David Einhorn

David Einhorn

Last Update: 01-27-2016

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 Rebounds – Somewhat

    After suffering the worst year in his fund’s history, David Einhorn (Trades, Portfolio) has started 2016 on a better foot as some of his earlier ideas began to prove correct.


    Einhorn’s Greenlight Capital fell 20.2% in 2015 as Einhorn shorted the top two performing stocks in the S&P 500, Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN), and was long two of its 10 worst performing stocks, among other missteps. Greenlight also lost money in each quarter of the year, in which the S&P 500 returned 1.4% including reinvested dividends.

      


  • Guru Stocks Trading Below Peter Lynch Value

    According to GuruFocus All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with a wide margin of safety, and at least five gurus are shareholders.


    AerCap Holdings NV (AER) is trading at about $28 per share, and the Peter Lynch value gives the stock a fair price of $135.01, giving the stock a margin of safety of 79%.

      


  • Stocks in the Spotlight

    Indexes had a nice rebound along with oil on Tuesday on renewed optimism that oil producers will look to curb production in the near future. The problem with this is twofold. For one, Saudi Arabia has been pretty adamant that it plans to keep producing oil in order to preserve market share. Second, more supply is set to hit the market, this time from Iran whose sanctions have been lifted. Neighboring Iraq is also set to increase its oil production from 3.8 million barrels per day to 4 million plus.


    The main stock to watch on Wednesday, Jan. 27, will be Apple (NASDAQ:AAPL) whose shares are down after hours after it reported better-than-expected earnings but missed analyst estimates on revenue. Earnings came in at $3.28 per share on $75.9 billion in revenue vs. analyst expectations of $3.23 per share on revenue of $76.54 billion.

      


  • David Einhorn May Push for SunEdison Sale

    SunEdison (NYSE:SUNE) is an important position for David Einhorn (Trades, Portfolio) with a 6.8% stake (4% through Greenlight Capital). SunEdison does everything from development and finances, up to installment and operation of solar power plants. It is one of the largest renewable energy companies in the world (market cap of nearly $1 billion) and is headquartered in the U.S.


    Last year, it was one of Einhorn's biggest losers as the firm declined over 90% after announcing a controversial deal with Vivint in July 2015. This deal involves a complicated transaction with Vivint and TerraForm Power (NASDAQ:TERP). The latter is a company that often buys developed projects from SunEdison. Guru, and now activist shareholder, David Tepper (Trades, Portfolio) has been railing against the deal.

      


  • Polaris Industries and Spirit Airlines Are on the Casualty List

    Sometimes bad things happen to good stocks.


    In an effort to find bounce-back candidates, I compile a quarterly Casualty List of stocks that I think have been unduly punished by the marketplace.

      


  • Einhorn Invests in Macy's

    David Einhorn (Trades, Portfolio) has also jumped on the Macy's (NYSE:M) express along with fellow activist Starboard Value. The guru, who had a terrible 2015, is looking for some redemption, and the Macy's thesis makes a lot of sense.


    Retail, as a whole, is currently out of favor. Many firms are struggling, distressed or already bankrupt. Macy's is doing much better by comparison but isn't exactly knocking the ball out of the park, either, and its share price has suffered:

      


  • David Einhorn Comments on ARM Holdings

    Our thesis for our short position in ARM Holdings (ARM) was that falling chip prices,slowing smartphone growth and more competition from Intel would limit ARM’s potentialroyalty pool. Two of the three have occurred, but Intel’s progress has been disappointing.Also, ARM was more successful than we expected in offsetting its problems by increasing theroyalty rate it charges its customers. We covered the position at a small loss and moved on.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Micron Technology

    MU (NASDAQ:MU) was our biggest winner in 2014 and our biggest loser in 2015. We have written a lotabout it and have exited the position. When all the dust settled, our average purchase was at$19.93 and our average sale was at $22.14, generating an IRR of 14%. The coulda-woulda-shoulda perspective that this was a disaster is belied by the overall decent return we made onthe investment.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Cairn Energy

    We exited our position in Cairn Energy (LSE:CNE). The downturn in oil prices was negative but tolerable; however, the ongoing retroactive extraterritorial taxation claims by India made profitable ownership of Cairn impossible. We initiated a small position in early 2012 at £2.72and gave up at £1.54.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Bank of New York Mellon

    We decided to sell our position in Bank of New York Mellon (NYSE:BK) with a small profit. We becamemoderately less comfortable with the market exposure in both the Investment Services andInvestment Management segments and felt that the market was giving the company too muchcredit for potential earnings leverage to multiple Fed rate hikes.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Applied Materials

    We entered Applied Materials (NASDAQ:AMAT) at $20.31 after the Tokyo Electron deal fell apart, with a viewthat margin improvement through cost cutting and aggressive buybacks could lead to earningsoutperformance. Despite reasonable execution and lots of share repurchases, concerns aboutoverall spending levels in the semiconductor capital equipment space mattered more. The riskof a pending cyclical downturn caused us to exit at $18.21 with a small loss.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Mylan

    We initiated a position in Mylan (NASDAQ:MYL), a global generic pharmaceuticals company. MYLshares fell 29% in the first three quarters of 2015 and over 45% from their mid-year highsafter generics rival Teva abandoned a hostile takeover bid for the company. During the fall,the market became overly focused on a series of overhangs including potential earningsdilution from a proposed and ultimately failed buyout of Perrigo (a private-label OTC business); corporate governance concerns including an unusual takeover-defense mechanism;and widespread unease about the pharmaceutical sector amidst scrutiny of specialty pharmaceutical manufacturers like Valeant.


    We acknowledge eventual headwinds for the company’s branded EpiPen product, whichcould encounter competition from generics in late 2016. However, we see medium-termupside from a competitor recall, an announced share repurchase, and board review ofcorporate governance complaints. Ultimately, we expect MYL to earn close to $7 per share in2018, driven by a robust pipeline of respiratory, injectable and biologic drugs and by furthercapital deployment including share repurchases. We initiated our position at an average priceof $45.32, about 9x 2016 consensus EPS estimates. MYL shares ended the quarter at $54.07.

      


  • David Einhorn Comments on E ON SE

    We established a position in Macy’s (M), the operator of about 900 Macy’s, Bloomingdale’sand Bluemercury stores, at an average price of $45.69. Earlier in 2015, with the stock at $70,an activist argued that the store real estate could be separated to unleash a valuation in excessof $125 per share. Management determined a whole-company REIT wouldn’t provide therequired operational flexibility.


    Now, with the stock closing the year at $34.98, the math might make more sense. While it’sunlikely that management will reverse course on its own, it wouldn’t surprise us if a privateequity firm teamed up with a REIT to buy the company and unlock the value privately.

      


  • Einhorn Looks Back at Tough Year With 20% Losses



  • Gurus Are Buying These Stocks Trading Below Peter Lynch value

    According to GuruFocus' All-in-One Screener, the following are the stocks that are trading below the Peter Lynch value, and which more than five hedge fund gurus have in their portfolios.


    Goodyear Tire & Rubber Co. (GT) is trading at about $29 per share, and the Peter Lynch value gives the stock a fair price of $125.6, giving the stock a margin of safety of 77%.

      


  • Buffett Trims Chicago Bridge & Iron, Goldman Sachs, Walmart

    Warren Buffett (Trades, Portfolio) has been called "The Oracle of Omaha" for his impressive investing prowess. He follows a value investing strategy that is an adaptation of Benjamin Graham's approach. Following are the stocks in which he reduced his stakes during the third quarter.


    He reduced his stake in Chicago Bridge & Iron Co. (CBI) by 78.74% with an impact of -0.34% on the portfolio. The current stake is 0.06% of his total assets and 1.89% of the company’s outstanding shares.

      


  • Is There Value in Apple?

    Apple (NASDAQ:AAPL) is a company that is incredibly difficult to value because of its short product cycles. Earnings are high, true, but they could fall back quickly if and when next year’s product isn’t a hit. Costs are always harder to scale back as quickly.


    Gurus I greatly respect like David Einhorn (Trades, Portfolio) and Carl Icahn (Trades, Portfolio) have taken up their allocations to 20%-plus levels. Meanwhile, I have consistently underestimated how well Apple would do given its meteoric rise over the past decade.

      


  • 5-Year Lows: Kennametal, Buckle, Carpenter Technology, Suburban Propane Partners

    According to GuruFocus' list of five-year lows, these guru stocks have reached their five-year low prices: Kennametal Inc., Buckle Inc., Carpenter Technology Corp., Suburban Propane Partners LP.


    Kennametal Inc. (NYSE:KMT) reached $19.20

      


  • David Einhorn's Gamble on P/Es That Are Relatively Low

    David Einhorn (Trades, Portfolio)'s Greenlight Capital disclosed an equity portfolio valued at some $6.03 billion as of the end of the third quarter. The equity portfolio is mainly invested in Technology (35%), Consumer Discretionary (21%) and Industrials (19%) stocks.


    His three largest positions are: Apple (NASDAQ:AAPL), General Motors (NYSE:GM) and Michael Kors (NYSE:KORS), representing 20.5%, 8.1% and 4.9%. The guru increased his position in the three stocks. In Apple, he increased his exposure by 53%, in General Motors by 12% and in Michael Kors by 95% as of the end of September.

      


  • Guru of the Year: Nominate Your Favorite Investor

    As the year winds down, it’s time again for GuruFocus readers to pick their favorite investing manager to be crowned Guru of the Year. In the past, readers have chosen legends such as Carl Icahn (Trades, Portfolio), Charlie Munger (Trades, Portfolio) of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) and David Einhorn (Trades, Portfolio). Post your vote in the comments section below and check back to see who will be 2015’s Guru of the Year.


    Though value investors have relatively little concern for short-term performance and results, it’s clear that some gurus have had a better year than others. Bill Ackman (Trades, Portfolio)’s Pershing Square has generated headlines for its large stake in Valeant Pharmaceuticals (NYSE:VRX), which has been accused of improper business practices and accounting related to its partnership with a specialty pharmacy called Philidor Rx Services. Ackman has increased his position in the stock that has lost about half its value in the past few months, while other guru investors such as Wallace Weitz (Trades, Portfolio), Kyle Bass (Trades, Portfolio) and Jana Partners (Trades, Portfolio) have exited their holdings.

      





Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK