David Einhorn

David Einhorn

Last Update: 08-15-2016

Number of Stocks: 46
Number of New Stocks: 11

Total Value: $5,451 Mil
Q/Q Turnover: 16%

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

David Einhorn Watch

  • David Einhorn Speaks on Passive Investing, Mylan, His Cheapest Stock, the Fed

    Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas.

    Presenters at the annual conference that raises money for the Michael J. Fox Foundation of Parkinson’s Research and the Vickery Meadow Youth Development Foundation typically pitch one or several of their favorite stocks, which together have had a solid record. A portfolio of the recommendations from last year gained more than 40%, according to Caroline Cooley, a speaker from Crestline Investors.


  • 20 Questions With Mark Spiegel of Stanphyl Capital Management

    How and why did you get started investing? What is your background?

    I always had a casual interest in the stock market, going back to high school in the late 70s when I opened an account at a local broker and bought a stock about which I knew little except that the New York Times stock tables said it had a really low PE ratio-- I think it was 4, or something like that. It was an Amex-listed company called Outdoor Sports International (the ticker was OSI) and I think it wound up getting bought out, thereby maybe doubling the $200 or so I put into it. (I had no real idea what I was doing-- it was just semi-dumb luck!) Then in my senior year of high school I worked part time in the local Paine Webber office doing clerical work for one of the brokers-- basically, just helping him keep track of his customers' trades. In college though I mostly lost touch with stocks and when I graduated I wound up spending 17 years as a commercial and industrial real estate broker in the "outer boroughs" (Queens, Brooklyn and the Bronx) of New York City. I didn't realize it at the time, but working with a lot of different kinds of businesses actually turned into terrific "real world experience" for when I later became an investment banker and then a full-time investor. In the late 90s-- while I was still in the real estate business-- stocks were going crazy and my interest in them was rekindled. I wound up making a nice chunk of money buying low-PE microcap "value tech" stocks before they really took off like their big-cap brethren, while simultaneously losing some money shorting several of the bubble stocks because I didn't have the experience and fortitude to stick with them before they collapsed. However, on a net basis I'd made good money on the long side (and kept it-- I sold what at the time seemed to be "too early" but in fact was only "months" too early) and decided in January 2000 to sell my half of my real estate company to my partner to try to invest full-time. (Talk about top-ticking the market, and not in a good way!) I then spent a couple of years teaching myself a lot more about finance, studying scores of accounting and financial analysis textbooks, books about Wall Street history, etc. I then paid the most useful (and expensive!) stock market tuition possible: I fell in love with a microcap tech story-stock, rolled almost all of my previous profits into it and went to work for the company in a sales & marketing position. Well, being "inside" a story-stock and comparing that experience with its simultaneous press releases and earnings conference calls was one of the most valuable experiences an investor can have! After spending a year there I sold the stock at a huge loss, left the company (the product failed and most of the sales staff was laid off anyway), and decided that with a combination of my real-world business knowledge (from my commercial real estate days), book knowledge (from all the financial textbooks and history books I'd read) and story-stock knowledge (the experience I just related), I was ready to actually get a real job on Wall Street. However, this was 2003 and NO ONE was hiring, especially a 42 year-old guy with no previous jobs on the Street. Fortunately, one young guy running the New York office of a tiny investment bank saw my resume and was intrigued by the commercial real estate experience. He figured "This guy helped CEOs find their offices and warehouses and we help CEOs find their money, so if he can relate to CEOs one way he can relate to them other ways too." So he hired me on an "eat what I kill" basis (i.e., I'd get a percentage of the banking fees I brought in) and sponsored me for my Series 7 & 63 licenses, and I was off and running, cold-calling companies. I got a few deals done and simultaneously started investing again, mostly in microcaps but this time-- thanks to my own experience-- with a much better "smell detector," lol. My portfolio grew nicely and then in 2006 I went to a larger investment bank and had enough success there that I was recruited to a still larger bank in late 2007. All this time I was investing my own portfolio (even within the somewhat restricted confines of the various i-banks personal trading policies) and in 2009 I left my last i-bank to invest full-time, but this time with the goal of using my accumulated experience to open a hedge fund. I had really good returns in my personal account from 2005 through 2011 and had them audited to use as part of my fund marketing materials, and then in 2011 I opened Stanphyl.


  • Fantasy Sports Offer Opportunities for Investors

    In the U.S., it is football season all the way. The regular season is in full swing and armchair coaches are back after the fantasy draft, setting up their rosters each week for a taste of that number one spot. DraftKings and FanDuel are the most popular daily fantasy sports websites in the U.S. Last year, FanDuel and DraftKings recorded about $174 million and $106 million in revenues respectively, according to reports from Eilers & Krejick Gaming LLC. It’s figures like these that have attracted large investments by some of the bigger names in sports and entertainment.

    For instance, Alphabet Inc. (NASDAQ:GOOG), Comcast Corp. (CMST) and Time Warner Inc. (NYSE:TWX) hold a stake in FanDuel. Other companies like Fox Sports (NASDAQ:FOX), Major League Baseball, Major League Soccer LLC and even National Hockey League Inc. have thrown money into DraftKings. In fact just recently, Revolution Growth, the firm co-founded by Washington Capitals and Washington Wizards owner Ted Leonsis, was part of DraftKings’ latest $150 million round of financing. At one point, even the parent company to ESPN, Walt Disney Co. (NYSE:DIS), was looking to grab a seat at the table of fantasy league sports.


  • Amerco: A David Einhorn Bargain

    In August, Amerco (NASDAQ:UHAL) reported first quarter earnings per share of $7.51, missing estimates by $1.21, and revenue of $923.41 million, missing estimates by $17.91 million, despite being up 4.4% year-over-year. This is the catalyst that sent the stock down over 15%.

    However, for long term investors, the stock has been a boring market crusher. In the last decade, revenue rose 58%, net income grew 410%, EPS 537% and book value increased by 189%. All this contributed to a 344% rise in share price versus the S&P 500’s 65% gain.


  • Rite Aid Is a Solid Risk Arbitrage Trade

    Rite Aid (NYSE:RAD) is the third-largest drug store retailer in the U.S. and is the target of an acquisition by Walgreens Boots Alliance (NASDAQ:WBA).

    A few months ago, CNBC reported that the FTC is likely to approve the Rite Aid sale to Walgreens Boots Alliance. On Sept. 12 Walgreens provided an update, per the requirements stated by the U.S. Federal Trade Commission; for the acquisition to be closed, both must divest between 500 and 1,000 of its stores. That’ll leave them around 12,000 total stores.


  • Two Key Checklist Items

    I am not a big fan of going through specific “checklist” items one by one when evaluating an investment idea. I know this idea has gained enormous popularity in recent years, partly due to the good book The Checklist Manifesto, and partly popularized in value investing circles by Mohnish Pabrai (Trades, Portfolio).

    I respect Mohnish a lot, and I think his idea of evaluating previous investment mistakes (both his own mistakes and especially the mistakes of other great investors) is an excellent exercise.  

  • David Einhorn Purchases Stake in Calpine

    David Einhorn (Trades, Portfolio), founder of Greenlight Capital, purchased a 5,660,000-stake in Calpine Corp. (NYSE:CPN) in the second quarter. The trade had a 1.53% impact on Einhorn’s portfolio.

    Since Einhorn purchased his stake in Calpine, the company’s market price has tumbled by an estimated 16%.


  • Hedge Funds Love Liberty and John Malone

    The dust has now settled from the most recent round of hedge fund 13F filings. While these filings provide more information to the SEC than to the average investor, looking at the positions of the world’s most revered investors are buying and selling each quarter can provide some insight into their strategies helping the average investor generate some ideas themselves.

    That being said, the average investor should never blindly follow a hedge fund titan into a position. There are many reasons why not, but the most important is that it is impossible to tell exactly why the fund manager has entered the position in the first place.


  • Mohnish Pabrai Buys AerCap

    Mohnish Pabrai (Trades, Portfolio) acquired a new holding in AerCap Holdings NV (NYSE:AER) during the second quarter.

    In AerCap, Pabrai purchased 624,160 shares for an average price of $38.38 per share. The transaction had an impact of 7.1% on the portfolio. The stock has increased by 3% since.


  • David Einhorn Adds Calpine, Rite Aid, Amaya to Portfolio

    David Einhorn (Trades, Portfolio) of Greenlight Capital acquired three new holdings during the second quarter. They are Calpine Corp. (NYSE:CPN), Rite Aid Corp. (NYSE:RAD) and Amaya Inc. (NASDAQ:AYA).

    Einhorn is president and founder of Greenlight Capital, which was founded in 1996. He is an activist investor. Activist investors take positions in a company and pressure executives to implement change. He believes intrinsic value will achieve consistent absolute returns and safeguard capital, regardless of market conditions. Einhorn holds stock in 46 companies and is worth $5.4 million. His quarter-over-quarter turnover rate is 16%.


  • David Einhorn Adds Consol Energy and AerCap, Boots Michael Kors and Time Warner From Top 5

    David Einhorn (Trades, Portfolio) demoted Michael Kors (NYSE:KORS) and Time Warner (NYSE:TWC) from the top five positions in his portfolio during the second quarter, favoring AerCap Holdings (NYSE:AER) and Consol Energy (NYSE:CNX).

    According to a letter out today, three holdings remained constant in his hedge fund, Greenlight Capital’s portfolio – gold, General Motors (NYSE:GM) and Apple (NASDAQ:AAPL) – which has spent more than a year at the top. No details about the positions will be reported until Einhorn discloses his second-quarter portfolio in the next few weeks.


  • David Einhorn Sells 7 Million Shares of Consol Energy

    David Einhorn (Trades, Portfolio) sold 7 million shares of his stake in Consol Energy Inc. (NYSE:CNX) on June 1.



  • David Einhorn Buys Apple, Yahoo, Yelp

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital, a value-oriented investment adviser. During the first quarter he bought shares in the following stocks:

    Einhorn increased his stake Apple Inc. (AAPL) by 30.68% with an impact of 3.56% on the portfolio.


  • Einhorn Sells Consol Energy as Price Nearly Doubles

    David Einhorn (Trades, Portfolio) last week made a large reduction to his stake in Consol Energy (NYSE:CNX) after it inched up this year from its 2015 crash that cut into his returns.

    Einhorn, the president of hedge fund Greenlight Capital, sold 7 million shares of Consol on June 1, docking his position by 23.8%. After the sells, he holds 22.4 million shares, or 9.8% of the company, worth $347.8 million.


  • David Einhorn Triples Stake in American Capital Agency

    David Einhorn (Trades, Portfolio) tripled his stake in American Capital Agency Corp. (NASDAQ:AGNC) with the purchase of 3,250,000 shares in the first quarter.

    American Capital Agency is a real estate investment trust (REIT) that invests exclusively in residential mortgage pass-through securities and collateralized mortgage obligations on a leveraged basis. The firm primarily invests in U.S. government agency securities for which the principal and interest payments are guaranteed by a U.S. government agency such as the Government National Mortgage Association (GNMA) or a U.S. government-sponsored enterprise such as the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FMCC).


  • Top 10 Investing Apps

    There are a lot of investing and other financial tools available to the individual investor in today's world. Apps shouldn't be ignored. Conveniently sitting at your fingertips ready to provide analysis, ideas, money management and other data, apps are part of today's technology that investors should cherish and utilize.

    In this list I've gathered my 10 favorite apps that I use for investing and other financial aspects of my life every day. As always, please share your thoughts and comments below!


  • David Einhorn Comments on Apple

    We continue to own Apple (NASDAQ:AAPL), which has traded down to a single-digit PE of a bear case earnings. We believe there is tremendous value in Apple’s brand and growing global customer base that periodically buys new devices and increasingly buys additional services.

    From David Einhorn (Trades, Portfolio)'s first quarter 2016 conference call.  

  • David Einhorn Comments on Resona Bank

    Resona Bank (TYO:8308) shares fell 32% on the Bank of Japan’s implementation of the negative rates. Although negative rates present a headwind for all Japanese financials, Resona trades at just 60% of its book value, which we believe is too low for a bank earning a double-digit ROE without a credit or capital issue.

    From David Einhorn (Trades, Portfolio)'s first quarter 2016 conference call.  

  • David Einhorn Comments on Michael Kors Holdings

    Michael Kors Holdings (NYSE:KORS) beat earnings expectations for the third quarter in a row, and the shares rallied 42%. Our thesis that Michael Kors is not a fad but a fundamentally healthy brand is playing out. Earnings estimates are rising and the stock still trades at just 11x earnings when you back out the net cash position. The stock is cheap on an absolute basis and trades at a large discount to similar branded consumer goods companies.


  • David Einhorn Purchases 4 Stocks Near Multi-Year Lows

    David Einhorn (Trades, Portfolio), founder of hedge fund Greenlight Capital, turned a corner this year, gaining 3.0% net of fees in the first three months after five consecutive quarters of losses. Celebration was temperate in his shareholder letter out this week as he told investors he would “like to make it a habit” but did not manage the portfolio for mere short-sighted quarterly gains.

    “We think one of our advantages is the ability to be more patient than others, especially as investment horizons appear to be getting shorter,” he said.


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