David Einhorn

David Einhorn

Last Update: 2014-08-14

Number of Stocks: 40
Number of New Stocks: 5

Total Value: $7,177 Mil
Q/Q Turnover: 11%

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

David Einhorn Watch

  • 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 (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.  


  • 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. (GOOG), Vodafone Group Plc (VOD) and Western Digital Corp. (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. (GOOG)  


  • David Einhorn's Letter to Apple Shareholders



  • David Einhorn on CNBC Discussing His Apple Proposal

    David Einhorn on CNBC discussing his Apple proposal

      

  • 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 (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 (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 (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. (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 (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 (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 (MRVL), Vodafone (VOD), General Motors (GM), Apple (AAPL), Green Mountain Coffee Roasters (GMCR), Computer Sciences Corp. (CSC), Pitney Bows (PBI) and Huntington Ingalls (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 (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 (CMG), St. Joe Company (JOE) and Green Mountain (GMCR).

    David Einhorn announced his short position in Green Mountain Coffee Roasters (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 (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 (AAPL) and Best Buy (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:  





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