David Einhorn

David Einhorn

Last Update: 06-03-2016

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

  • Leading Stocks of Last Year Decline Year to Date

    Last year many investors holding value stocks were bruised by losses, while growth investors outperformed them for the year and on a five-year average annual basis, using the iShares S&P 500 Growth and Value ETFs as a rough measure. Though it is unsure what it will mean for investors sticking to value, at least in the first few months of this year some of the leading high-growth, high-valuation tech names they mainly shunned have fallen off their pedestal.


    Most notably, the highest returning stock of 2015, Netflix (NASDAQ:NFLX), has declined 14.2% year to date. The stock gained 134% for the year as one of the few propping up the S&P 500’s returns. With its 350.7 P/E ratio and declining earnings estimates, David Einhorn (Trades, Portfolio) of Greenlight Capital disagreed with the market’s perception too early and shorted the stock last year, weighing on his returns.

      


  • David Einhorn Sells Apple, Micron Technology

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital, a value-oriented investment advisor. He sold many stocks during the fourth quarter and the following are the sales with the highest impact on his portfolio.


    He reduced his stake in Apple Inc. (AAPL) by 44.02% with an impact of -9.04% on the portfolio.

      


  • Sun, Sun, Sun, Here David Einhorn Comes!

    David Einhorn (Trades, Portfolio) was born in Demarest, New Jersey. His family relocated to Milwaukee in 1976 after his mother convinced his father that she wanted to live in the place where she grew up and where her family still resided. Einhorn and his family moved to Fox Point, a village in Milwaukee that had a population of approximately 7,600 people, in 1976, the year Einhorn and his family relocated there.


    Einhorn spent a lot of his time in school working on the debate team, which affected his grades, although he gained critical thinking, organization and logic from his experiences on the debate team. All of these traits are quality characteristics of an intelligent investor. Upon graduation from high school, Einhorn went on to Cornell University where he majored in government, but he later became more interested in economics. Einhorn began to search for jobs that were on campus, and he found one working for Donaldson, Lufkin and Jenrette (DLJ). It offered the lowest paying salary, but Einhorn accepted the position because he liked the people who were involved in the recruiting process.

      


  • 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.

      


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