David Einhorn

David Einhorn

Last Update: 05-16-2016

Number of Stocks: 43
Number of New Stocks: 5

Total Value: $5,897 Mil
Q/Q Turnover: 15%

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

David Einhorn Watch

  • David Einhorn Announces 3 Areas He Is Shorting

    After discussing long positioning that contributed to his 20% decline last year, David Einhorn (Trades, Portfolio) also disclosed some areas he is shorting on a Tuesday conference call for his reinsurer holding company, Greenlight Re (NASDAQ:GLRE).


    Greenlight Re tumbled to an investment loss of $281.9 million for 2015 compared with a gain of $122.6 million the prior year, in only its second down year in since inception. The fund faltered as its largest positions in Apple (NASDAQ:AAPL), General Motors Co. (NYSE:GM) and Michael Kors Holdings (NYSE:KORS) and others all posted losses for the year.

      


  • This Local Business Review Stock Could Soar by 250%

    It’s always interesting to look at stocks that just experienced significant plunges in the stock prices. There might be a lot of opportunities for investors to buy stocks at dirt-cheap prices. Yelp (NYSE:YELP) is a typical example.


    The company went public at the beginning of March 2012 at $15 per share. In the first day of trading, Yelp saw its share price surge rapidly, up to $26 per share. Two years later, in March 2014, its share price went as high as nearly $100 per share. Since then, its stock price has been on the down trend, and it was trading at $19.12 per share Thursday. In the fourth quarter of 2015, a lot of famous investors including Jim Simons (Trades, Portfolio), David Einhorn (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) got into the stock.

      


  • Outerwall: Examining Impact of Buybacks, Activists

    Outerwall (NASDAQ:OUTR) is a stock that has been struggling as the cash flows from Red Box are drying up much faster than investors have expected. Not only that, but Outerwall management has had the troubling habit of throwing good money after bad by “investing” in things like ecoATM – kiosks that allow you to turn in your old cell phones for cash, a concept that doesn’t seem to be gaining traction.


    This spending on business lines that were unlikely to succeed was all in an effort to extend the life of the company. Extending the life of a company is not always the best way to maximize value for shareholders. One thing I’ve observed is that dying businesses (or more euphemistically, businesses in “secular decline”) almost always turn out to be bad stock market investments. I think money can certainly be made from a cash cow like Red Box (even if the cash flow eventually will be zero), but not if the cash flow stream is attached to a public company. This is because of the inherent conflict of interest between a management team and the owners of the business. The owners of the business want to see the cash. The management team wants to continue getting a salary.

      


  • David Einhorn May Be Wrong About Yelp

    I have been bearish on Yelp (NYSE:YELP) for a long time now. The stock has lost roughly 40% of its value since I recommended shorting it just a few months ago. While I still think Yelp is not a good company, investors should book profits by covering their short positions.


    David Einhorn (Trades, Portfolio)’s Greenlight Capital recently disclosed that it has a 380,000-share stake in Yelp and following the disclosure, shares of Yelp have moved higher. While I don’t necessarily think that Einhorn is right about Yelp; there are a few reasons why the stock could rise in the future. Moreover, after a 40% drop, Yelp doesn’t have much room left to fall, and investors would be better off shorting other overvalued companies.

      


  • Why Did David Einhorn Buy Yelp?

    Greenlight Capital, the hedge fund run by David Einhorn (Trades, Portfolio) with over $10 billion in assets under management, purchased 380,000 shares in Yelp (NYSE:YELP), the beleaguered local search site and app. With the stock down almost 65% in the last year, why did Einhorn make the purchase?


    The new stake, which is worth about $6.46 million, represents 0.065% of Greenlight’s total capital, so it’s not the biggest or highest confidence stake in the company. Also, at 0.57% of the company’s total shares outstanding, Greenlight’s purchase isn’t a sign that he is planning on becoming an activist owner – at least not yet.

      


  • David Einhorn's Top 5 New Q4 Buys

    In the final quarter of a year that would end with his Greenlight Capital hedge fund down more than 20%, David Einhorn (Trades, Portfolio) purchased 15 new stocks, he disclosed Tuesday.


    Einhorn discussed his biggest new holding, Macy’s Inc. (NYSE:M), in his quarterly letter. He also bought Avandgrid Inc. (NYSE:AGR), Mylan NV (NASDAQ:MYL), Allergan PLC (NYSE:AGN) and DSW Inc. (NYSE:DSW) has his next largest positions. Greenlight’s public equity portfolio had a value of $5.5 billion and 48 stocks listed in total at quarter-end.

      


  • 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 (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



Add Notes, Comments

If you want to ask a question or report a bug, please create a support ticket.


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)