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

  • 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.

      


  • GM Posts Strong 3rd Quarter, Reaches Agreement With Navistar

    Automaker General Motors Co. (GM) has recently reached an agreement with Navistar International Corp. (NAV) to expand its Chevrolet commercial truck portfolio.


    Last quarter results

      


  • Greenlight Capital Reaps 5% Yield From Vodafone

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital (a value-oriented investment advisor). He believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions.


    His portfolio is composed of 42 stocks and the following are the ones that pay the highest dividend yield.

      


  • The Top 3 Undervalued Stocks in David Einhorn’s Portfolio

    David Einhorn (Trades, Portfolio) is the founder of Greenlight Capital. He is a value-oriented investor who believes purchasing businesses below their respective intrinsic values will achieve consistent absolute investment return in a risk-averse manner, regardless of the market environment. He will take activist positions at times if the situation dictates that it needs to happen.


    Here are three companies from David Einhorn (Trades, Portfolio)’s portfolio that we find interesting at current levels:

      


  • Jana Partners Dumping Half of Hertz Holdings

    Guru Jana Partners (Trades, Portfolio) seriously started racking up its exposure to Hertz (NYSE:HTZ) at the end of 2014.


    Ultimately Jana Partners (Trades, Portfolio) owned about 41 million shares of the car rental business that owns the Hertz, Dollar, Thrifty and Firefly brands. Its network of rentals spans the globe with storefronts across North America, Europe, Latin and South America, Asia, Australia, Africa, the Middle East and New Zealand. Back at the end of August the company started decreasing its exposure, but now it has seriously cut back on its stake, selling 44.70% at once.

      


  • Guru Investors Sell Shares of David Einhorn, Dan Loeb's Green Brick Partners

    Several guru investors in a home builder company backed by prominent hedge fund manager David Einhorn (TradesPortfolio), Green Brick Partners (NASDAQ:GRBK), pulled out of their positions in the third quarter. Each of the other holders tracked by GuruFocus – besides heavily invested Daniel Loeb (Trades,Portfolio) – sold nearly half their shares or more.


    The two investors to sell out made a relatively quick entrance and exit. Leon Cooperman (TradesPortfolio) of Omega Advisors was the biggest investor to trade out of his position in the Dallas-based company, selling 245,681 shares purchased in the previous quarter. Paul Tudor Jones (Trades, Portfolio) also sold all of his 118,750 shares, which he bought the previous quarter. Each owned less than a percent of its shares outstanding, respectively.

      


  • David Tepper Sends Surprising Open Letter to TerraForm Board

    David Tepper (Trades, Portfolio) of Appaloosa Management isn’t a letter writing type of guy. The fact that he sent out an open letter to the board of TerraForm (NASDAQ:TERP) is very surprising. It isn’t a letter demanding change but a letter stating his concerns about TerraForm’s strategy and its relationship SunEdison (SUNE), an important position of David Einhorn (Trades, Portfolio)’s Greenlight Capital.


    The relationship between SunEdison and TerraForm Power is like a developer and a real estate management company. SunEdison develops and sells energy projects while TerraForm Power owns and holds power generation assets.

      


  • David Einhorn and Reasons Why Widely Followed Stocks Get Mispriced

    Over the weekend I was reading David Einhorn (Trades, Portfolio)’s book "Fooling Some of the People All of the Time." I’ve had it on my bookshelf for some time, and it has always taken a back seat to other books until I decided to pick it up recently.


    It’s an entertaining read, basically recounting his short thesis on Allied Capital (ALD) in great detail. It is a good book because it provides a glimpse into the significant amount of research and due diligence that a great investor like Einhorn performs in his investment approach.

      


  • 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 billion 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 (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 (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.


    Risks

      


  • Stocks With the Lowest P/E in the Coal Industry

    These are the companies in the coal industry that are trading with the lowest P/E ratio, according to the All-In-One screener by GuruFocus.


    Natural Resources Partners LP (NRP) is trading with a P/E ratio of 2.23; according to the DCF calculator the stock has a fair value of $11.51 while it is trading at about $1.76. That means it is trading with a margin of safety of 85%. The price has dropped by 86% during the last 12 months and is now 87.27% below its 52-week high and 9.32% above its 52-week low.

      


  • Market Posts Best October Returns in 4 Years

    October is not known as a month for strong market returns, but investors got a reprieve last month as returns were some of the best in the past four years.


    The DJIA gained 8.5%, its best performance since October 2011, while the S&P 500 was up 8.3%, the best monthly return in four years. Small-caps lagged behind, but the Russell 2000 still posted a 5.9% gain for the month.

      


  • David Einhorn and Dan Loeb Love This Company

    With a market cap under $400 million, a complex business structure and a winding operating past, it's little wonder that most investors haven't heard of Green Brick Partners Inc. (GBRK).


    Green Brick Partners is a residential real estate company that develops residential communities and holds interests in several different homebuilders. According to its website, it controls approximately 4,800 prime home sites, originates approximately 1,000 secured first lien loans each year and owns a controlling interest in four homebuilding companies in Dallas as well as the fifth-largest homebuilder in Atlanta.

      


  • Aflac: Dividend Aristocrats Part 18 of 52

    Aflac (NYSE:AFL) is the global leader in cancer insurance. The company sells supplemental life, health and accident insurance.


    Aflac generates about 75% of its premium revenue in Japan. The remaining 25% of premium revenue comes from the United States.

      


  • Apple's New iPhone Has Massive Deal for Investors

    One of the prominent stocks most hedge fund managers like to keep in their portfolios is Apple (NASDAQ:AAPL). Among the hedge fund managers, Carl Icahn (Trades, Portfolio) is one of the largest holders of the stock. According to GuruFocus data, Apple makes up 21.21% of Carl Icahn (Trades, Portfolio)’s portfolio.


    Apple designs, manufactures and markets mobile communication and media devices, personal computers, watches and portable digital music players worldwide. It reported higher-than-estimated third-quarter earnings on Oct. 27. The stock has increased by 9.20% year to date and performed well as compared to Technology SPDR (ETF) [XLK]

      


  • Humana, Dow Chemicals Among Stocks Larry Robbins Keeps On Buying

    Glenview Capital Management, a privately held investment management firm, was founded in 2000 by Larry Robbins (Trades, Portfolio). He manages a portfolio of 82 stocks with a total value of $25.250 million, and the following are the stocks he has been buying at least two quarters


    Applied Materials Inc. (AMAT)

      


  • General Motors Shines in Automotive Industry

    General Motors (NYSE:GM) is a popular stock among many hedge fund managers, with Warren Buffett as the largest guru shareholder. According to GuruFocus data, GM makes up 1.25% of Buffett's portfolio. General Motors, which designs, builds and sell cars, trucks and automobile parts, reported its third quarter earnings on Oct. 20, with higher-than-estimated earnings in such a robust environment, but its revenue fell below the estimations of analysts. Wall Street analyst estimated revenue of $39.2 billion but GM reported $38.8 billion lower by 1%. The stock has increased by 3.02% on year-to-date basis, but underperformed as compared to Consumer Discretionary SPDR (ETF) [XLY].


    Financial performace

      


  • David Einhorn's Greenlight Capital Releases Third-Quarter Letter

    David Einhorn (Trades, Portfolio)'s Greenlight Capital has released its third-quarter letter. In the letter Einhorn discloses the firm is down 17.4% so far this year. In the letter Einhorn discuss the largest drivers of Greenlight Capital 17% loss. The firm's investments in SunEdison (SUNE) and Consol Energy (NYSE:CNX) have placed a large role in the firm's net loss of 17%.


    Greenlight Capital's third-quarter letter

      


  • Looking at David Einhorn’s Hits and Misses as Fund Drops 16%

    In the third quarter, the pain at David Einhorn (Trades, Portfolio)’s hedge fund Greenlight Capital Inc. intensified. The 14.2% decline dragged his nine-month loss on the value of his investments to 16.9%, compared to a 12.3% drop for the S&P 500, meaning 2015 is shaping up to be his first year in the red in five years.


    The poor performance at the $12.3 billion firm was not entirely attributable to Greenlight’s long positions. Einhorn had only 20.9% net long exposure as of June 30, as he conservatively positioned his portfolio for a more negative economic environment and invested in other instruments.

      


  • Micron Technology a Unique Long-Term Investment Opportunity

    Over the last two years, the only company I have found interesting is Micron Technology (NASDAQ:MU). I began following it four or five months ago when I noticed that it was falling. In the past I had noticed that investors such as David Einhorn (Trades, Portfolio) and Seth Klarman (Trades, Portfolio) were investing in it, and both bought it at much higher prices than what it is trading now. Einhorn declared after the stock prices fell that it was still a good investment. I am sure that it is a better buy now than when it was over $30. Indeed, after a long fall and having studied Micron for some months, I decided a few weeks ago that it was too cheap to let it pass and started buying it, fortunately at much lower levels than Einhorn.


    I don't like to invest in a stock only because someone I admire owns it. I need to be convinced of it myself and focused on studying it. Fundamentally it looks cheap; what needed to be qualitatively analyzed is if the fundamentals can be sustained. As the conclusion of my investigations, I will discuss here a set of conditions that currently make Micron a unique buying opportunity. I will not focus on numbers such as EPS or fundamental metrics, because I believe that any sophsticated investor can find those out relatively easy. Rather, I will focus on the main factors that make Micron a sustainable long-term investment.

      


  • David Einhorn's Best Performing Stocks Year to Date

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital, which is a value-oriented investment advisor. 


    With help from the All-In-One Screener, the following are the stocks in his portfolio with the highest return since the beginning of the year.

      


  • David Einhorn Digs Coal

    According to a press release from Consol Energy (NYSE:CNX) on June 30 certain funds managed by Greenlight Capital have agreed to purchase 5,000,000 shares of the newly issued CNX Coal Resources LP (NYSE: CNXC) at the IPO price of $15.00 per share in a private placement. The IPO was completed in July with CNX selling a 21.1% stake of CNXC to the public and an additional 21.1% stake to Greenlight Capital in the private placement. Consol Energy continues to own 53.4% of the company and 100% of the General Partner which has a 2% interest.


    What is CNX Coal Resources LP? It is a growth-oriented master limited partnership, sponsored by Consol Energy. CNX Coal Resources owns a 20% undivided interest in Consol Energy's Pennsylvania thermal coal mining complex (Bailey, Enlow Fork and Harvey mines). They have been granted the right of first offer to acquire the remaining 80% undivided interest in the complex if they choose. The complex has generated about 80% of Consol Energy's coal sales in 2015. The complex consists of three underground mines and related infrastructure that produce high-BTU bituminous thermal coal that is sold primarily to electricity generators in the eastern United States.

      


  • David Einhorn Adds to Positions in General Motors, Bank of New York Mellon

    Value-oriented hedge fund manager David Einhorn (Trades, Portfolio)’s Greenlight Capital produced annual returns of 29% in its first decade of existence. Returns have been lower in recent years, but they have remained in positive territory.


    In the second quarter Einhorn both bought and sold shares as usual, but his acquisitions were larger and more noteworthy.

      


  • David Einhorn Continues to Add Micron Technology to His Position - Should You?

    Let's take a look at Micron Technology Inc. (NASDAQ:MU), a $27.18 billion market cap company, which provides semiconductor solutions worldwide. The stock delivers a negative return of more than 52% on a year-to-date basis. This crash is alarming for me, but it seems that some hedge fund managers take the opposite direction. Perhaps the reason behind this bullish sentiment is the fact that the stock has outperformed the market in 2013 and 2014.


      


  • Watch the Apple Event Live

    Apple (NASDAQ:AAPL) has introduced some of the world’s most innovative products and landed in the portfolio of many prominent value investors. It is the fourth most-held tech stock of gurus followed by GuruFocus, and the 14th most-held S&P 500 stock overall. Some gurus have also made it the top position in their portfolios, such as David Einhorn (Trades, Portfolio), and Carl Icahn (Trades, Portfolio), for whom it forms the first holding behind his own company.


    Consequently, many will be watching the Apple Event Wednesday to get the first look at what new products, upgrades and announcements the company has in the pipeline.

      


  • Market Continues to Look Expensive After Low August Returns

    August was undoubtedly a tough month for the market, with share prices plunging on Aug. 18 and leading to a selloff on Aug. 21, reaching what some consider the first meaningful correction in years.


    At the close of trading on Aug. 21, the S&P 500 fell 3.2% or 64.84 points to 1,970.89. According to the S&P Dow Jones Indices, the index lost $1.14 trillion in value that week. The DJIA was down 530.94 points to 16,459.75. Macro concerns that may have led to the selloff include Greece’s ongoing financial troubles, including its default on an IMF loan on June 30. China’s economic instability, however, gradually overtook Greece in the headlines, and was also blamed for spooking investors, as the country unexpectedly devalued its currency.

      


  • Greenlight Capital Re Is A Fantastic Bargain

    David Einhorn (Trades, Portfolio) is one of the more recognizable names in the investment industry. His firm, Greenlight Capital, has consistently posted market-beating returns over most of the past decade. While it’s costly to invest directly into his funds, there is a way to cash in on his investing prowess.


    Greenlight Capital Re (GLRE) is a publicly traded reinsurance company that Einhorn controls. The company insures property-and-casualty risks. It can then use its earnings and insurance float to largely follow his hedge fund’s strategy. However, this hasn’t been working out very recently.

      


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