David Einhorn

David Einhorn

Last Update: 07-23-2015

Number of Stocks: 44
Number of New Stocks: 8

Total Value: $7,787 Mil
Q/Q Turnover: 18%

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

David Einhorn Watch

  • David Einhorn on CNBC Discussing His Apple Proposal

    David Einhorn on CNBC discussing his Apple proposal

      

  • Apple – The Guru Winners, Losers and Buyers on Stock Pullback

    Apple (NASDAQ:AAPL)’s stock has gone from bad to worse this year, plunging 12% already this afternoon to $453 a share, significantly off of its 52-week high of $705 reached in September. Only recently talk abounded that Apple would hit $1,000 per share, and perhaps achieve first company with a trillion-dollar market cap status. Some GuruFocus Gurus escaped just in time, others lost, and still others are greeting this as a temporary market dip before Apple continues on to greatness.  


  • David Einhorn’s 2012 Conviction Picks, Hits and Misses

    Upon the release of Greenlight Capital’s fourth quarter shareholder letter this week, penned by hedge fund manager David Einhorn, it was revealed that some of Einhorn’s high conviction stocks, or companies that Einhorn kept buying over the latest quarters, came up short of the Guru’s expectations.

    “The disappointing fourth quarter result reduced our year from good to pedestrian,” Greenlight admitted. “While it is hard to view our performance last year as a catastrophe, it nonetheless falls short of our goals.”  


  • David Einhorn Comments on GM

    The long portfolio was marginally profitable, led by General Motors (NYSE:GM) which advanced from $22.75 to $28.83 in the quarter. GM repurchased more than 11% of its shares from the government, which has committed to sell the balance of its stake over the next year. GM’s reduced share count is quite accretive to its earnings, and we hope that the recent action is afirst step by management toward shareholder-friendly capital allocation. Even after the repurchase, GM holds substantial excess capital and has a good opportunity to further reward shareholders through additional share repurchases either from the government or in the open market.

    From David Einhorn's fourth quarter letter.  


  • David Einhorn Comments on Huntington Ingalls Industries

    Huntington Ingalls Industries (NYSE:HII) executed relatively well in difficult circumstances over our holding period and the investment compounded at a high single-digit rate of return despite the challenging macro and federal spending environment. We exited the long position with a small gain.

    From David Einhorn's fourth quarter letter.  


  • David Einhorn Comments on Pitney Bowes

    Our three year old thesis that Pitney Bowes (NYSE:PBI) was a “melting ice cube” due to secular declining U.S. mail volumes played out. The company has been in a perpetual restructuringmode and reported a series of disappointing quarters. In addition, the viability of the dividendcame into question. We covered the short position with a nice gain.

    From David Einhorn's fourth quarter letter.  


  • David Einhorn Comments on Computer Sciences Corp

    Computer Sciences Corp. (NYSE:CSC) is an IT consulting and outsourcing business. In 2011, the stock declined more than 50% due to deteriorating profitability, missed estimates, and controversy relating to the company's large contract with the U.K. National Health Service.We began purchasing shares in February 2012, after the company announced a change in management. We continued purchasing shares throughout the year and established a position at an average price of $27.78 per share. We view CSC as a fundamentally sound business that has had margins well below that of its peers as a result of organizational inefficiencies, historical mismanagement, and various non-recurring charges that obscured underlying earnings. In addition, the company owned several valuable assets, including its high-margin Equifax credit services affiliate that we believed could be monetized at an attractive multiple.

    We believe that CSC has earnings power in excess of $4.00 per share and that the new management team is capable of turning the company around to achieve those earnings, and possibly more. The early results have been promising, as CSC has reported two quarters of above-consensus earnings, monetized its Equifax affiliate and initiated a share repurchase program. CSC shares closed the year at $40.05 each. While the stock has appreciated in response to management’s progress to date, we continue to believe that the company has significant opportunities for margin improvement, free cash flow conversion and capital deployment under the leadership of its well incentivized and shareholder-friendly management team.  


  • David Einhorn Comments on Vodafone

    We have also increased our Vodafone (UK: VOD) holdings, as the stock fell sharply on newsthat just doesn ’ t seem that bad. After achieving an August peak of £1.92, the shares ended theyear at £1.54. At this valuation, it appears that the market is placing no value on VOD’s 45%stake in Verizon Wireless. And the Verizon Wireless stake is clearly quite valuable.

    Look at it from Verizon ’ s perspective: Historically, Verizon had a very profitable landline business, and Verizon Wireless owed it billions of dollars. Verizon received Verizon Wireless ’s free cash flow as it repaid the debt. For years, Verizon used its control to try to starve VOD by refusing to allow Verizon Wireless to pay dividends. Today, Verizon’s landline business generates no cash and the debt from Verizon Wireless has been repaid. Verizon’s 55% control stake in Verizon Wireless is probably worth mo re than all of Verizon’s market capitalization, and Verizon has become wholly dependent on dividends from Verizon Wireless to fund its parent company obligations and shareholder dividends.  


  • David Einhorn Comments on Marvell Technology

    Marvell Technology (NASDAQ:MRVL) was our biggest loser in 2012. MRVL shares fell from $13.85to $7.26 during the year. Earnings disappointments earlier in the year were followed by an end-of-year jury verdict of over $1 billion for infringement on certain patents held by Carnegie Mellon University. Having reviewed the proceedings, our view is that this is a case of a novel interpretation of the law by a local judge, combined with a hometown runaway jury. Although the legal system is inherently a crapshoot, we think that there are many reasons to expect the award to be substantially reduced or eliminated, either by the trial judge or on appeal. There are many grounds, but one of the simplest is that most of the damages were awarded based on foreign sales that are generally not protected by U.S. patents. The jury found that since the product was “designed and tested” in the U .S., damages were payable even though the manufacturing and sales happened abroad.

    Though we’d love to just admit we are wrong, sell the stock, and move on, we continue to like the opportunity here. MRVL is on the cusp of a large product transition which, to put it mildly, is not in the valuation. A year ago we were feeling pretty discouraged about our Sprint position, but we re-evaluated and determined that while the stock was down for good reason,our overall thesis was intact. It turned out to be a good decision. We have similarly re-evaluated and decided to buy even more MRVL. We expect its shares to sprint higher in 2013.  


  • Greenlight Capital (Einhorn) Q4 2012 Investor Letter

    Greenlight Letter Q4 byzerohedge. He comments on Marvell (NASDAQ:MRVL), Vodafone (NASDAQ:VOD), General Motors (NYSE:GM), Apple (NASDAQ:AAPL), Green Mountain Coffee Roasters (NASDAQ:GMCR), Computer Sciences Corp. (NYSE:CSC), Pitney Bows (NYSE:PBI) and Huntington Ingalls (NYSE:HII).  



  • David Einhorn Underperformed in 2012

    It was recently reported that Greenlight Capital, managed by David Einhorn, greatly underperformed the benchmark indices in 2012.

    Einhorn's fund was only up 8.3% in 2012 while the S&P was up 13.4% in the same period.  


  • What’s Up with David Einhorn’s Shorts - Chipotle Mexican Grill Inc.

    David Einhorn, founder of hedge fund Greenlight Capital, has moved markets with his powerful presentations on stocks he has decided to short and reaped sizable gains. The companies he targets typically have to respond to accusations leveled at them and after some time has passed, it becomes clearer whether Einhorn was right in his assessment. Perhaps most famous are his short positions in Chipotle (CMG), The St. Joe Company (JOE) and Green Mountain (GMCR) (read about his Green Mountain short here). Einhorn's portfolio is up in the low teens through October in 2012.

    Einhorn’s Oct. 2 revelation at the Value Investing Congress that his firm took a short position in Chipotle had a milder effect on its stock price that his previous short announcements – it fell 4.2 percent to $302.96 that day. Chipotle is the upscale burrito restaurant that focuses on fresh, sustainably grown, humanely raised, often organic ingredients. Since its founding in 1993, it has expanded to 1,350 restaurants and seen its stock soar 593% since going public in 2006.  


  • What’s Up with David Einhorn’s Shorts - The St. Joe Company

    David Einhorn, founder of hedge fund Greenlight Capital, has moved markets with his powerful presentations on stocks he has decided to short and reaped sizable gains. The companies he targets typically have to respond to accusations leveled at them and after some time has passed, it becomes clearer whether Einhorn was right in his assessment. Perhaps most famous are his short positions in Chipotle (CMG), The St. Joe Company (NYSE:JOE) and Green Mountain (GMCR) (read about his Green Mountain short here).

    Einhorn revealed his firm’s short position in St. Joe at the 2007 Ira Sohn Conference and presented an updated, 139-page thesis at the 2010 Value Investors Conference. Founded in 1936, St. Joe is the second-largest land owner in Florida, owning approximately 567,000 acres of land primarily in Northwest Florida it is either developing or using to grow and sell timber.  


  • What’s Up with David Einhorn’s Shorts: Green Mountain Coffee Roasters

    David Einhorn, founder of hedge fund Greenlight Capital, has moved markets with his powerful presentations on stocks he has decided to short and reaped sizable gains. The companies he targets typically have to respond to accusations leveled at them and after some time has passed, it becomes clearer whether Einhorn was right in his assessment. Perhaps most famous are his short positions in Chipotle (NYSE:CMG), St. Joe Company (JOE) and Green Mountain (NASDAQ:GMCR).

    David Einhorn announced his short position in Green Mountain Coffee Roasters (NASDAQ:GMCR) in October 2011 at the Value Investing Congress. Shares began to plunge immediately, eventually bottoming at a 52 percent loss by about a month.  


  • David Einhorn's Long-Term Position in NCR

    David Einhorn established a long position in NCR Corporation (NYSE:NCR) in the third quarter of 2010. The price he paid was under $14 for approximately 8.3 million shares. Einhorn's fund has continued to hold shares of NCR, and yesterday JP Morgan added NCR to their "Focus List."

    NCR is focused on ATMs and various other self-service kiosks. At the time when Einhorn acquired the stake he wrote in his shareholder letter, "It trades at 31 times trailing earnings, but in its most recent quarter reported blowout numbers- an 11% increase in revenue and a 142% increase in earnings compared to the same period the previous year- beating analyst estimates for the fourth quarter in a row. The sell-side is catching on, with current earnings estimates implying a forward P/E of 8 and a five-year PEG of 0.6. If the company comes close to those numbers, Greenlight should reap high returns."  


  • David Einhorn Buys Computer Sciences, General Motors, Yahoo!, Sells Apple, Seagate, Best Buy

    Renowned hedge fund manager David Einhorn just reported his third quarter portfolio. Einhorn made him fame with a few high profiled shorts that worked out nicely for him. Most recently he shorted Chipotle Mexican Grill and Green Mountain Coffee Roasters. When the news broke out, both stocks were hammered. This is the third quarter portfolio of David Einhorn. He bought into new positions in Computer Sciences Corporation, Yahoo, Babcock & Wilcox Co, and Aecom Technology. He also added to his positions in HMOS such as Aetna Inc, Cigna Corp. Among his sales, the most notable ones are Apple (NASDAQ:AAPL) and Best Buy (NYSE:BBY) He reduced his position in Apple by 25%, although it is still his largest position. He dumped Best Buy completely.

    David Einhorn wrote very favorably about Apple in May. But apparently the price appreciation or the recent business development at Apple has changed some of his views. This was what he wrote back in May:  


  • Einhorn Increases Short Positions

    On last week's conference call, David Einhorn sounded more bearish than at any time over the last three years.

    Einhorn said that he has increased his short portfolio over the last quarter:  


  • Einhorn's New Short, DMGT



    David Einhorn’s new bearish position on London-based Daily Mail and General Trust (DMGT:LN) was the biggest short taken by any hedge fund against UK company in light of new regulatory rulings.  


  • Will David Einhorn Buy Marvell Again as Price Drops Further?

    David Einhorn makes few investing mistakes. Since he reported his second-quarter portfolio, only one of his stocks is cheaper today than when he bought it: Marvell Technology Group Ltd. (NASDAQ:MRVL). When the price declined 28 percent in the second quarter, Einhorn said he used it as “an opportunity to increase our stake in the company.” His colleague Daniel Loeb of Third Point, meanwhile, exited his position. As the stock continued a 19 percent slide in the third quarter (42 percent year to date), it left many to wonder if it is still the deal Einhorn thought it was.

    The Company   


  • David Einhorn Comments on Chipotle Mexican Grill

    At the recent Value Investing Congress, David updated our view of Green Mountain Coffee Roasters (GMCR), elaborated on our General Motors (GM) and Cigna (CI) theses, and disclosed our short position in Chipotle Mexican Grill (CMG).

    ...  


  • David Einhorn Comments on Cigna

    At the recent Value Investing Congress, David updated our view of Green Mountain Coffee Roasters (GMCR), elaborated on our General Motors (GM) and Cigna (CI) theses, and disclosed our short position in Chipotle Mexican Grill (CMG).

    Regarding CI, we discussed that it trades at a discount to the HMOs, which as a group trade at low multiples. We then illustrated that CI is a higher-quality business that generates superior and more stable returns on equity than its peer group. With a substantial emphasis on Administrative Services Only business, CI deserves a higher multiple closer to the business process outsourcing companies (such as ADP) than to the HMOs. CI also has a significant and growing Medicare Advantage business and a fast growing international business. Finally, we noted that since the vast majority of its customers are large and mid-sized enterprises, CI has much less exposure to the known risks of Obamacare including health care exchanges. In fact, Obamacare may provide a growth opportunity for the company because it may finally afford CI the opportunity to compete meaningfully in the in the individual segment of the market.  


  • David Einhorn Comments on General Motors

    At the recent Value Investing Congress, David updated our view of Green Mountain Coffee Roasters (GMCR), elaborated on our General Motors (GM) and Cigna (CI) theses, and disclosed our short position in Chipotle Mexican Grill (CMG).

    ...  


  • David Einhorn Comments on Green Mountain Coffee Roasters

    From Greenlight Capital's third quarter letter.

    At the recent Value Investing Congress, David updated our view of Green Mountain Coffee Roasters (GMCR), elaborated on our General Motors (GM) and Cigna (CI) theses, and disclosed our short position in Chipotle Mexican Grill (CMG).  


  • David Einhorn's Greenlight Capital Q3 Investor Letter

    David Einhorn of hedge fund Greenlight Capital chides governments for monetary easing policies, defends gold and talks about his favorite investments in his third quarter investor letter:

    Dear Partner: The Greenlight Capital funds (the "Partnerships") returned 9.4%1, net of fees and expenses, in the third quarter of 2012, bringing the year to date net return to 13.2%.  


  • The Importance of Due Diligence

    Let’s take two examples to convey the point: Wells Fargo (NYSE:WFC) and Bank of America (NYSE:BAC). Both were outstanding banks that were well capitalized in 2008. Both were considered to have navigated the financial crisis quite well and to avoid the loose lending practices made by many of their failed competitors. But by 2009 we saw exactly what differentiated the two.

    Wells Fargo acquired Wachovia shortly after Lehman failed in the fall of 2008. Wells was in no rush to buy Wachovia. The company poured over its financials and it initially concluded it couldn’t buy the bank without time for further examination. Citi promptly stepped in and made an offer with government assistance. A week or so passed and after conducting further research, Wells made a 180-degree turn and decided it could pay more than Citi, without government assistance. Fast forward to 2012 and Wells is making its largest profits in history.  


  • Stocks Trading for Less Than David Einhorn Paid for Them

    David Einhorn has achieved a 21.5% annualized return at his firm, Greenlight Capital, since he founded it in 1996, by investing in undervalued long positions and short positions. Four of his holdings are currently trading for less than he paid for them: Marvell Technology Group (NASDAQ:MRVL), WellPoint (WLP), Humana (NYSE:HUM) and Genworth Financial (NYSE:GNW).

    Marvell Technology (NASDAQ:MRVL)  


  • Is David Einhorn Short Lululemon?

    Yesterday shares of Lululemon (NASDAQ:LULU) fell sharply due to rumors that hedge fund manager David Einhorn has started shorting the stock.

    Einhorn has made a name for himself with high-profile short positions such as Lehman Brothers and Green Mountain Coffee.  


  • David Einhorn Buys More BioFuel Energy Corp

    David Einhorn increased his stake in BioFuel Energy Corp. (BIOF) by 62.85% at the average price of $3 on 09/06/2012, according to GuruFocus Real Time Picks. He owns 2,212,274 shares. The stock price has changed by 55%. The purchase brings his total holding of the company to 13.6%.

    Denver-based BioFuel Energy Corp. is a publicly traded company founded in 2005 that produces and sells ethanol, distillers grain and corn oil through two production facilities in Nebraska and Minnesota. BioFuel Energy Corp. has a market cap of $16.2 million; its shares were traded at around $4.42.  


  • The David Einhorn Family Business Earning a 43% Internal Rate of Return

    Interestingly, David Einhorn has seeded a venture capital investment firm that is run by his brother and father and is focused on providing capital to Midwest companies:

    MILWAUKEE — When the hedge fund manager David Einhorn was just another investment analyst in the mid-1990s, his family gave him $500,000 to get his fund, Greenlight Capital, off the ground. Now that he is a billionaire after a career of doing battle with large corporations, he has returned the favor.  


  • Why I Did Not Follow Einhorn and Invest in Marvel Semiconductors (MRVL)

    Following David Einhorn’s addition of shares of Marvell this quarter, I decided to take a look at it, if it makes sense for me to invest in it.

    I’m a value investor and out-of-favor, contrarian plays usually attract my attention. Here is my analysis and deep dive into the analysis for MRVL.  


  • David Einhorn's Top Picks from Health Care Sector

    David Einhorn is the head of Greenlight Capital, a hedge fund. He has positioned his portfolio to benefit from a repeal of Obamacare by buying mostly health care stocks. “While the stocks are already cheap, there is the additional unpriced upside in the possibility that the election changes the political landscape, resulting in a possible modification or repeal of Obamacare,” he said in his second quarter letter.

    These are his largest new buys in the second quarter: CIGNA Corp. (NYSE:CI), Coventry Health Care (NYSE:CVH), UnitedHealth Group (NYSE:UNH), Humana (NYSE:HUM) and WellPoint (WLP).  


  • Dude, Are You Getting a Dell?

    In the wake of disappointing earnings news at Apple, another computer hardware firm is becoming attractive from a value-perspective: Dell (NASDAQ:DELL). While DELL’s share price has taken a beating in the last 12 months – down almost 26% – an in-depth analysis shows that perhaps DELL was kicked around more than it deserved. And for a value investor, there is often no better time to make a move on a stock than when no one else wants it.

    No doubt DELL faces significant pressure in its PC business from competitors as well as consumers expecting a lower purchase price. DELL appears to be aware of this issue and has addressed it. As a result, DELL is making a sound effort to push further into the services area such as servers and cloud computing. Currently, services and storage represent only about 17% of total revenue,[1] a figure that should grow rapidly with DELL’s commitment to this segment. Furthermore, while true DELL largely missed on the tablet-craze, it could expect at least a small lift to product growth should they decide to enter this segment (especially if the product runs the new Windows operating system).  


  • Five Dividend Stocks From Top Gurus

    Now and then it is nice to take a peek over the shoulder of a successful investor to see what their high-conviction buys are. When you read a headline that “Warren Buffett is buying Company X,” you’re naturally inclined to do a little digging into Company X’s financials. After all, if it’s good enough for Buffett, it might be good enough for you.

    You have to be careful with this line of thinking, of course. The SEC filings that disclose the holdings of large investors are generally pretty dated by the time we have access to them. For all we know, the conditions that made a guru buy a given stock may no longer be valid by the time we read about it, and there are no guarantees that they haven’t already sold it. For these reasons, I tend to focus on larger holdings, the conviction buys that they are likely to hold onto for a while.  


  • David Einhorn Speaks at Greenlight Capital Re Investor Day [Video]

    David Einhorn speaks at Greenlight Capital Re (NASDAQ:GLRE), where he has been director since 2004:

    The video is here:  


  • David Einhorn Ups Stake in Semiconductor Maker Marvell Technology

    David Einhorn, head of hedge fund Greenlight Capital, made another large purchase of Marvel Technology Group (NASDAQ:MRVL), according to GuruFocus Real Time Picks. This time he upped his stake by more than 61%, buying 11,222,932 shares on July 16. The purchase brought his stake to a total of 18,372,247 shares.

    Marvell is a semiconductor manufacturer focused on Ethernet, cable and DSL-related communications devices. The company’s stock price has declined 26% over the last year and about 18% year to date.  


  • David Einhorn on Best Buy (BBY)

    Best Buy (NYSE:BBY) was particularly irksome. We thought that the core debate was whether or not the company could compete with Amazon. The answer at this point is that maybe it can and maybe it can't. (Despite the consensus view, our store surveys have repeatedly shown that there is no price benefit for consumers to browse at BBY and then purchase at Amazon.) There has been some deterioration in BBY's domestic performance, which we attribute to a lack of a "must have" consumer electronics product, rather than an erosion of BBY's competitive position. While we held the shares, three unexpected problems emerged: First, BBY depleted $1.3 billion of its cash resources by paying a double-digit multiple for Carphone Warehouse's share of the Best Buy Mobile profit stream. The market promptly revalued those earnings to BBY's mid-single digit multiple. Second, in the most recent quarter, BBY's international profits collapsed. In particular, comparable sales in its Chinese business fell 28% as the Chinese economy appears to have hit a wall. Finally, the company dismissed its CEO over his personal conduct, and also removed the Chairman for failing to respond properly to the CEO's misbehavior. As a result, the company has an interim CEO and is trying to come up with a strategy. We worried that this could lead to additional business disruption so we exited with a loss.  


  • David Einhorn on Dell (DELL)

    Dell (NASDAQ:DELL) proved to be a disappointment. We had thought that the growth in the non-PC business would be enough to offset the deterioration in the PC business. The non-PC growth was smaller than we'd hoped and the PC deterioration was worse than we'd anticipated. While DELL has a good balance sheet, it appears likely that management will try to use much of the cash to try to buy its way into better businesses. At a minimum, this will erode some of the value cushion that the cash balance creates. We exited with a loss.  


  • David Einhorn on CVH

    CVH is a regional managed care company with operations in the mid-Atlantic, Midwest and parts of the South. The company offers commercial risk-based insurance and has an expanding business in the government-sponsored Medicaid and Medicare programs. Problems with a recently-acquired three-year contract to provide managed care services to the Medicaid population in Kentucky caused the company to significantly reduce earnings guidance for 2012. This led to a large drop in the stock price. We believe the issues related to the Kentucky contract are manageable and finite, and CVH will return to breakeven or a profit on this contract in 2013 from a loss this year. Our average purchase price of $31.22 represents 8x our forecast for 2014 earnings net of $6 per share of cash and reflects our estimate of the negative impact of Obamacare. CVH closed the quarter at $31.79 per share.  


  • David Einhorn on Cigna (CI)

    CI is a managed care company with three primary divisions: Cigna HealthCare, Cigna Group Disability and Life, and Cigna International. Cigna HealthCare, which comprises about 70% of CI's profits, offers medium and large companies traditional risk-based insurance, in addition to administering plans for those that prefer to self-insure. Cigna HealthCare recently bought HealthSpring to enter the fast-growing Medicare Advantage market. Cigna Group Disability and Life is a low-growth, stable business. Cigna International, which provides insurance policies for individuals, as well as insurance and administrative services for multinational companies and governments, is growing at more than 20% per year. We believe that CI deserves a higher multiple because the plan administration business is a service business that doesn't take risk, and the other divisions do not warrant discounted values. Our purchase price of $45.42 per share valued CI at less than 8x estimated 2012 EPS and approximately 6x our forecast of post Obamacare 2014 EPS. CI shares closed the quarter at $44.00 each.  


  • David Einhorn on Marvell Technology Group (MRVL)

    Marvell Technology Group (NASDAQ:MRVL) was the other significant loser, as its shares fell from $15.73 to $11.28 during the quarter. MRVL gave tepid guidance and Wall Street has modestly reduced its estimates of earnings per share from $1.25 to $1.15 this year and from $1.45 to $1.40 for next year. MRVL has about $4 per share in cash and now trades at roughly 5x next year's earnings net of the cash on the balance sheet. Most of the cash is excess, and the company has commenced what we hope will be an aggressive share repurchase program. We have used the reduced stock price as an opportunity to increase our stake in the company.  


  • David Einhorn Second Quarter Letter: Exit Dell, BestBuy, Buys Cigna and Coventry Health Care

    David Einhorn just released his second quarter client letter. He bought into the managed care sector, including Cigna (NYSE:CI) and Coventry Health Care (NYSE:CVH). He also exited from Dell (NASDAQ:DELL) and Best Buy (NYSE:BBY).

    These are some excerpts:  


  • It's David Einhorn Morning on CNBC!

    On a bevy of subjects

    - Thinks Bernanke should raise rates  


  • SAC’s Cohen Follows Loeb and Einhorn in Starting Reinsurer for Capital

    Steven A. Cohen, the billionaire founder of SAC Capital Advisors LP, started a reinsurance company that can invest in his hedge fund, following Daniel Loeb and David Einhorn in entering the business to secure more permanent capital.

    SAC Re Holdings Ltd. is being run by Simon Burton and will focus on high-margin catastrophe coverage and casualty protection, the Bermuda-based company said in a statement today. The company’s investments will be managed by SAC Capital, which oversees about $14 billion out of Stamford, Conn.  


  • Valuing David Einhorn's Portfolio - The Discounted Cash Flow Model

    Discounted Cash Flow, a feature on GuruFocus’ new Valuations Tab, is a more encompassing method of valuing businesses than isolated ratios because it takes into account book value, current free cash flow, business growth rate and terminal value. The model arrives at an intrinsic value of a business that includes balance sheet value, future business earnings and earnings growth.

    Calculating the entire value of the business in this way gives a number that is comparable to the stock price. For instance, if a company has a DCF value of $10 and the stock is trading for $15, the stock is undervalued.  


  • Ideology + Investing = A Recipe for Disaster

    Today’s healthcare ruling has certainly got the talking heads going; the worst part of it all is that there are months and months of this still to come. I thought I would take the time to bring the political conversation back to what I really care about: great companies and investing. I thought I would take the time to scratch out an article dedicated to the crazies of the world: here’s a list of why most political diehards (on both sides) are likely to be poor investors:

    1) They Always Think They’re Right – Anytime that I listen to a political talk show, it’s always the same thing: “Here’s why I’m right and you’re wrong” (I'm paraphrasing). While that may work for winning political debates, it doesn’t work in investing; intelligent investors must always be cognizant of the fact that there is always somebody on the other side of a trade – and if you can't identify why they could possibly be selling why you're buying, there’s a good chance that you’re in for some unwanted surprises down the road.  


  • Lessons from an Auto Turnaround

    As superinvestors like David Einhorn, Joel Greenblatt, Mario Gabelli, and Berkshire Hathaway buy into GM, value investors start to look deeper into the auto industry to predict a possible turnaround. They start to think about whether their current strategies could lead to better earnings.

    To find out what will work in today’s auto industry, we have to carefully examine what has worked in the past. For investors looking into GM and Ford, "Guts: The Seven Laws of Business that Made Chrysler the World’s Hottest Car Company" by Robert A. Lutz, former President of Chrysler, is a fascinating read about the intricate strategies that made Chrysler a story of success. Here is a summary of what worked for one automaker:  


  • Reuters: Einhorn Makes Another Successful Short Bet, This Time with U.S. Steel

    David Einhorn, manager of hedge fund Greenlight Capital, has made several outstanding and much-discussed short investments. One has been overlooked, according to Reuters:

    Hedge fund manager David Einhorn, best known for his prescient short bet against Lehman Brothers and recently, Green Mountain Coffee Roasters, hasn't received the same attention for another notable bearish call - United States Steel.  


  • Stocks Trading for Less Than David Einhorn and Prem Watsa Paid for Them

    Talk of a potential quantitative easing by the Federal Reserve after it concludes its two-day meeting has lifted markets this week. The Dow Jones industrial average reached its highest level in a month on Tuesday. Most of the stocks in the portfolios of the best stock pickers all rose in tandem, but a few haven’t yet surpassed the investors’ original purchase prices. Some standout bargain candidates are David Einhorn’s Marvell Tech Group (NASDAQ:MRVL) and Prem Watsa’s Research In Motion (RIMM).

    David Einhorn  


  • David Einhorn Ups Seagate Technologies Stake Almost 60%

    David Einhorn, founder of hedge fund Greenlight Capital, increased his holding of Seagate Tech (NASDAQ:STX) 58.99 percent at the average price of $22.75 on June 1, according to GuruFocus Real Time Picks.

    Ireland-based Seagate Technologies the world’s leading provider of hard disk drives based on revenue, which Einhorn has been building a sizable position in recently. He originally bought 3,268,957 shares in the first quarter of 2011 at an average price of $14 per share. In the second quarter he added 8,236,416 shares at an average price of $16. In the third quarter he bought 2,943,600 shares at an average price of $13, and in the first quarter of 2012 he bought 89,153 shares at an average of $25. His most recent purchase on June 1 was of 8,575,900 shares and brought his holding to a total of 23,114,026 shares.  


  • David Einhorn's Comments on St. Joe

    From David Einhorn's first quarter letter:

    We have been short St. Joe (NYSE:JOE) for more than half a decade. David first discussed our position at the Ira Sohn conference in 2007, and then gave a second, more detailed presentation of our updated thesis at the 2010 VIC. The presentation highlighted that a number of JOE’s real estate investments were impaired and should have been reflected as such in the company’s financial statements. JOE and the bulls disagreed. We assume that JOE’s auditors did as well, seeing as they signed off on the 2010 year-end results without requiring any impairment.  





  • 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)