David Einhorn

David Einhorn

Last Update: 11-16-2015

Number of Stocks: 42
Number of New Stocks: 4

Total Value: $6,032 Mil
Q/Q Turnover: 18%

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

David Einhorn Watch

  • David Einhorn Buys Apple, Dillards and Sells Micron Technologies, Michael Kors

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital, a value-oriented investment advisor. He manages a portfolio composed of 42 stocks with a total value of $6.032 million and his largest trade in the third quarter involved Apple Inc. (NASDAQ:AAPL) with a huge impact of 7.03%.

    Einhorn raised his stake in Apple by 52.08% with an impact of 7.03% on his portfolio.


  • David Einhorn's Top 5 Positions

    Greenlight Capital, run by guru David Einhorn (Trades, Portfolio), does not require much of an introduction.

    Over the history of Greenlight Capital the firm has compounded its assets under management at something near a 20% per year rate. Einhorn manages this while running a concentrated long/short portfolio. His long portfolio is about $6 billion large. His short portfolio is only about one-third smaller so he is net about 33% long.


  • David Einhorn Comments on St. Joe Company

    St. Joe Company (NYSE:JOE), shorted at $36.90, covered at $17.17: After being short for almost 10 years, we decided to declare victory and move on, even though the shares remain somewhat overvalued.

    From David Einhorn (Trades, Portfolio)'s third quarter 2015 Greenlight Capital shareholder commentary.  

  • David Einhorn Comments on Robert Half

    Robert Half (NYSE:RHI), shorted at $28.96, covered at $41.61: A multiyear short where the company generally performed better than we expected.

    From David Einhorn (Trades, Portfolio)'s third quarter 2015 Greenlight Capital shareholder commentary.  

  • David Einhorn Comments on Intel

    Intel (NASDAQ:INTC), shorted at $34.23, covered at $29.28: We mitigated a portion of our long exposure to personal computers.

    From David Einhorn (Trades, Portfolio)'s third quarter 2015 Greenlight Capital shareholder commentary.  

  • David Einhorn Comments on Spirit Aerosystems

    Spirit Aerosystems (NYSE:SPR), purchased at $20.28, sold at $50.55: New management improved core margins, exited unprofitable development programs and initiated a stock buyback. This led to higher earnings and a higher multiple. We exited as the shares reached fair value.

    From David Einhorn (Trades, Portfolio)'s third quarter 2015 Greenlight Capital shareholder commentary.  

  • David Einhorn Comments on LAM Research

    LAM Research (NASDAQ:LRCX), purchased at $54.07, sold at $75.30: We believed the cycle was peaking, putting 2016 estimates at risk.

    From David Einhorn (Trades, Portfolio)'s third quarter 2015 Greenlight Capital shareholder commentary.  

  • David Einhorn Comments on Citizens Financial Group

    Citizens Financial Group (NYSE:CFG), purchased at $22.36, sold at $26.28: Lowered 2016 guidance which defeated our thesis that there was upside to estimates.

    From David Einhorn (Trades, Portfolio)'s third quarter 2015 Greenlight Capital shareholder commentary.  

  • David Einhorn Comments on UIL Holdings

    We established a position in UIL Holdings (NYSE:UIL) at an average price of $49.57 per share. UIL Holdings currently owns and operates several regulated utility assets in Connecticut and Massachusetts. In February, UIL Holdings announced that it was combining with Iberdrola USA, the U.S. division of Iberdrola, a large Spanish company with power and utility assets around the world. The Iberdrola USA business is currently made up of regulated utility assets in the Northeast, one of the largest wind energy portfolios in the U.S. and a well-regarded renewables development organization with a healthy pipeline of wind projects.

    Upon closing, UIL shareholders will receive $10.50 per share in cash and one share in a new publicly listed entity which will comprise stable utility assets and a growing renewables business. The pro forma entity will be less levered than its peers with a large tax asset and attractive renewables cash flows that we believe are not fully reflected in the stock price today.


  • David Einhorn Comments on Michael Kors

    Michael Kors (NYSE:KORS) designs, distributes and retails women’s accessories, footwear and apparel. Michael Kors shares fell 25% after North American comparable store sales fell 5.8% in the March quarter. A distribution center shutdown led to a temporary halt in ecommerce, and the winter product line was repetitive, cooling customer interest. The market went from expecting ongoing earnings beats to worrying the company is a fad that has run its course. Both issues are now resolved, and the fall product line appears much improved. We believe Michael Kors has multiple avenues of continued growth, including its international business and footwear. We established our position at an average price of $45.18, less than 9.5x March 2016 fiscal year earnings estimates net of the $4 per share in cash.

    From David Einhorn (Trades, Portfolio)'s third quarter 2015 Greenlight Capital shareholder commentary.  

  • David Einhorn Comments on Micron Technology

    Micron Technology (NASDAQ:MU) was our biggest winner in 2014. Unfortunately, we overstayed our welcome and gave back much of those gains this year. The shares peaked at over $36 last December before collapsing to $14.98 on Sept. 30. Our thesis has been that Micron Technology’s primary product, DRAM, has consolidated to three players, who are likely to create more industry profits compared to when DRAM production was highly fragmented.

    The problem is that structural industry improvement doesn’t make DRAM less cyclical. The large capital requirements force participants to make large investments in anticipation of future demand. If the industry overestimates demand, it still makes sense to operate at full capacity and oversupply ensues. This year, demand came up short, DRAM prices collapsed, and despite our concerns about PC demand, we missed the turn of the cycle. Those PC demand worries led us to sell LAM Research and Marvell Technology at good prices prior to a sell-off in each security and we shorted (and subsequently covered) Best Buy (NYSE:BBY), IBM (NYSE:IBM) and Intel (NASDAQ:INTC). Although all of these moves helped, we underestimated the extent of Micron Technology’s exposure to the PC demand shortfall.


  • David Einhorn Comments on SunEdison

    For the first part of the year SunEdison (NYSE:SUNE) was by far the fund’s biggest winner. The shares rallied from $19.51 to a peak of $32.13 on June 23 before collapsing to $7.18 by Sept. 30. SunEdison’s business is to develop solar and wind projects for major utilities and commercial customers that agree to buy the power over a very long term, often 20 years. These projects have purchase contracts from highly creditworthy counterparties and produce an average unlevered return on capital of 10% and 13% in developed and emerging markets, respectively. SunEdison makes money by selling the projects at a premium to investors seeking safe, long-term income.

    Given the low-rate environment, SunEdison thought it could make even more money if it created its own related yield vehicles to buy the projects and dividend the income to shareholders. It createdTerraForm Power (NASDAQ:TERP) for its developed markets projects and TerraForm Global(NASDAQ:GLBL) for its emerging markets projects. Initially this worked very well, and in July 2014SunEdison successfully brought TerraForm Power public. This July it brought TerraForm Global public with much less success.


  • David Einhorn Comments on CONSOL Energy

    CONSOL Energy (NYSE:CNX) is an Appalachia-based coal and natural gas production company. From its most recent high of $33.34 on May 8, the shares traded down gradually to $9.80, where they ended the quarter. There was no single moment where the shares fell sharply; it was essentially an orderly collapse. Yes, coal and natural gas prices both fell modestly during the decline. Yes, the company’s effort to bring its coal assets public in a separate vehicle was greeted coolly by the market. Yes, there is an oversupply of natural gas in the region, which has caused local realizations and quarterly earnings to fall below plan. We could have mitigated a portion of our loss by hedging natural gas, but with the price already near a historical low, we made the incorrect decision not to hedge the commodity risk.

    However, CONSOL Energy has had plenty of overlooked good news. The company went through a significant cost-cutting effort and cut its capital-spending budget aggressively. In July it reported fantastic drilling results and a significant success at a test well in the Utica Shale. Ordinarily, the market responds favorably to positive drilling news. In the current environment, it has responded more like a child receiving socks as a birthday present, “Gee, just what I always wanted … more, cheap natural gas.” We believe the market has undue concern about the near-term prospects for Appalachian coal and natural gas, leading it to discount the company’s long-term resource value far beyond anything we anticipated.


  • Dodge & Cox Comments on Petrobras

    Petrobras (NYSE:PZE) is the leading producer of oil and gas in Brazil, accounting for roughly 90% of Brazil’s oil production. In 2014, its stock price declined approximately 50% due to a corruption scandal involving kickbacks on procurement contracts, a weakening Brazilian Real, and increasing debt from years of outspending its cash flow. The lower oil price environment and high financial leverage have raised concerns about the viability of funding growth through additional borrowings. The CEO and other senior executives resigned earlier this year and were replaced with a new management team. Investors are skeptical about the company’s ability to rectify its problems and grow production. As a result, it trades at 2.6 times 2015 estimated operating cash flow and at a substantial discount to its net asset value, well below historical levels and that of its peers.

    Despite this perfect storm of challenges, the company managed to grow production in the first half of 2015 compared to the first half of 2014. This growth was driven by the company’s leading position in the deepwater fields, also known as “pre-salt,” of the Santos Basin, which is one of the Western Hemisphere’s largest oil discoveries in 30 years. These fields are prolific, low-cost, and should enable Petrobras to maintain or grow production over the long term. In addition to possessing excellent reserves, Petrobras has improved corporate governance: the company hired two independent investigative firms and meaningfully revamped internal governance structures. The new management team is displaying more discipline on capital spending; it has announced plans to reduce capital expenditures by 37% and focus on the company’s most profitable exploration and production projects. Combined with a large scale divestiture program, these efforts should lead to a stronger balance sheet.


  • Dodge & Cox Comments on Schlumberger

    Schlumberger (NYSE:SLB)—the world’s leading diversified oilfield services company—provides a variety of technology-based services that enable companies to identify hydrocarbon reservoirs, drill complex wells, manage production, and maximize recovery over the life of the well. The company is most dominant in international markets, where it is often larger than its next two biggest competitors combined. This leading scale contributes to its superior profitability and free cash flow generation. As a result, Schlumberger has historically traded at a premium valuation compared to its peers. That said, valuations for the Oil Services industry are low relative to historical averages; and, when compared to other leading global industrial companies, Schlumberger’s valuation at 2.3 times sales looks reasonable.

    Although the near-term outlook for oil prices is uncertain, we believe Schlumberger’s long-term growth prospects are attractive. Through its research and development (R&D) program and targeted acquisition strategy, Schlumberger is able to offer advanced and integrated services that are differentiated and improve a customer’s productivity per well. Furthermore, Schlumberger is in the midst of a restructuring program to increase efficiency and reduce capital intensity. Management has proactively adjusted its cost structure to deal with reduced activity levels in the current environment. These efforts have enabled the company to continue generating attractive levels of free cash flow, which provide strategic options for reinvesting in the business or for returning capital to shareholders. Continued industry consolidation should improve the competitive and pricing environment. Halliburton’s proposed acquisition of Baker Hughes would combine the second- and third-largest industry competitors. While weaker demand and a low oil price environment have weighed on Schlumberger’s share price, we believe its valuation, solid balance sheet, cash flow generation, and prospects make it an attractive long-term investment opportunity. We recently added to the position (a 3.1% holding on June 30).


  • Macy's Aims to Improve Growth, Signs Agreement With Luxottica Group

    Though Macy’s Inc. (M) reported a very disappointing third quarter, it recently it reached an agreement with Luxottica Group S.p.A. (LUX) to bring LensCrafters stores to as many as 500 Macy’s in the U.S. over the next three years, which will hopefully boost growth for the future.

    Macy's is an omni-channel retail organization operating stores and websites under the Macy's and Bloomingdale's brands. The company sells apparel and accessories, cosmetics, home furnishings and other consumer goods in 45 states. 


  • David Einhorn's Presentation on Consol Energy

  • Chris Davis' Stocks Trading Below the Peter Lynch Value

    Chris Davis (Trades, Portfolio) is the portfolio manager of Davis Financial Fund, an independent, employee-owned investment management firm founded in 1969. Davis Advisors manages more than $60 billion across several different asset classes.

    Here are the stocks in his portfolio that are trading below the Peter Lynch value.


  • David Einhorn Discloses Positions in Garmin, TerraForm, Vivint, CNX Coal

    David Einhorn (Trades, Portfolio), a value investor and founder of hedge fund Greenlight Capital, disclosed ownership of four new positions added in the third quarter: CNX Coal Resources LP (NYSE:CNXC), Garmin Ltd. (NASDAQ:GRMN), TerraForm Global Inc. (NASDAQ:GLBL) and Vivint Solar Inc. (NYSE:VSLR).

    Einhorn’s firm declined 17.4%, versus 5.3% for the S&P 500 Index, in the first three quarters of the year, led by poor performance of its holdings SunEdison (NYSE:SUNE) and Consol Energy (NYSE:CNX). Einhorn runs a concentrated portfolio, dedicating the most capital to its highest-conviction holdings. He discussed his process in his third-quarter letter:


  • Why Icahn and Others Still Own Apple

    Numerous top tier investors continue to hold Apple Inc. (NASDAQ:AAPL) shares including Carl Icahn (Trades, Portfolio), David Einhorn (Trades, Portfolio), Bill Nygren (Trades, Portfolio), and David Tepper (Trades, Portfolio). With the shares trading at what I believe is a low valuation, I thought I would review some of the risks and reasons to own Apple.



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