David Einhorn

David Einhorn

Last Update: 2014-02-14

Number of Stocks: 38
Number of New Stocks: 8

Total Value: $7,294 Mil
Q/Q Turnover: 15%

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

David Einhorn Watch

  • David Einhorn Initiates Position in Huntington Ingalls Industries

    David Einhorn is the president and founder of Greenlight Capital, a value-oriented hedge fund. Unlike other funds, Greenlight does not leverage its positions to increase returns, and the fund does not generate large trading volumes. Nevertheless, since the fund's inception in 1996, Greenlight has generated more than a 25% annualized net return. Einhorn is best known for short selling positions, most famously Allied Capital and Lehman Brothers, and his aggressive shorts in financials helped Greenlight prosper in its early days. However, he holds mostly long positions, emphasizing intrinsic value to achieve consistent returns and safeguard capital against market conditions. According to his latest 13G filings, Einhorn entered into a new holding in Huntington Ingalls Industries (HII) with 2,510,000 shares at an average price of $34.28.

    Huntington Ingalls Industries (HII)  

  • Friday Value Overview

    Ending the week we have David Einhorn’s quarterly letter, talking about Yahoo (YHOO), Warren Buffett on Bloomberg alluding to Berkshire Hathaway’s (BRK.B, BRK.A) Mastercard (MA) position, a note about the terrible jobs report, and the bubble in online couponing.

    One of my favorite gurus, David Einhorn, released his Q2 letter today. Not surprisingly, he dropped Yahoo (YHOO), which he had bought into in the first quarter believing the sum of the parts were worth significantly more than the stock price. As we now know, you can't trust the sum when one or more of the parts are Chinese. Einhorn also made comments on the Greek crisis, detailing how the game is rigged among rating agencies, the government, and European banks. Credit default swaps were like gasoline thrown on fire for the 2008 crisis. He is intimating that swaps on Greek and other struggling European countries have the potential to create another crisis. I've long thought credit default swaps should simply be banned, at least in the U.S. What's the economic benefit to them other than a distortion to the markets? While we're on common sense policies that will never be implemented, I also think we should implement an 80% capital gains tax rate on securities held less than a day. Call it the really short term capital gains rate.  

  • David Einhorn Buys Seagate and Drops Yahoo in Q2

    David Einhorn manages Greenlight Capital, a hedge fund with over $6 billion in assets. From inception to August 2006, Einhorn achieved 29% annual returns. He looks at companies intrinsic values which he believes will safeguard them regardless of market conditions. In his recently reported second-quarter investor letter, he announced that he bought one company, Seagate Technology (STX), and made a surprising exit out of Yahoo! (YHOO).

    Seagate Technology (STX)  

  • David Einhorn's Q2 Investor Letter

    David Einhorn of Greenlight Capital released his second quarter investor letter on Wednesday, which is full of musings and surprises. Einhorn opines about the Greek crisis, the US debt ceiling, credit ratings agencies and other pressing financial matters. Following is an overview of the Partnerships’ investing movements for the quarter, including details on their one new buy and their prompt exit from Yahoo (YHOO).

    The full letter is here.  

  • Who is Management Really Listening To?

    One of the most noticeable areas of difference between the first and fourth edition of Benjamin Graham’s “The Intelligent Investor” is that the chapter regarding management is much smaller in the final version. Graham writes in the final edition:

    Ever since 1934, we have argued in our writings for a more intelligent and energetic attitude by shareholders toward their management….Shareholders are justified in raising questions as to the competence of the management when the results (1) are unsatisfactory in themselves, (2) are poorer than those obtained by other companies that appear similarly situated, and (3) have resulted in an unsatisfactory market price of long duration.  

  • Fifth Street Finance CEO Buys 30,000 Shares

    CEO of Fifth Street Finance Corp. (FSC) Leonard M. Tannenbaum bought 30,000 shares on 06/21/2011 at an average price of $11.58. The total transaction amount is $347,400. Fifth Street Finance Corp. is a specialty finance company that lends to and invests in small and mid-sized companies in connection with an investment by private equity sponsors. The company has a market cap of $758.3 million; its shares were traded at around $11.65 with a P/E ratio of 11.7 and P/S ratio of 10.8. The dividend yield of Fifth Street Finance Corp. stocks is 11.2%.

    Leonard Tannenbaum is the CEO of Fifth Street Finance, and has been since October 2007. He is also chairman of the board. Mr. Tannenbuam founded a number of private investment firms, including Fifth Street Finance. Before that, he worked as an equity analyst for Merill Lynch. He resigned from his position as president of Fifth Street Finance in early 2010 at a board of directors meeting.  

  • Book Review: Fooling Some of the People All of the Time

    For the most part, David Einhorn seems to enjoy his privacy; you don’t hear much about Greenlight Capital in the press, and rarely hear from him in interviews. However, there is one event that has consistently been the scene where Mr. Einhorn has opened up and piqued the interest of investors: the Ira Sohn Conference. At last month’s event, he talked about Microsoft and CEO Steve Ballmer, saying his “presence is the biggest overhang on Microsoft's stock”. In the weeks since, this already hot topic that has been fueled even further by Mr. Einhorn’s speech and even sparked rumors that Ballmer may step down after the launch of Windows 8.

    In 2008, Einhorn grabbed headlines yet again with his short thesis for Lehman Brothers. A few weeks later, the company posted a surprising $2.8 billion quarterly loss; less than six months later, Lehman no longer existed.  

  • Einhorn Creates His Own Fort Knox

    Several prominent investors have invested in physical gold in recent years. Most prominent is David Einhorn of Greenlight Capital.

    Einhorn gained fame from shorting Lehman Brothers prior to the financial crisis. He obviously has a deep understanding of the financial system. So why is Einhorn creating his own private version of Fort Knox?  

  • The Dividend Stocks of David Einhorn: PFE, ESV, TRV, MSFT, CAH

    David Einhorn is the president of Greenlight Capital, which he founded in 1996 with less than $1 million. The fund has generated an annualized net return of greater than 22% since its inception and now manages assets totaling nearly $8 billion

    Einhorn is known by most as a notorious short-seller (he literally “wrote the book” about the grueling process when he penned "Fooling Some of the People All of the Time") thanks to the high profile positions he’s taken against companies like Allied Capital, Lehman Brothers and The St. Joe Company. But his fund is, by its own definition, a “long-short value-oriented hedge fund.”  

  • Ira Sohn Conference: David Einhorn on Microsoft and Delta Lloyd

    David Einhorn is president of Greenlight Capital Inc., which he co-founded in January 1996. Greenlight Capital is a value-oriented investment advisor whose goal is to achieve high absolute rates of return while minimizing the risk of capital loss. Greenlight’s investment philosophy is to combine the analytical discipline of determining fair value with a practical understanding of markets. David is Chairman of the Board of Greenlight Capital Re Ltd. (GLRE) and a Director of BioFuel Energy Corp. (BIOF). He is the author of "Fooling Some of the People All of the Time," published in May 2008. David graduated with a B.A. summa cum laude from Cornell University.

    (Einhorn spoke very quickly about Delta. It was hard to get down all the notes. If I can get a copy of the slide show I will provide more information.)  

  • David Einhorn’s Hedge Fund Greenlight Capital Portfolio Update

    Renowned hedge fund manager David Einhorn just reported the first-quarter portfolio of his hedge fund Greenlight Capital. Einhorn has been bearish and hedged his portfolio. The recent bull run of the stocks have hurt his performances. He discussed his new positions in Best Buy, Yahoo, and Delphi Automotive in his latest shareholder letter.

    David Einhorn buys Best Buy Company Inc., Yahoo! Inc., The Travelers Companies Inc., CVS Caremark Corp., General Motors Company, Hca Holdings Inc., Seagate Technology, Pfizer Inc., Microsoft Corp., Becton Dickinson And Co., Biofuel Energy Corp., Amdocs Ltd., sells Ensco Plc, Carefusion Corp., Everest Re Group Ltd., Cardinal Health Inc., Mi Developments Inc., Health Management Assoc., Health Net Inc., Potash Corp. Of Saskatchewan Inc., Tranatlantic Holdings Inc., Verigy Ltd., Flagstar Bancorp Inc., Capitol Federal Financial Inc. during the 3-months ended 03/31/2011, according to the most recent filings of his investment company, Greenlight Capital Inc. As of 03/31/2011, Greenlight Capital Inc. owns 41 stocks with a total value of $5.2 billion. These are the details of the buys and sells.  

  • How Alibaba Dispute Could Affect Yahoo and David Einhorn

    Yahoo! (YHOO) is a company shrouded in questions recently, especially by value investors, many of whom believe the stock is undervalued. Last week, value investor David Einhorn decided that the company’s financial results and uncertain earnings growth potential were more than made up for by the value of its $2.5 billion ownership interests in China, and purchased a large stake. This week, Yahoo! Inc. faced a disruption in those China-based holdings that caused its stock to dive over 7%. Einhorn’s fund, Greenlight Capital, established a new position in Yahoo in the first quarter at $16.93 per share. He noted several reasons for the decision, but said that Yahoo’s 40% stake in Chinese search engine Alibaba Group’s still-private holdings “which are separate and distinct from its ownership in the publicly-traded Alibaba.com” were its “most valuable asset.”

    Among the Chinese companies he referred to are Taobao, China’s leading eCommerce website which sold more merchandise than eBay last year, and Alipay, an online payment provider.  

  • Recent Thoughts on Market Valuations

    It seems that most of what I read these days points to an overheated market. Here is a breakdown of what a couple well-known and respected managers (and one college professor) have said on the topic as of late:

    GMO Quarterly Update (4/29/11) – At the end of the quarter, the S&P 500 stood at 1325. Over the last 10 years, the same index has produced an average of $56.6 of real earnings. Taken together, this means that the index finished the quarter with a cyclically adjusted price to earnings of 23.5 and suggests that the market is currently about 40% overvalued according to this popular and robust method … These factors taken together make it appear that we are approaching levels from which large drops in asset prices could easily occur.  

  • David Einhorn Hedge Fund Buys Yahoo!, Best Buy

    In his first-quarter investor letter, hedge fund investor David Einhorn disclosed that he had made two peculiar new additions to his portfolio – Yahoo! Inc. (YHOO) and Best Buy Inc. (BBY). The letter does not say how large the new positions in these companies are, but Einhorn describes them as “significant.” The amount of shares he bought will be reported in his upcoming 13-F filing. Einhorn’s firm, Greenlight Capital, paid $16.93 per share for Yahoo!. Yahoo! stock surged more than 3% to as high as $18.26 on Monday after Einhorn’s letter came out.

    In the letter, Einhorn discusses the new Yahoo! position:  

  • Greenlight Capital Q1 Letter

    Dear Partner:

    Greenlight Capital, L.P., Greenlight Capital Qualified, L.P. and Greenlight Capital Offshore (collectively, the “Partnerships”) returned (2.5)%, (2.9)% and (3.2)%1 net of fees and expenses, respectively, in the first quarter of 2011.  

  • A Gold Stock For Value Investors

    Gold has long been the exact opposite of what value investors look for in an investment. Subsequently, gold stocks have been ignored by large parts of the value investing community.

    However, some value investors do have macroeconomic concerns, and they would like U.S. dollar protection. David Einhorn owns SPDR Gold Trust (GLD) and value investor Mario Gabelli continues to load up on Newmont Mining (NEM).  

  • David Einhorn's Recommended Reading List

  • David Einhorn's Testimony Before The Financial Crisis Inquiry Commission

    Some very smart investors/economists etc. gave testimony before the Financial Crisis Inquiry Commission discussing the causes of the sub-prime meltdown, collapse of Lehman Brothers, the role of rating agencies, and other causes of the financial crisis . While, some of the testimonies are very interesting to listen to, most are quite lengthy (Warren Buffett's testimony lasted two hours), and I prefer reading rather than listening to the audio. H/T to my friend Steve of http://www.santangelsreview.com who transcribed David Einhorn's testimony before the commission, which took place in November 2010. In the interview, Einhorn details his thinking in late 2008; how he saw the disaster coming and shorted several major financial institutions.

    Below is the entire testimony in scribd format, if you prefer to listen to the audio, the link is here-David Einhorn, Greenlight Capital • MP3  

  • Fooling Some of the People All of the Time, A Long Short by David Einhorn

    “Remember, you can fool some of the people all of the time. Those are the people we need to concentrate on. “

    This caption appears below a picture of executives talking at a conference table in David Einhorn’s updated book, Fooling Some of the People All of the Time, A Long Short. The book is about a company called Allied Capital, a midcap stock involved with numerous financial shenanigans.  

  • Hedge Fund Greenlight Capital Buys S, BP, LYB, POT, SEMG, GDX, IM, BDX; Sells CIT, HNT, VRGY

    David Einhorn of Greenlight Capital Inc. reported his Q4 portfolio. As of 12/31/2010, Greenlight Capital Inc owns 39 stocks with a total value of $4.9 billion. These are the details of the buys and sells.  

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