Leonard M. Tannenbaum Bought 20,000 Shares

    Fifth Street Finance Corp. is a Delaware Corporation. Fifth Street Finance Corporation has a market cap of $1.23 billion; its shares were traded at around $10.04 with a P/E ratio of 10.10 and P/S ratio of 6.10. The dividend yield of Fifth Street Finance Corporation stocks is 11.50%. Fifth Street Finance Corporation had an annual average earnings growth of 36.7% over the past 5 years. Articles on GuruFocus.COM CEO of Fifth Street Finance Corporation (NASDAQ:FSC) Leonard M Tannenbaum bought 20,000 shares on June 20, 2013 at an average price of $9.94. The total transaction amount was $198,800.

    Leonard Tannenbaum is currently the Shairman of the Board of Directors and CEO of Fifthh Street Finance Corp. After founding his first private investment firm in 1998, Mr. Tannenbaum has continued to found more private investment firms, including Fifth Street Finance Corp, and has served as a managing member of each firm.  


  • David Einhorn's Most Active Insider Stocks

    As Peter Lynch has been quoted as saying many times: “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.” So when insiders and gurus both buy into a company, it’s time to take notice. As a previous article written by GuruFocus discusses, insider buys of undervalued companies can sometimes lead to large gains, and value Gurus tend to buy stocks that are undervalued. So by finding the stocks that Gurus and insiders are buying, you increase your chance of finding a winner.

    As of March 31, David Einhorn held 38 stocks valued at over $6.5 billion. The following three companies are Einhorn’s most active insider buying stocks.  


  • David Einhorn's Top New Buys Still Appear Undervalued

    We can’t say for sure what David Einhorn’s exact analysis process is, but some of his largest adds of the first quarter still appear undervalued. Einhorn’s Greenlight Capital hedge fund rose 8.8% this year through May 31, 2013 compared to 10% for the S&P 500, and most of his new purchases of the first quarter have appreciated modestly. Given what a proven stock picker Einhorn is, the holdings could still have more room to increase.

    Oil States International (NYSE:OIS)  


  • Weekly CEO Buys Highlight: TSLA, TRIO, BXMT, FSC, CSV

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:

    Tesla Motors Inc. (NASDAQ:TSLA): CEO, 10% Owner Elon Musk Bought 1,084,129 Shares

    CEO and 10% Owner of Tesla Motors Inc. (NASDAQ:TSLA) Elon Musk bought 1,084,129 shares on 05/30/2013 at an average price of $97.76. Tesla Motors Inc, was incorporated in the state of Delaware on July 1, 2003. Tesla Motors Inc. has a market cap of $12.13 billion; its shares were traded at around $97.76 with and P/S ratio of 11.61.  


  • David Einhorn Loves These 4 Dividend Stocks

    On May 15, a full range of professional fund managers released their quarterly statements. Today I look at the best dividend stock buys of David Einhorn. He is the head of Greenlight Capital and serves around $6.5 billion in assets. In total he has 38 stocks of which six were bought within the recent quarter. Below is a list of his 20 biggest transactions within the recent quarters.

    His biggest move was related to Apple. He increased the position by 83.45%, a change to his portfolio of 7.37%.  


  • Einhorn Increases AAPL and Decreases Nine

    David Einhorn is president of Greenlight Capital (a value-oriented investment advisor). GuruFocus notes in his investment philosophy that Einhorn believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions.

    Einhorn’s current portfolio consists of 38 stocks (6 new), valued at over $6.553 billion. In the most recent quarter, David Einhorn increased his holdings in one stock and decreased his holdings in nine companies. Highlighted below is Einhorn’s one increase as well as his top five decreased holdings.  


  • David Einhorn Buys Ira Sohn Recommendation, 5 Others

    When not busy suing Apple and probably lamenting the sell-off in gold, of which his Greenlight Capital Management has a major holding, David Einhorn bought six new stocks in the first quarter of 2013. The hedge fund manager returned 6.1% in the first quarter, lagging the S&P 500 Index, which continued its rally another 10%.

    In April, Einhorn was also honored as one of Time Magazine’s 100 Most Influential People.  


  • David Einhorn’s Stopped Shorts

    David Einhorn has been known to pull down celebrated companies from their lofty heights with a single presentation showcasing their ill-boding fundamental and market flaws based on research from his hedge fund, Greenlight Capital. Chipotle (NYSE:CMG), Herbalife (NYSE:HLF) and Green Mountain Coffee Roasters (NASDAQ:GMCR) have all been Einhorn targets.

    While GuruFocus does not catalogue the short positions of most gurus because they are not required to disclose them, it can be informative to look at the ones they report occasionally in their quarterly letters.  


  • David Einhorn Comments on Oil States International

    We initiated a long position in Oil States International (OIS), a solutions provider for the oil and gas industry, at an average price of $77.16 per share. OIS has four business segments: Well Site Services, Tubular Services, Offshore Products, and Accommodations.

    We believe that the company trades at a significant discount to the sum of its parts. Though the shares trade at slightly less than 7x 2013 EBITDA (a multiple typically associated with its lower multiple businesses), the majority of its profits come from Accommodations, which is a high-growth, high return-on-capital segment that deserves a much higher valuation. At 8.6x 2013 EBITDA, an appropriate multiple given a sum of the parts analysis of OIS’s business mix and where comparable companies trade, OIS would be worth close to $120 per share. We believe that OIS could unlock significant shareholder value by converting the Accommodations unit into a REIT and separating it from the rest of the company; if completed, it would suggest a valuation of $155 per share.  


  • David Einhorn Comments on Evonik

    We initiated a long position in Evonik (Germany: EVK) [color=#444444; font-family: arial, sans-serif; font-size: small; line-height: 16px](GR:EVK), [/color]a global chemical business, through a private placement at an effective price of €29.13 per share, ahead of a public listing in April. EVK has a high quality portfolio of chemical assets in the U.S., Europe and Asia, including market leadership in methionine, a high margin, high structural growth business that tracks the demand for animal feed. EVK’s business is less cyclical than that of its European peers as demonstrated by its positive EBITDA growth each year even during the recession. EVK is currently in the middle of a capital investment cycle that we believe will enable it to grow its earnings power from €2.50 in 2012 to €4.00 per share in 2015/2016. We think that its combination of secular growth, superior asset quality, and low cyclicality makes EVK the premier European chemical company, which deserves a re-rating to a premium multiple.

    From David Einhorn's 2013 first quarter investor letter.  


  • David Einhorn Comments on Marvel (MRVL)

    (NASDAQ:MRVL) reversed its 2012 decline as investors began to pay attention to MRVL’s prospects for share gains in controllers for hard disk drives and flash memory drives, as well as its new processor for cell phones and tablets. The company should see significant fixed operating leverage in 2013, as it has been carrying the cost of the investments in these products without any corresponding revenue until now. The company has also continued to buy back stock aggressively, adding to the potential earnings leverage.

    From David Einhorn's first quarter 2013 letter.  


  • David Einhorn Comments on Vodafone

    In addition to MRVL and the Yen, Vodafone (UK: VOD)(NASDAQ:VOD) was another material winner during the quarter. It is now clear that Verizon does in fact want to buy VOD’s 45% interest in Verizon Wireless. We can hear them now. We believe that a premium sale followed by a successful return and/or redeployment of the proceeds could unlock substantial value latent in VOD stock. VOD without Verizon Wireless might also become a good acquisition target for AT&T. During the quarter VOD shares advanced from £1.54 to £1.87.

    From David Einhorn's first quarter 2013 letter.  


  • David Einhorn Comments on Green Mountain Coffee Roasters

    The other significant loser in the quarter was Green Mountain Coffee Roasters (GMCR). We would love to be the “Credentialed Bear” that gets invited to ask tough questions at its annual shareholder meeting, but we aren’t waiting by our iPhones. Shares of GMCR increased from $41.34 to $56.76 in the quarter.

    From David Einhorn's first quarter 2013 letter.  


  • David Einhorn Comments on Apple

    (NASDAQ:AAPL) shares fell from $532 to $443 during the quarter. The biggest problems with our AAPL investment are disappointing earnings and a diminished forecast. When AAPL announced its year-end result, it made clear that it would earn less in the March quarter than it did a year ago. Forward estimates have been falling for a while. Last July, consensus estimates for fiscal 2014 were $64 per share; estimates now stand at $44. When we thought the company would earn $64 per share, the shares seemed cheap even as they reached $700 in September. Of course, that required AAPL to meet that forecast.

    Our thesis is that AAPL has a terrific operating platform, engendering a loyal, sticky and growing customer base that will make repeated purchases of an expanding AAPL product offering. Unfortunately, there have been a series of disappointments including slower sales growth, lower margins, and increased competition. There have also been delays in new carrier wins, next generation product introductions, and new product category launches. While all of these have had an understandably negative impact on AAPL’s share price, we take a longer view and believe our thesis is intact.  


  • Greenlight Capital David Einhorn's First Quarter Letter to Investors

    From David Einhorn's Greenlight Capital, as of May 8, 2013:  


  • Billionaire David Einhorn Takes Profits In Marvell Tech

    The title sounds bad right? Einhorn has owned Marvell Technology (MVRL) since he first started buying up the stock during the third quarter of 2011. Recent news broke that Einhorn sold off some 1.27 million shares of Marvell at around $10.16 per share, worth some $12.9 million. Should investors consider this sale as the change in his opinion about Marvell? Should we turn bearish on Marvell now?

    Much of the news that hit the wire when Einhorn sold some of his Marvell stake over blew the story, when in reality, he was merely freeing up some capital in what turns out to be a selloff of less than 2.5% of his entire Marvell stake. The shares sold off by Einhorn and Greenlight are just a small fraction of its total stake in the semiconductor company; his sentiment about the stock appears to be quite bullish based on his history with the stock and his recent investor letter.  


  • David Einhorn Discusses the Implications of the Actions of the Federal Reserve

    The following is David Einhorn's introduction to an article that he wrote for the Huffington Post several months ago with respect to the policies of Ben Bernanke and the Federal Reserve:

      


  • Billionaire David Einhorn's Big Moves: Apple (AAPL), Google (GOOG) And More

    Be sure to check out our detailed stock analysis (click here).

    Billionaire David Einhorn, founder of value-oriented hedge fund Greenlight Capital, managed to return some 21.5% annually through 2010 (since he started Greenlight in 1991). Greenlight and Einhorn employ a fundamental approach to investing, focusing on intrinsic value. During the fourth quarter last year, Einhorn reiterated his confidence in a couple of his top picks by adding to his positions, notably keeping a certain tech giant as his top pick, while also betting on a couple other tech companies. Let's take a look at some of Einhorn's most notable trades (check out Einhorn's top picks).  


  • When David Einhorn Talks, Markets Listen... Usually

    An article on our favorite short-seller, David Einhorn, from Bloomberg Businessweek:

      


  • Billionaire David Einhorn's Big Moves: Apple (AAPL), Google (GOOG) and More

    Billionaire David Einhorn, founder of value-oriented hedge fund Greenlight Capital, managed to return some 21.5% annually through 2010 (since he started Greenlight in 1991). Greenlight and Einhorn employ a fundamental approach to investing, focusing on intrinsic value. During the fourth quarter last year, Einhorn reiterated his confidence in a couple of his top picks by adding to his positions, notably keeping a certain tech giant as his top pick, while also betting on a couple other tech companies. Let's take a look at some of Einhorn's most notable trades.

    Einhorn increased his Apple (NASDAQ:AAPL) position, upping his shares 15%, keeping the tech giant as his top stock pick, which now makes up 10.8% of Greenlight's portfolio.  


  • Einhorn and Tepper’s Top Holding Apple Near Year Low and Less Than Their Purchase Price

    Investors interested in the strategies of David Tepper and David Einhorn may want to note that their top holding, Apple Inc. (NASDAQ:AAPL), is trading for close to its 52-week low, and less than the average price either of the two managers paid for their shares.

    David Einhorn   


  • David Einhorn's Presentation to Apple Shareholders



  • David Einhorn Gains 3% and Loses on Shorts in January – Greenlight Re Earnings Call Transcript

    David Einhorn’s comments from Greenlight’s fourth quarter and year-end 2012 conference call of Feb. 20, 2013:

    David Einhorn: The Greenlight Re investment portfolio lost 4.4% in the fourth quarter of 2012, which lowered our 2012 return to 7.1%. This was a disappointing result in a generally favorable investing environment. In the fourth quarter losses in our short portfolio included Green Mountain Coffee Roasters (NASDAQ:GMCR), Moody’s and companies sensitive to declining iron ore prices, which accounted for more than all of the losses in the quarter. The long portfolio showed slight gains, as General Motors and other longs outpaced losses in Apple and Marvel Technologies. Our macro positions were also slightly positive, with gains on a weakening yen exceeded losses on gold and various other positions. In January, the investment portfolio gained 3%, helped by a recovery in Marvel, which reversed about half of its 2012 loss. January also had contributions from the yen continuing to weaken and from gains in long investments in Vodafone and the Dutch insurer Delta Lloyd. The short portfolio lost money in January.  


  • Weekly CEO Buys Highlight: AGNC, WTSLA, ARAY, FSC, SREV

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:

      


  • David Einhorn Buys Google, Vodafone and Western Digital

    David Einhorn, value investor and head of hedge fund Greenlight Capital, bought three new stocks in the fourth quarter: Google Inc. (NASDAQ:GOOG), Vodafone Group Plc (NASDAQ:VOD) and Western Digital Corp. (NASDAQ:WDC). Greenlight Capital since inception in May 1996 has returned 19.4% on annualized basis, net of fees and expenses, after underperforming the market being up 8.3% 2012. New Buys

    Google Inc. (NASDAQ:GOOG)  


  • David Einhorn's Letter to Apple Shareholders



  • David Einhorn on CNBC Discussing His Apple Proposal

    David Einhorn on CNBC discussing his Apple proposal

      

  • Apple – The Guru Winners, Losers and Buyers on Stock Pullback

    Apple (NASDAQ:AAPL)’s stock has gone from bad to worse this year, plunging 12% already this afternoon to $453 a share, significantly off of its 52-week high of $705 reached in September. Only recently talk abounded that Apple would hit $1,000 per share, and perhaps achieve first company with a trillion-dollar market cap status. Some GuruFocus Gurus escaped just in time, others lost, and still others are greeting this as a temporary market dip before Apple continues on to greatness.  


  • David Einhorn’s 2012 Conviction Picks, Hits and Misses

    Upon the release of Greenlight Capital’s fourth quarter shareholder letter this week, penned by hedge fund manager David Einhorn, it was revealed that some of Einhorn’s high conviction stocks, or companies that Einhorn kept buying over the latest quarters, came up short of the Guru’s expectations.

    “The disappointing fourth quarter result reduced our year from good to pedestrian,” Greenlight admitted. “While it is hard to view our performance last year as a catastrophe, it nonetheless falls short of our goals.”  


  • David Einhorn Comments on GM

    The long portfolio was marginally profitable, led by General Motors (NYSE:GM) which advanced from $22.75 to $28.83 in the quarter. GM repurchased more than 11% of its shares from the government, which has committed to sell the balance of its stake over the next year. GM’s reduced share count is quite accretive to its earnings, and we hope that the recent action is afirst step by management toward shareholder-friendly capital allocation. Even after the repurchase, GM holds substantial excess capital and has a good opportunity to further reward shareholders through additional share repurchases either from the government or in the open market.

    From David Einhorn's fourth quarter letter.  


  • David Einhorn Comments on Huntington Ingalls Industries

    Huntington Ingalls Industries (NYSE:HII) executed relatively well in difficult circumstances over our holding period and the investment compounded at a high single-digit rate of return despite the challenging macro and federal spending environment. We exited the long position with a small gain.

    From David Einhorn's fourth quarter letter.  


  • David Einhorn Comments on Pitney Bowes

    Our three year old thesis that Pitney Bowes (NYSE:PBI) was a “melting ice cube” due to secular declining U.S. mail volumes played out. The company has been in a perpetual restructuringmode and reported a series of disappointing quarters. In addition, the viability of the dividendcame into question. We covered the short position with a nice gain.

    From David Einhorn's fourth quarter letter.  


  • David Einhorn Comments on Computer Sciences Corp

    Computer Sciences Corp. (NYSE:CSC) is an IT consulting and outsourcing business. In 2011, the stock declined more than 50% due to deteriorating profitability, missed estimates, and controversy relating to the company's large contract with the U.K. National Health Service.We began purchasing shares in February 2012, after the company announced a change in management. We continued purchasing shares throughout the year and established a position at an average price of $27.78 per share. We view CSC as a fundamentally sound business that has had margins well below that of its peers as a result of organizational inefficiencies, historical mismanagement, and various non-recurring charges that obscured underlying earnings. In addition, the company owned several valuable assets, including its high-margin Equifax credit services affiliate that we believed could be monetized at an attractive multiple.

    We believe that CSC has earnings power in excess of $4.00 per share and that the new management team is capable of turning the company around to achieve those earnings, and possibly more. The early results have been promising, as CSC has reported two quarters of above-consensus earnings, monetized its Equifax affiliate and initiated a share repurchase program. CSC shares closed the year at $40.05 each. While the stock has appreciated in response to management’s progress to date, we continue to believe that the company has significant opportunities for margin improvement, free cash flow conversion and capital deployment under the leadership of its well incentivized and shareholder-friendly management team.  


  • David Einhorn Comments on Vodafone

    We have also increased our Vodafone (UK: VOD) holdings, as the stock fell sharply on newsthat just doesn ’ t seem that bad. After achieving an August peak of £1.92, the shares ended theyear at £1.54. At this valuation, it appears that the market is placing no value on VOD’s 45%stake in Verizon Wireless. And the Verizon Wireless stake is clearly quite valuable.

    Look at it from Verizon ’ s perspective: Historically, Verizon had a very profitable landline business, and Verizon Wireless owed it billions of dollars. Verizon received Verizon Wireless ’s free cash flow as it repaid the debt. For years, Verizon used its control to try to starve VOD by refusing to allow Verizon Wireless to pay dividends. Today, Verizon’s landline business generates no cash and the debt from Verizon Wireless has been repaid. Verizon’s 55% control stake in Verizon Wireless is probably worth mo re than all of Verizon’s market capitalization, and Verizon has become wholly dependent on dividends from Verizon Wireless to fund its parent company obligations and shareholder dividends.  


  • David Einhorn Comments on Marvell Technology

    Marvell Technology (NASDAQ:MRVL) was our biggest loser in 2012. MRVL shares fell from $13.85to $7.26 during the year. Earnings disappointments earlier in the year were followed by an end-of-year jury verdict of over $1 billion for infringement on certain patents held by Carnegie Mellon University. Having reviewed the proceedings, our view is that this is a case of a novel interpretation of the law by a local judge, combined with a hometown runaway jury. Although the legal system is inherently a crapshoot, we think that there are many reasons to expect the award to be substantially reduced or eliminated, either by the trial judge or on appeal. There are many grounds, but one of the simplest is that most of the damages were awarded based on foreign sales that are generally not protected by U.S. patents. The jury found that since the product was “designed and tested” in the U .S., damages were payable even though the manufacturing and sales happened abroad.

    Though we’d love to just admit we are wrong, sell the stock, and move on, we continue to like the opportunity here. MRVL is on the cusp of a large product transition which, to put it mildly, is not in the valuation. A year ago we were feeling pretty discouraged about our Sprint position, but we re-evaluated and determined that while the stock was down for good reason,our overall thesis was intact. It turned out to be a good decision. We have similarly re-evaluated and decided to buy even more MRVL. We expect its shares to sprint higher in 2013.  


  • Greenlight Capital (Einhorn) Q4 2012 Investor Letter

    Greenlight Letter Q4 byzerohedge. He comments on Marvell (NASDAQ:MRVL), Vodafone (NASDAQ:VOD), General Motors (NYSE:GM), Apple (NASDAQ:AAPL), Green Mountain Coffee Roasters (NASDAQ:GMCR), Computer Sciences Corp. (NYSE:CSC), Pitney Bows (NYSE:PBI) and Huntington Ingalls (NYSE:HII).  



  • David Einhorn Underperformed in 2012

    It was recently reported that Greenlight Capital, managed by David Einhorn, greatly underperformed the benchmark indices in 2012.

    Einhorn's fund was only up 8.3% in 2012 while the S&P was up 13.4% in the same period.  


  • What’s Up with David Einhorn’s Shorts - Chipotle Mexican Grill Inc.

    David Einhorn, founder of hedge fund Greenlight Capital, has moved markets with his powerful presentations on stocks he has decided to short and reaped sizable gains. The companies he targets typically have to respond to accusations leveled at them and after some time has passed, it becomes clearer whether Einhorn was right in his assessment. Perhaps most famous are his short positions in Chipotle (CMG), The St. Joe Company (JOE) and Green Mountain (GMCR) (read about his Green Mountain short here). Einhorn's portfolio is up in the low teens through October in 2012.

    Einhorn’s Oct. 2 revelation at the Value Investing Congress that his firm took a short position in Chipotle had a milder effect on its stock price that his previous short announcements – it fell 4.2 percent to $302.96 that day. Chipotle is the upscale burrito restaurant that focuses on fresh, sustainably grown, humanely raised, often organic ingredients. Since its founding in 1993, it has expanded to 1,350 restaurants and seen its stock soar 593% since going public in 2006.  


  • What’s Up with David Einhorn’s Shorts - The St. Joe Company

    David Einhorn, founder of hedge fund Greenlight Capital, has moved markets with his powerful presentations on stocks he has decided to short and reaped sizable gains. The companies he targets typically have to respond to accusations leveled at them and after some time has passed, it becomes clearer whether Einhorn was right in his assessment. Perhaps most famous are his short positions in Chipotle (CMG), The St. Joe Company (NYSE:JOE) and Green Mountain (GMCR) (read about his Green Mountain short here).

    Einhorn revealed his firm’s short position in St. Joe at the 2007 Ira Sohn Conference and presented an updated, 139-page thesis at the 2010 Value Investors Conference. Founded in 1936, St. Joe is the second-largest land owner in Florida, owning approximately 567,000 acres of land primarily in Northwest Florida it is either developing or using to grow and sell timber.  


  • What’s Up with David Einhorn’s Shorts: Green Mountain Coffee Roasters

    David Einhorn, founder of hedge fund Greenlight Capital, has moved markets with his powerful presentations on stocks he has decided to short and reaped sizable gains. The companies he targets typically have to respond to accusations leveled at them and after some time has passed, it becomes clearer whether Einhorn was right in his assessment. Perhaps most famous are his short positions in Chipotle (NYSE:CMG), St. Joe Company (JOE) and Green Mountain (NASDAQ:GMCR).

    David Einhorn announced his short position in Green Mountain Coffee Roasters (NASDAQ:GMCR) in October 2011 at the Value Investing Congress. Shares began to plunge immediately, eventually bottoming at a 52 percent loss by about a month.  


  • David Einhorn's Long-Term Position in NCR

    David Einhorn established a long position in NCR Corporation (NYSE:NCR) in the third quarter of 2010. The price he paid was under $14 for approximately 8.3 million shares. Einhorn's fund has continued to hold shares of NCR, and yesterday JP Morgan added NCR to their "Focus List."

    NCR is focused on ATMs and various other self-service kiosks. At the time when Einhorn acquired the stake he wrote in his shareholder letter, "It trades at 31 times trailing earnings, but in its most recent quarter reported blowout numbers- an 11% increase in revenue and a 142% increase in earnings compared to the same period the previous year- beating analyst estimates for the fourth quarter in a row. The sell-side is catching on, with current earnings estimates implying a forward P/E of 8 and a five-year PEG of 0.6. If the company comes close to those numbers, Greenlight should reap high returns."  


  • David Einhorn Buys Computer Sciences, General Motors, Yahoo!, Sells Apple, Seagate, Best Buy

    Renowned hedge fund manager David Einhorn just reported his third quarter portfolio. Einhorn made him fame with a few high profiled shorts that worked out nicely for him. Most recently he shorted Chipotle Mexican Grill and Green Mountain Coffee Roasters. When the news broke out, both stocks were hammered. This is the third quarter portfolio of David Einhorn. He bought into new positions in Computer Sciences Corporation, Yahoo, Babcock & Wilcox Co, and Aecom Technology. He also added to his positions in HMOS such as Aetna Inc, Cigna Corp. Among his sales, the most notable ones are Apple (NASDAQ:AAPL) and Best Buy (NYSE:BBY) He reduced his position in Apple by 25%, although it is still his largest position. He dumped Best Buy completely.

    David Einhorn wrote very favorably about Apple in May. But apparently the price appreciation or the recent business development at Apple has changed some of his views. This was what he wrote back in May:  


  • Einhorn Increases Short Positions

    On last week's conference call, David Einhorn sounded more bearish than at any time over the last three years.

    Einhorn said that he has increased his short portfolio over the last quarter:  


  • Einhorn's New Short, DMGT



    David Einhorn’s new bearish position on London-based Daily Mail and General Trust (DMGT:LN) was the biggest short taken by any hedge fund against UK company in light of new regulatory rulings.  


  • Will David Einhorn Buy Marvell Again as Price Drops Further?

    David Einhorn makes few investing mistakes. Since he reported his second-quarter portfolio, only one of his stocks is cheaper today than when he bought it: Marvell Technology Group Ltd. (NASDAQ:MRVL). When the price declined 28 percent in the second quarter, Einhorn said he used it as “an opportunity to increase our stake in the company.” His colleague Daniel Loeb of Third Point, meanwhile, exited his position. As the stock continued a 19 percent slide in the third quarter (42 percent year to date), it left many to wonder if it is still the deal Einhorn thought it was.

    The Company   


  • David Einhorn Comments on Chipotle Mexican Grill

    At the recent Value Investing Congress, David updated our view of Green Mountain Coffee Roasters (GMCR), elaborated on our General Motors (GM) and Cigna (CI) theses, and disclosed our short position in Chipotle Mexican Grill (CMG).

    ...  


  • David Einhorn Comments on Cigna

    At the recent Value Investing Congress, David updated our view of Green Mountain Coffee Roasters (GMCR), elaborated on our General Motors (GM) and Cigna (CI) theses, and disclosed our short position in Chipotle Mexican Grill (CMG).

    Regarding CI, we discussed that it trades at a discount to the HMOs, which as a group trade at low multiples. We then illustrated that CI is a higher-quality business that generates superior and more stable returns on equity than its peer group. With a substantial emphasis on Administrative Services Only business, CI deserves a higher multiple closer to the business process outsourcing companies (such as ADP) than to the HMOs. CI also has a significant and growing Medicare Advantage business and a fast growing international business. Finally, we noted that since the vast majority of its customers are large and mid-sized enterprises, CI has much less exposure to the known risks of Obamacare including health care exchanges. In fact, Obamacare may provide a growth opportunity for the company because it may finally afford CI the opportunity to compete meaningfully in the in the individual segment of the market.  


  • David Einhorn Comments on General Motors

    At the recent Value Investing Congress, David updated our view of Green Mountain Coffee Roasters (GMCR), elaborated on our General Motors (GM) and Cigna (CI) theses, and disclosed our short position in Chipotle Mexican Grill (CMG).

    ...  


  • David Einhorn Comments on Green Mountain Coffee Roasters

    From Greenlight Capital's third quarter letter.

    At the recent Value Investing Congress, David updated our view of Green Mountain Coffee Roasters (GMCR), elaborated on our General Motors (GM) and Cigna (CI) theses, and disclosed our short position in Chipotle Mexican Grill (CMG).  


  • David Einhorn's Greenlight Capital Q3 Investor Letter

    David Einhorn of hedge fund Greenlight Capital chides governments for monetary easing policies, defends gold and talks about his favorite investments in his third quarter investor letter:

    Dear Partner: The Greenlight Capital funds (the "Partnerships") returned 9.4%1, net of fees and expenses, in the third quarter of 2012, bringing the year to date net return to 13.2%.  


  • The Importance of Due Diligence

    Let’s take two examples to convey the point: Wells Fargo (NYSE:WFC) and Bank of America (NYSE:BAC). Both were outstanding banks that were well capitalized in 2008. Both were considered to have navigated the financial crisis quite well and to avoid the loose lending practices made by many of their failed competitors. But by 2009 we saw exactly what differentiated the two.

    Wells Fargo acquired Wachovia shortly after Lehman failed in the fall of 2008. Wells was in no rush to buy Wachovia. The company poured over its financials and it initially concluded it couldn’t buy the bank without time for further examination. Citi promptly stepped in and made an offer with government assistance. A week or so passed and after conducting further research, Wells made a 180-degree turn and decided it could pay more than Citi, without government assistance. Fast forward to 2012 and Wells is making its largest profits in history.  


  • Stocks Trading for Less Than David Einhorn Paid for Them

    David Einhorn has achieved a 21.5% annualized return at his firm, Greenlight Capital, since he founded it in 1996, by investing in undervalued long positions and short positions. Four of his holdings are currently trading for less than he paid for them: Marvell Technology Group (NASDAQ:MRVL), WellPoint (WLP), Humana (NYSE:HUM) and Genworth Financial (NYSE:GNW).

    Marvell Technology (NASDAQ:MRVL)  


  • Is David Einhorn Short Lululemon?

    Yesterday shares of Lululemon (NASDAQ:LULU) fell sharply due to rumors that hedge fund manager David Einhorn has started shorting the stock.

    Einhorn has made a name for himself with high-profile short positions such as Lehman Brothers and Green Mountain Coffee.  


  • David Einhorn Buys More BioFuel Energy Corp

    David Einhorn increased his stake in BioFuel Energy Corp. (BIOF) by 62.85% at the average price of $3 on 09/06/2012, according to GuruFocus Real Time Picks. He owns 2,212,274 shares. The stock price has changed by 55%. The purchase brings his total holding of the company to 13.6%.

    Denver-based BioFuel Energy Corp. is a publicly traded company founded in 2005 that produces and sells ethanol, distillers grain and corn oil through two production facilities in Nebraska and Minnesota. BioFuel Energy Corp. has a market cap of $16.2 million; its shares were traded at around $4.42.  


  • The David Einhorn Family Business Earning a 43% Internal Rate of Return

    Interestingly, David Einhorn has seeded a venture capital investment firm that is run by his brother and father and is focused on providing capital to Midwest companies:

    MILWAUKEE — When the hedge fund manager David Einhorn was just another investment analyst in the mid-1990s, his family gave him $500,000 to get his fund, Greenlight Capital, off the ground. Now that he is a billionaire after a career of doing battle with large corporations, he has returned the favor.  


  • Why I Did Not Follow Einhorn and Invest in Marvel Semiconductors (MRVL)

    Following David Einhorn’s addition of shares of Marvell this quarter, I decided to take a look at it, if it makes sense for me to invest in it.

    I’m a value investor and out-of-favor, contrarian plays usually attract my attention. Here is my analysis and deep dive into the analysis for MRVL.  


  • David Einhorn's Top Picks from Health Care Sector

    David Einhorn is the head of Greenlight Capital, a hedge fund. He has positioned his portfolio to benefit from a repeal of Obamacare by buying mostly health care stocks. “While the stocks are already cheap, there is the additional unpriced upside in the possibility that the election changes the political landscape, resulting in a possible modification or repeal of Obamacare,” he said in his second quarter letter.

    These are his largest new buys in the second quarter: CIGNA Corp. (NYSE:CI), Coventry Health Care (NYSE:CVH), UnitedHealth Group (NYSE:UNH), Humana (NYSE:HUM) and WellPoint (WLP).  


  • Dude, Are You Getting a Dell?

    In the wake of disappointing earnings news at Apple, another computer hardware firm is becoming attractive from a value-perspective: Dell (NASDAQ:DELL). While DELL’s share price has taken a beating in the last 12 months – down almost 26% – an in-depth analysis shows that perhaps DELL was kicked around more than it deserved. And for a value investor, there is often no better time to make a move on a stock than when no one else wants it.

    No doubt DELL faces significant pressure in its PC business from competitors as well as consumers expecting a lower purchase price. DELL appears to be aware of this issue and has addressed it. As a result, DELL is making a sound effort to push further into the services area such as servers and cloud computing. Currently, services and storage represent only about 17% of total revenue,[1] a figure that should grow rapidly with DELL’s commitment to this segment. Furthermore, while true DELL largely missed on the tablet-craze, it could expect at least a small lift to product growth should they decide to enter this segment (especially if the product runs the new Windows operating system).  


  • Five Dividend Stocks From Top Gurus

    Now and then it is nice to take a peek over the shoulder of a successful investor to see what their high-conviction buys are. When you read a headline that “Warren Buffett is buying Company X,” you’re naturally inclined to do a little digging into Company X’s financials. After all, if it’s good enough for Buffett, it might be good enough for you.

    You have to be careful with this line of thinking, of course. The SEC filings that disclose the holdings of large investors are generally pretty dated by the time we have access to them. For all we know, the conditions that made a guru buy a given stock may no longer be valid by the time we read about it, and there are no guarantees that they haven’t already sold it. For these reasons, I tend to focus on larger holdings, the conviction buys that they are likely to hold onto for a while.  


  • David Einhorn Speaks at Greenlight Capital Re Investor Day [Video]

    David Einhorn speaks at Greenlight Capital Re (NASDAQ:GLRE), where he has been director since 2004:

    The video is here:  


  • David Einhorn Ups Stake in Semiconductor Maker Marvell Technology

    David Einhorn, head of hedge fund Greenlight Capital, made another large purchase of Marvel Technology Group (NASDAQ:MRVL), according to GuruFocus Real Time Picks. This time he upped his stake by more than 61%, buying 11,222,932 shares on July 16. The purchase brought his stake to a total of 18,372,247 shares.

    Marvell is a semiconductor manufacturer focused on Ethernet, cable and DSL-related communications devices. The company’s stock price has declined 26% over the last year and about 18% year to date.  


  • David Einhorn on Best Buy (BBY)

    Best Buy (NYSE:BBY) was particularly irksome. We thought that the core debate was whether or not the company could compete with Amazon. The answer at this point is that maybe it can and maybe it can't. (Despite the consensus view, our store surveys have repeatedly shown that there is no price benefit for consumers to browse at BBY and then purchase at Amazon.) There has been some deterioration in BBY's domestic performance, which we attribute to a lack of a "must have" consumer electronics product, rather than an erosion of BBY's competitive position. While we held the shares, three unexpected problems emerged: First, BBY depleted $1.3 billion of its cash resources by paying a double-digit multiple for Carphone Warehouse's share of the Best Buy Mobile profit stream. The market promptly revalued those earnings to BBY's mid-single digit multiple. Second, in the most recent quarter, BBY's international profits collapsed. In particular, comparable sales in its Chinese business fell 28% as the Chinese economy appears to have hit a wall. Finally, the company dismissed its CEO over his personal conduct, and also removed the Chairman for failing to respond properly to the CEO's misbehavior. As a result, the company has an interim CEO and is trying to come up with a strategy. We worried that this could lead to additional business disruption so we exited with a loss.  


  • David Einhorn on Dell (DELL)

    Dell (NASDAQ:DELL) proved to be a disappointment. We had thought that the growth in the non-PC business would be enough to offset the deterioration in the PC business. The non-PC growth was smaller than we'd hoped and the PC deterioration was worse than we'd anticipated. While DELL has a good balance sheet, it appears likely that management will try to use much of the cash to try to buy its way into better businesses. At a minimum, this will erode some of the value cushion that the cash balance creates. We exited with a loss.  


  • David Einhorn on CVH

    CVH is a regional managed care company with operations in the mid-Atlantic, Midwest and parts of the South. The company offers commercial risk-based insurance and has an expanding business in the government-sponsored Medicaid and Medicare programs. Problems with a recently-acquired three-year contract to provide managed care services to the Medicaid population in Kentucky caused the company to significantly reduce earnings guidance for 2012. This led to a large drop in the stock price. We believe the issues related to the Kentucky contract are manageable and finite, and CVH will return to breakeven or a profit on this contract in 2013 from a loss this year. Our average purchase price of $31.22 represents 8x our forecast for 2014 earnings net of $6 per share of cash and reflects our estimate of the negative impact of Obamacare. CVH closed the quarter at $31.79 per share.  


  • David Einhorn on Cigna (CI)

    CI is a managed care company with three primary divisions: Cigna HealthCare, Cigna Group Disability and Life, and Cigna International. Cigna HealthCare, which comprises about 70% of CI's profits, offers medium and large companies traditional risk-based insurance, in addition to administering plans for those that prefer to self-insure. Cigna HealthCare recently bought HealthSpring to enter the fast-growing Medicare Advantage market. Cigna Group Disability and Life is a low-growth, stable business. Cigna International, which provides insurance policies for individuals, as well as insurance and administrative services for multinational companies and governments, is growing at more than 20% per year. We believe that CI deserves a higher multiple because the plan administration business is a service business that doesn't take risk, and the other divisions do not warrant discounted values. Our purchase price of $45.42 per share valued CI at less than 8x estimated 2012 EPS and approximately 6x our forecast of post Obamacare 2014 EPS. CI shares closed the quarter at $44.00 each.  


  • David Einhorn on Marvell Technology Group (MRVL)

    Marvell Technology Group (NASDAQ:MRVL) was the other significant loser, as its shares fell from $15.73 to $11.28 during the quarter. MRVL gave tepid guidance and Wall Street has modestly reduced its estimates of earnings per share from $1.25 to $1.15 this year and from $1.45 to $1.40 for next year. MRVL has about $4 per share in cash and now trades at roughly 5x next year's earnings net of the cash on the balance sheet. Most of the cash is excess, and the company has commenced what we hope will be an aggressive share repurchase program. We have used the reduced stock price as an opportunity to increase our stake in the company.  


  • David Einhorn Second Quarter Letter: Exit Dell, BestBuy, Buys Cigna and Coventry Health Care

    David Einhorn just released his second quarter client letter. He bought into the managed care sector, including Cigna (NYSE:CI) and Coventry Health Care (NYSE:CVH). He also exited from Dell (NASDAQ:DELL) and Best Buy (NYSE:BBY).

    These are some excerpts:  


  • It's David Einhorn Morning on CNBC!

    On a bevy of subjects

    - Thinks Bernanke should raise rates  


  • SAC’s Cohen Follows Loeb and Einhorn in Starting Reinsurer for Capital

    Steven A. Cohen, the billionaire founder of SAC Capital Advisors LP, started a reinsurance company that can invest in his hedge fund, following Daniel Loeb and David Einhorn in entering the business to secure more permanent capital.

    SAC Re Holdings Ltd. is being run by Simon Burton and will focus on high-margin catastrophe coverage and casualty protection, the Bermuda-based company said in a statement today. The company’s investments will be managed by SAC Capital, which oversees about $14 billion out of Stamford, Conn.  


  • Valuing David Einhorn's Portfolio - The Discounted Cash Flow Model

    Discounted Cash Flow, a feature on GuruFocus’ new Valuations Tab, is a more encompassing method of valuing businesses than isolated ratios because it takes into account book value, current free cash flow, business growth rate and terminal value. The model arrives at an intrinsic value of a business that includes balance sheet value, future business earnings and earnings growth.

    Calculating the entire value of the business in this way gives a number that is comparable to the stock price. For instance, if a company has a DCF value of $10 and the stock is trading for $15, the stock is undervalued.  


  • Ideology + Investing = A Recipe for Disaster

    Today’s healthcare ruling has certainly got the talking heads going; the worst part of it all is that there are months and months of this still to come. I thought I would take the time to bring the political conversation back to what I really care about: great companies and investing. I thought I would take the time to scratch out an article dedicated to the crazies of the world: here’s a list of why most political diehards (on both sides) are likely to be poor investors:

    1) They Always Think They’re Right – Anytime that I listen to a political talk show, it’s always the same thing: “Here’s why I’m right and you’re wrong” (I'm paraphrasing). While that may work for winning political debates, it doesn’t work in investing; intelligent investors must always be cognizant of the fact that there is always somebody on the other side of a trade – and if you can't identify why they could possibly be selling why you're buying, there’s a good chance that you’re in for some unwanted surprises down the road.  


  • Lessons from an Auto Turnaround

    As superinvestors like David Einhorn, Joel Greenblatt, Mario Gabelli, and Berkshire Hathaway buy into GM, value investors start to look deeper into the auto industry to predict a possible turnaround. They start to think about whether their current strategies could lead to better earnings.

    To find out what will work in today’s auto industry, we have to carefully examine what has worked in the past. For investors looking into GM and Ford, "Guts: The Seven Laws of Business that Made Chrysler the World’s Hottest Car Company" by Robert A. Lutz, former President of Chrysler, is a fascinating read about the intricate strategies that made Chrysler a story of success. Here is a summary of what worked for one automaker:  


  • Reuters: Einhorn Makes Another Successful Short Bet, This Time with U.S. Steel

    David Einhorn, manager of hedge fund Greenlight Capital, has made several outstanding and much-discussed short investments. One has been overlooked, according to Reuters:

    Hedge fund manager David Einhorn, best known for his prescient short bet against Lehman Brothers and recently, Green Mountain Coffee Roasters, hasn't received the same attention for another notable bearish call - United States Steel.  


  • Stocks Trading for Less Than David Einhorn and Prem Watsa Paid for Them

    Talk of a potential quantitative easing by the Federal Reserve after it concludes its two-day meeting has lifted markets this week. The Dow Jones industrial average reached its highest level in a month on Tuesday. Most of the stocks in the portfolios of the best stock pickers all rose in tandem, but a few haven’t yet surpassed the investors’ original purchase prices. Some standout bargain candidates are David Einhorn’s Marvell Tech Group (NASDAQ:MRVL) and Prem Watsa’s Research In Motion (RIMM).

    David Einhorn  


  • David Einhorn Ups Seagate Technologies Stake Almost 60%

    David Einhorn, founder of hedge fund Greenlight Capital, increased his holding of Seagate Tech (NASDAQ:STX) 58.99 percent at the average price of $22.75 on June 1, according to GuruFocus Real Time Picks.

    Ireland-based Seagate Technologies the world’s leading provider of hard disk drives based on revenue, which Einhorn has been building a sizable position in recently. He originally bought 3,268,957 shares in the first quarter of 2011 at an average price of $14 per share. In the second quarter he added 8,236,416 shares at an average price of $16. In the third quarter he bought 2,943,600 shares at an average price of $13, and in the first quarter of 2012 he bought 89,153 shares at an average of $25. His most recent purchase on June 1 was of 8,575,900 shares and brought his holding to a total of 23,114,026 shares.  


  • David Einhorn's Comments on St. Joe

    From David Einhorn's first quarter letter:

    We have been short St. Joe (NYSE:JOE) for more than half a decade. David first discussed our position at the Ira Sohn conference in 2007, and then gave a second, more detailed presentation of our updated thesis at the 2010 VIC. The presentation highlighted that a number of JOE’s real estate investments were impaired and should have been reflected as such in the company’s financial statements. JOE and the bulls disagreed. We assume that JOE’s auditors did as well, seeing as they signed off on the 2010 year-end results without requiring any impairment.  





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