David Einhorn

David Einhorn

Last Update: 02-14-2017

Number of Stocks: 33
Number of New Stocks: 4

Total Value: $5,819 Mil
Q/Q Turnover: 7%

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

David Einhorn Watch

  • Bruce Berkowitz Beating Hedge Fund Managers at Their Own Game

    Every once in a while, there’s a saga on Wall Street that captures everyone’s attention. The fight over Florida real estate development company St. Joe (NYSE:JOE) earlier this year was that kind of saga.

    On one side was Bruce Berkowitz, founder of Miami-based mutual fund manager Fairholme Capital Management, St. Joe’s largest shareholder, with a nearly 30 percent stake, who believed that the company’s future would be bright once the real estate market recovered and poor management was out of the way. On the other was David Einhorn of Greenlight Capital, a New York–based hedge fund manager who had presciently shorted Lehman Brothers Holdings before it collapsed and was equally outspoken in betting against St. Joe.  


  • Weekly CEO Buys Highlight: RNN, IIG, FSC, GEO, DAN

    Last week’s top five stocks that were bought by their CEOs were RNN, IIG, FSC, GEO, and DAN. According to GuruFocus Insider Data, these are the largest CEO buys during the past week.

    REXAHN PHARMACEUTICALS INC. (RNN): Chairman & CEO, 10% Owner Chang Ho Ahn Bought 1,008,078 Shares  


  • David Einhorn’s Hedge Fund Greenlight Capital Portfolio Update

    Renowned hedge fund manager David Einhorn just reported the first-quarter portfolio of his hedge fund Greenlight Capital. Einhorn has been bearish and hedged his portfolio. The recent bull run of the stocks have hurt his performances. He discussed his new positions in Best Buy, Yahoo, and Delphi Automotive in his latest shareholder letter.

    David Einhorn buys Best Buy Company Inc., Yahoo! Inc., The Travelers Companies Inc., CVS Caremark Corp., General Motors Company, Hca Holdings Inc., Seagate Technology, Pfizer Inc., Microsoft Corp., Becton Dickinson And Co., Biofuel Energy Corp., Amdocs Ltd., sells Ensco Plc, Carefusion Corp., Everest Re Group Ltd., Cardinal Health Inc., Mi Developments Inc., Health Management Assoc., Health Net Inc., Potash Corp. Of Saskatchewan Inc., Tranatlantic Holdings Inc., Verigy Ltd., Flagstar Bancorp Inc., Capitol Federal Financial Inc. during the 3-months ended 03/31/2011, according to the most recent filings of his investment company, Greenlight Capital Inc. As of 03/31/2011, Greenlight Capital Inc. owns 41 stocks with a total value of $5.2 billion. These are the details of the buys and sells.  


  • How Alibaba Dispute Could Affect Yahoo and David Einhorn

    Yahoo! (NASDAQ:YHOO) is a company shrouded in questions recently, especially by value investors, many of whom believe the stock is undervalued. Last week, value investor David Einhorn decided that the company’s financial results and uncertain earnings growth potential were more than made up for by the value of its $2.5 billion ownership interests in China, and purchased a large stake. This week, Yahoo! Inc. faced a disruption in those China-based holdings that caused its stock to dive over 7%. Einhorn’s fund, Greenlight Capital, established a new position in Yahoo in the first quarter at $16.93 per share. He noted several reasons for the decision, but said that Yahoo’s 40% stake in Chinese search engine Alibaba Group’s still-private holdings “which are separate and distinct from its ownership in the publicly-traded Alibaba.com” were its “most valuable asset.”

    Among the Chinese companies he referred to are Taobao, China’s leading eCommerce website which sold more merchandise than eBay last year, and Alipay, an online payment provider.  


  • Recent Thoughts on Market Valuations

    It seems that most of what I read these days points to an overheated market. Here is a breakdown of what a couple well-known and respected managers (and one college professor) have said on the topic as of late:

    GMO Quarterly Update (4/29/11) – At the end of the quarter, the S&P 500 stood at 1325. Over the last 10 years, the same index has produced an average of $56.6 of real earnings. Taken together, this means that the index finished the quarter with a cyclically adjusted price to earnings of 23.5 and suggests that the market is currently about 40% overvalued according to this popular and robust method … These factors taken together make it appear that we are approaching levels from which large drops in asset prices could easily occur.  


  • David Einhorn Hedge Fund Buys Yahoo!, Best Buy

    In his first-quarter investor letter, hedge fund investor David Einhorn disclosed that he had made two peculiar new additions to his portfolio – Yahoo! Inc. (NASDAQ:YHOO) and Best Buy Inc. (NYSE:BBY). The letter does not say how large the new positions in these companies are, but Einhorn describes them as “significant.” The amount of shares he bought will be reported in his upcoming 13-F filing. Einhorn’s firm, Greenlight Capital, paid $16.93 per share for Yahoo!. Yahoo! stock surged more than 3% to as high as $18.26 on Monday after Einhorn’s letter came out.

    In the letter, Einhorn discusses the new Yahoo! position:  


  • Whitney Tilson's Presentation on St. Joe

    Whitney Tilson gave an impressive presentation on his largest short position: St. Joe (NYSE:JOE).

    Tilson stated, “We are short St. Joe. It’s our largest short position,” and, “We think David Einhorn’s thesis is correct and the stock is worth a half to a third its current price.”  


  • Greenlight Capital Q1 Letter

    Dear Partner:

    Greenlight Capital, L.P., Greenlight Capital Qualified, L.P. and Greenlight Capital Offshore (collectively, the “Partnerships”) returned (2.5)%, (2.9)% and (3.2)%1 net of fees and expenses, respectively, in the first quarter of 2011.  


  • A Gold Stock For Value Investors

    Gold has long been the exact opposite of what value investors look for in an investment. Subsequently, gold stocks have been ignored by large parts of the value investing community.

    However, some value investors do have macroeconomic concerns, and they would like U.S. dollar protection. David Einhorn owns SPDR Gold Trust (GLD) and value investor Mario Gabelli continues to load up on Newmont Mining (NYSE:NEM).  


  • Several Major Hedge Funds Suffer Losses

    Several major hedge funds suffered substantial losses in the first quarter of 2011, during which the Japan earthquake and tsunami occurred. The S&P 500 was down 0.1% in March, and up 5.42% in the first quarter. John Paulson

    John Paulson, whose hedge fund was ranked the third largest in 2010 at $36 billion, saw losses in his firm’s largest hedge fund, the Advantage Fund, according to Reuters. It fell 1.74% over the first three months and 4.4% in March alone. During the first two weeks of March when the Japan earthquake hit, the fund was down 6.14%.  


  • Einhorn/Berkowitz - Showdown in the Sunshine State

    You know a real-estate development is in trouble when the Hertz GPS denies that one of its major streets even exists. You really know it’s in trouble when Google Maps also shrugs, and asks if you wouldn’t like to know more about a similarly named town in Costa Rica.

    I had gone to the Florida Panhandle to find out more about an outfit named the St. Joe Company. It sounds like the sort of place that makes designer coffee cake or handcrafted pine furniture, but until recently it was the largest landowner in Florida, a former timber barony that has spent the past decade or so transforming itself into a real-estate developer. Its current roster of developments covers acres of some of the world’s most beautiful beachfront property: sugar-white sand and emerald-green waters unfolding along a pristine, undeveloped coastline. If heaven has beaches, this is what they look like.  


  • David Einhorn's Recommended Reading List



  • The Latest on St. Joe

    There were two good articles on St. Joe recently. For anyone living in a cave, Bruce Berkowitz of Fairholme Fund, is the largest shareholder of JOE, and David Einhorn of Greenlight Capital, is short of the company. Both are widely recognized as excellent value investors, and have incredible track records.

    An article in Barrons, was bearish on the company, stating that:  


  • Tejon Ranch Co (TRC): Like St. Joe’s with Berkowitz Upside at Einhorn Prices

    There has been a lot of press lately over St. Joe’s (JOE), a Florida-based real estate development company. Two prominent investors have taken opposite sides of the stock. Leading the short case is hedgefund manager David Einhorn of Greenlight Capital, who contends that the JOE’s land in Florida is no more valuable than cheap rural or timber lands. The chief bull is Bruce Berkowitz of the Fairholme Fund, who believes that the land can be developed into much more valuable real estate. With super investors on either side, other investors are left with a dilemma. If you go long and Einhorn is right, you stand to lose a lot of money. If you go short and Berkowitz is right, you could lose a significant amount of money. Investors are essentially left with a coin flip.

    But what if you could buy St. Joe at an Einhorn price and experience the upside that Berkowitz sees? Then if it turned out that the Einhorns of the world were right, you wouldn’t lose very much. If the Berkowitzes of the world turn out to be correct, you would have significant gains. It’s not a pipe dream—if you are willing to look in California instead of Florida. A different real estate development company, Tejon Ranch Co (NYSE:TRC) in California, fits our “what if” scenario. TRC owns 270,000 acres of real estate primarily in Kern County, with a small amount in Los Angeles County. TRC’s stock price currently implies that its real estate holdings are not much more valuable than run-of-the-mill farm or ranch land despite the fact that much of the land has entitlements that allow development and some of it has been developed.  


  • David Einhorn's Testimony Before The Financial Crisis Inquiry Commission

    Some very smart investors/economists etc. gave testimony before the Financial Crisis Inquiry Commission discussing the causes of the sub-prime meltdown, collapse of Lehman Brothers, the role of rating agencies, and other causes of the financial crisis . While, some of the testimonies are very interesting to listen to, most are quite lengthy (Warren Buffett's testimony lasted two hours), and I prefer reading rather than listening to the audio. H/T to my friend Steve of http://www.santangelsreview.com who transcribed David Einhorn's testimony before the commission, which took place in November 2010. In the interview, Einhorn details his thinking in late 2008; how he saw the disaster coming and shorted several major financial institutions.

    Below is the entire testimony in scribd format, if you prefer to listen to the audio, the link is here-David Einhorn, Greenlight Capital • MP3  


  • Fooling Some of the People All of the Time, A Long Short by David Einhorn

    “Remember, you can fool some of the people all of the time. Those are the people we need to concentrate on. “

    This caption appears below a picture of executives talking at a conference table in David Einhorn’s updated book, Fooling Some of the People All of the Time, A Long Short. The book is about a company called Allied Capital, a midcap stock involved with numerous financial shenanigans.  


  • Hedge Fund Greenlight Capital Buys S, BP, LYB, POT, SEMG, GDX, IM, BDX; Sells CIT, HNT, VRGY

    David Einhorn of Greenlight Capital Inc. reported his Q4 portfolio. As of 12/31/2010, Greenlight Capital Inc owns 39 stocks with a total value of $4.9 billion. These are the details of the buys and sells.  


  • Three David Einhorn Stocks You Can Get Cheaper Than He Did

    The Dogs of the Dow is a popular investing approach for many where investors buy the worst performing members of the Dow and hold them for a year. I’ve also heard the Dogs of Seth Klarman, and the Dogs of Warren Buffett. Here, I present to you the Dogs of David Einhorn. Einhorn is one of my favorite investors to follow. His long term track records speaks for itself and his reasoning for his decisions are always well explained, whether you agree with the decision or not. Since inception in 1996, Greenlight Capital has returned 21.5% annually.

    These three stocks can all be bought today for a price lower than what Einhorn paid for them.  


  • Einhorn Takes Stake In Georgia Bank

    David Einhorn's hedge fund Greenlight Capital Greenlight Capital recently revealed a new position in State Bank Financial (NASDAQ:STBZ). In his 13G filings with the SEC, Einhorn disclosed a 6.6% ownership stake in STBZ with 2,100,000 shares.

    The position is relatively small for Greenlight at over $30 million. As a point of reference, one of Einhorn's larger positions is Ensco (ESV) where Einhorn owns over $300 million of stock.  


  • Critique of David Einhorn's Sprint Purchase

    David Einhorn, manager of Hedge Fund Greenlight Capital recently disclosed new positions in Sprint Nextel as one of the largest holdings in his fund.

    Einhorn has been one of the more consistent and successful managers over the last decade. “Since inception in May 1996, Greenlight Capital,L.P. has returned 1,635% cumulatively or 21.5% annualized, both net of fees and expenses.”  


  • David Einhorn’s Hedge Fund Exits African Barrick Gold, Foster Wheeler, Lanxess

    This is a follow up article about what renowned hedge fund manager David Einhorn traded in the fourth quarter. He sold out his positions in African Barrick Gold, Foster Wheeler, Lanxess, and Rheinmetall AG.

    The information came from Greenlight Capital Q4 Letter. We have reviewed his top positions and new purchases. You can check the details of his portfolios here. This portfolio was from Q3. The detailed A4 portfolio will be released in about 3 weeks.  


  • Hedge Fund Greenlight Capital Discloses Top Holdings: Arkema, ESV, PFE; Buys BP plc, Sprint Nextel

    Hedge Fund Greenlight Capital just released its fourth quarter shareholder letter. The fund is run by renowned hedge fund manager David Einhorn. The fund disclosed new positions in BP and Sprint Nextel, with Ensco, Pfizer and Vodafone as the largest holdings.

    Due to its defensive position, Greenlight Capital LP slightly outperformed the market with a much smaller volatility. “Since inception in May 1996, Greenlight Capital,L.P. has returned 1,635% cumulatively or 21.5% annualized, both net of fees and expenses.”  


  • Greenlight Capital Q4 Letter

    Always excited to see what Einhorn is up to. Couple of new positions detailed as follows:

    During the quarter we established a new position in BP plc (NYSE:BP), one of the world's largest integrated energy companies, at an average price of $41.18 per share. The Deepwater Horizon oil spill in April 2010 caused a significant decline in BP's share price. BP has reserved nearly $40 billion pre-tax to account for costs related to this accident and has thus far sold $22 billion of non-core assets (with a stated target of up to $30 billion in divestitures), leaving the balance sheet in excellent shape. Pro forma for these asset sales and after taking into account our estimate of BP's eventual oil spill related expenses, we expect BP will still be able to earn nearly $20 billion per year from continuing operations. At less than 7x pro forma earnings, we purchased BP at a 25% discount to its peers. The company is well positioned to reinstate a dividend in early 2011 and generate higherproduction growth with its high-grade asset base. BP shares ended the year at $44.17 per share.  


  • David Einhorn vs. Bruce Berkowitz; Contrary on St. Joe, Agree on CIT Group

    We would like to look closely on the contrary views of the two greatest investors of our generation, Bruce Berkowitz and David Einhorn.

    The clash between Bruce Berkowitz and David Einhorn over Jacksonville, FLlorida based St. Joe (NYSE:JOE) has been widely covered. We realized their totally opposite view over the company. However, most of investors do not realize that they have almost contrary views on a lot of aspect. Also they do agree on one company, CIT Group (NYSE:CIT).  


  • Face To Face With David Einhorn: King World News

    Eric King of King World News just conducted an interview with David Einhorn. When asked about the Fed’s zero interest rate policy and other Fed actions being dangerous longer-term Einhorn responded, “I think that they’re quite dangerous. We just went through a period with mortgage borrowers and with mortgage borrowers what we saw, particularly relating to the adjustable rates and so forth, the teaser rates, is when the rates are at a particular level the borrowers are able to service the debt.

    [url=http://kingworldnews.com/kingworldnews/Technical_Guide.html]  


  • The battle between Einhorn and Berkowitz Over St. Joe Company Goes On

    In 2002, David Einhorn was asked at a charity investment conference to share his best investment advice -- Shorting sell Allied Capital. At the time, Allied was a leader in the private financing industry. Einhorn claimed Allied was using questionable accounting practices to prop itself up. In 2008, Einhorn advised the same conference to short sell Lehman Brothers.

    Einhorn was right on both cases.  


  • David Einhorn’s Favorite Long Pick of 2011

    In an interview with Insider Monkey earlier yesterday, hedge fund manager David Einhorn said hisfavorite long pick this year is Dutch insurer Delta Lloyd Group (Euronext: DL). Einhorn says the company is doing very well but is trading at about half of book value and about 6 times earnings. “That’s probably the only stock we have that I think can double and it would still be cheap“, said Einhorn.

    Delta Lloyd is a financial services group organized around three activity sectors: insurance – life insurance is about 71.9% of gross premiums issued and general insurance is about 28.1%, fund management, and banking services. The life business is the company’s largest segment and it focuses on pension buyouts from corporations.  


  • Stocks Ideas Shared by David Einhorn and Daniel Loeb: CIT, AAPL, HNT, CFN, BIOF

    Bess Levin of dealbreaker.com disclosed that David Einhorn’s Greenlight Capital Offshore Fund returned 4.3% for the month of December and 12.5% for the year of 2010:

      


  • David Einhorn: Big Banks Pickpocket Pension Funds

    David Einhorn was the guest on Bloomberg’s “In The Loop” program last Friday for two hours. Most of what he said about the European debt crisis, Apple (NASDAQ:AAPL), St. Joe Company (NYSE:JOE) and the gold market was covered by the media. But his remarks about the rating agencies were overlooked. He essentially said the credit rating agencies’ inaptitude facilitates big banks to pickpocket passive pension funds by front-running them or dumping their bad bonds on them. That’s why big banks want the rating agencies to stay. Here is what Einhorn said:

    “There are a bunch of high profile investors, bond investors who said ‘look we don’t rely on credit ratings for what we are doing, but those pension funds and stuff like that they need these credit ratings to protect themselves’. But the fact of the matter is it’s those people who say that they are not relying on credit ratings who are most depended on the credit rating system. Because what they do is they look at the credit ratings, they compare that to their own analysis, and they are looking for inefficiencies. And they know how the people who depend on credit ratings are going to behave. So, essentially by analyzing the credit better, they know how the other market participants are going to behave and essentially they pickpocket these passive pension funds both coming and going.”  


  • Deal Breaker's Bess Levin: Heads Up Play With David Einhorn

    Deal Breaker's Bess Levin had a interview with David Einhorn lately. You definitely wants to click through and read:

    Excerpt:
    If you’re going to commit financial fraud, you probably don’t want to find yourself sitting at a table across from David Einhorn, who will know what you’re up to and share it with the world. Similarly, if you’ve never played poker and have only ever had a 15 minute tutorial on the game, you probably should avoid playing with the Greenlight Capital founder, whose vastly superior skills will demonstrate just how much you suck. As I like to live on the edge, yesterday in an undisclosed location, I choose not to heed the wisdom of the latter. Over several hands, Einhorn and I discussed the new edition of his 2008 book, “Fooling Some Of The People, All Of The Time.”
      


  • David Einhorn on St. Joe Company and Apple

    Bloomberg’s Betty Liu interviewed David Einhorn today, the firm provided the brief clip of the interview on the web and a re-cap write-up of the interview at Bloomberg.com. Here are his comments on St. Joe Company and Apple:

    On St. Joe Company:  


  • BusinessInsider: A Deep Look Into David Einhorn's Investment Technique

    Business Insider has a good article entitled “A Deep Look Into David Einhorn's Investment Technique”.

    The article cited Einhorn’s book Fooling Some of the People All of the Time: A Long Short (and Now Complete) Story on the subject of his investment technique:
      


  • David Einhorn on European Debt Crisis and US Labor Market

    David Einhorn, president of hedge-fund operator Greenlight Capital Inc., talks about the European debt crisis and the U.S. labor market. Einhorn speaks with Betty Liu and Jon Erlichman on Bloomberg Television's "In the Loop."

    [center]
      


  • Charlie Rose Interviews David Einhorn; Einhorn Commenting on Apple

    What did I say? when the good thing happen in your life, take it and enjoy it. I was referring to the public appearances of David Einhorn this week. First we say him at CNBC, then we read about his speech at Reuters 2010 Investment Outlook Summit. It turns out, Einhorn was the guest of Charlie Rose on Monday, Dec. 6, 2010.

    The twenty-minute interview can be watched by following this link.  


  • David Einhorn Spoke at Reuters 2011 Investment Outlook Summit

    If you think we have had too much of coverage on David Einhorn since yesterday, you are not alone. But good things do not happen often, so enjoy them while you can.

    Today, Einhorn was the key-note speaker at Reuters 2011 Investment Outlook Summit. Reuters carried a series of articles on his speech, each providing a good piece of investment insight for the coming year:
      


  • Transcript for David Einhorn interview with Consuelo Mack

    In case you missed the broadcast, I found the following transcript for the recent David Einhorn interview by Consuelo Mack.

    Einhorn - Consuelo Mack
      


  • David Einhorn on Risk of Corporate Fraud and High Inflation

    At GuruFocus, we follow David Einhorn closely. Recently, he revised and added three chapters to his book:Fooling Some of the People All of the Time: A Long Short (and Now Complete) Story.

    Einhorn was also the first person who spoke publicly about Lehman Brothers fraud in Nov. 2007. This morning he tells CNBC how he spotted the red flags early on.  


  • Einhorn Sold Out LMT and EMC

    In this segment of the CNBC interview, David Einhorn talked about some of his long positions and answered some of the viewer questions.

    He said his shop has been quite slow these days, for the third quarter, his company has not bought any new stocks other than Sprint (S), which he finished buying. He talked about his long positions: Sprint (S), Apple (AAPL), Pfizer (PFE), Vodafone (VOD), and Carefusion (CFN) and short positions: St. Joe Company (JOE) and rating agencies – Moody’s (MCO) and S&P parent company, McGraw-Hill (MHP)  


  • Einhorn on His Long and Short Positions; Top Purchases 3Q10: AAPL, CFN, ESV, BR, IM

    In this segment of the CNBC interview, David Einhorn talked about some of his long positions and answered some of the viewer questions.

    He said his shop has been quite slow these days, for the third quarter, his company has not bought any new stocks other than Sprint (NYSE:S), which he finished buying. He talked about his long positions: Sprint (NYSE:S), Apple (NASDAQ:AAPL), Pfizer (NYSE:PFE), Vodafone (NASDAQ:VOD), and Carefusion (CFN) and short positions: St. Joe Company (JOE) and rating agencies – Moody’s (MCO) and S&P parent company, McGraw-Hill (MHP)  


  • David Einhorn's Latest Words or Wisdom

    Hedge fund titan David Einhorn, president of Greenlight Capital, talked to CNBC this morning.

    He told CNBC why he thinks low interest rates are "very dangerous long-term policy."  


  • Consuelo Mack Interview David Einhorn; Einhorn Top Sells: LMT and EMC


  • Consuelo Mack Interview David Einhorn; Einhorn Top Purchases: AAPL, CFN, ESV, BR, IM


  • Consuel Mack Interviews David Einhorn; Einhorn Top Holdings: CIT, ESV, PFE, CFN, AAPL, CAH

    On this week’s Consuelo Mack WealthTrack, a rare television interview with the prescient hedge fund manager who correctly called the precarious condition of financial firms from Allied Capital to Lehman Brothers and the financial system as a whole. Greenlight Capital’s David Einhorn discusses the current state of the markets and his investments with host Consuelo Mack.

      


  • Hedge Fund Greenlight Capital Buys AAPL, CFN, ESV, NVR, TRH, SYMM, Sells EMC, LMT

    This is the Q3 portfolio of hedge fund Greenlight Capital. The fund is run by David Einhorn, one of the best hedge fund managers.

    In his most recent shareholder letter, David Einhorn said that his funds returned 4.6%, 4.4%, and 4.2% net of fees in the third quarter, bringing the respective year to date net returns to 6.9%, 6.1%, and 5.0%.  


  • Berkowitz and Einhorn : By Joe who is right ?

    Read what both had to say. In various articles and releases . And frankly. It is very interesting scenario. And one that has a lot of lessons for the average Joe to understand. For me at least. I have found that Berkowitz has some stocks I fundamentally cant buy as I don’t get it quantitatively. And with Einhorn the same is true .

    . But I Like Einhorn as he is very human and his ego is in check and he is willing to admit missteps and pokes fun at himself. I kinda admire that. Berkowitz is a bit less approachable and identifiable. Now I don’t like the way Berkowitz took Einhorns requests. This sends a message to me that Berkowitz isnt being a neighborly value investor. Didn’t care for his attitude. Or his rebuttal. Very unprofessional. But I sort of understand. As a value investor we make decisions and are inner individuals who don’t run with the crowd. And this confrontation sets up the ultimate question. Who is right ?  


  • DCF Model Cannot Be Applied to Unpredictable businesses like St. Joe

    There has been wide coverage over the clash on the valuations of St. Joe company between Bruce Berkowitz and David Einhorn. Both of them are great value investors. But they have contrary views on St. Joe. Bruce Berkowitz is buying the shares, and wants to buy all the shares if possible, while David Einhorn is shorting the stock.

    These are the related articles we have published about this topic:  


  • Buffett Might Side With Einhorn Over Berkowitz on St. Joe Position

    It doesn’t get much more interesting than the two opposing positions that David Einhorn and Bruce Berkowitz have on Florida land developer St. Joe.  


  • Ensco releases Q3 results, Einhorn sitting on nice gain

    David Einhorn’s Greenlight Capital opened a large position in Ensco plc (NYSE:ESV) in the second quarter. BP’s Deepwater Horizon oil spill and the federal government’s drilling moratorium in the Gulf caused Ensco’s share price to fall from the low $50’s to the mid $30’s. Einhorn now holds more than 5% of the company at an average cost of $39.41. At today’s price, that’s nearly a 20% gain.

    Quick background on Ensco: They’re an oil and gas contract driller with 41 jackup rigs, 8 ultra-deepwater semisubmersible rigs (in operation or under construction or repair), and 1 barge rig. They operate throughout the world and are based in the U.K.  


  • Slideshows From The Value Investing congress

    This will be my last article on the value investing congress.

    Most of the speakers had slideshows which accompanied their presentations. I have embedded all the speakers slideshows from the congress and embedded them here. Each document will contain a brief introduction.  


  • Value Investing Congress Presentations

    Thanks to Valuehuntr, here are some of the best presentations from the NYC Value Investing Congress:

    Field of Schemes: If You Build It, They Won’t Come (David Einhorn)  


  • Poor Old JOE

    Growing up in the Florida citrus industry is great training for a value investor. Farming is a wonderful classroom. There are superior businesses and inferior ones. Some businesses are inherently profitable, while others (including family farms) are not. Steady positive cash flow is a beautiful thing. And you don't need a textbook to define free cash flow once you go without it.

    I also learned to be wary of asset valuations, especially when someone else (or even the market) is providing the number. The 1980's are memorable for this reason. Many in the citrus industry borrowed heavily to buy/plant more citrus acreage at ever-rising costs. After all, citrus prices were only going higher, thanks to overseas demand. Land values would certainly follow. For a time, it was a self-fulfilling prophecy. Higher prices provided confirmation of the thesis and it continued.  


  • CNBC Whale Watch: Berkowitz vs. Einhorn

    The following video serves to highlight the issue rather than providing detailed information:



  • Bruce Berkowitz Responds To Einhorn: I Want To Buy You A Box Of Chocolates

    As you may know, on Wednesday, David Einhorn made the announcement to the public that he's shorting St. Joe.

    At the recent Value Investing Conference, which was attended by over 500 people and covered by dozens of media outlets, Einhorn gave an emphatic 139-page presentation on why he's shorting St. Joe, a real estate development company.  


  • Bruce Berkowitz Debates with Real Money, Buying More St. Joe Company and AIG

    Before presenting his bearish case to VIC, David Einhorn called Bruce Berkowitz and offered to debate over the investment merits of the St. Joe Company (NYSE:JOE). Until the news hit the wire, Einhorn was still waiting for Berkowitz’s call.

    St. Joe Company stock decline about 10% after Einhorn’s presentation from over $24 to around $22 yesterday. At the time of this writing, the stock declined another 9% to a little over $20 per share.  


  • The Long And Short Of The St. Joe Company

    Today, David Einhorn reiterated his short thesis on St. Joe Company at VIC. A little over three months ago, the topic was well debated here at GuruFocus. As it turns out, much of Einhorn's thesis has not changed since 2007 -- the numbers have changed, but the core is inact. Here I repost a good write-up by Greenbackd who presented both sides of the debate:

    ------------------------------------------------------------------------------------------------------  


  • David Einhorn's Short Thesis on St. Joe Company

    This might be the top story of the day: David Einhorn presented a thesis to short St. Joe Company today at Value Investing Congress in NYC.

    Here is the presentation:  


  • David Einhorn's Short Thesis For St. Joe: The Highlight of The Value Investing Congress

    I am lucky to be attending the Value Investing Congress. I took extensive notes on every speech and hope to post each one on GuruFocus over the next few days, in addition I will be posting a couple of interviews I plan on conducting. To follow my live updates from the Congress sign up for my Twitter alerts http://twitter.com/valuewalk

    David Einhorn was by far the best speaker of the Congress in my opinion. He focused his entire presentation on one item; why he is now short St. Joe Company, ticker (NYSE:JOE). The presentation consisted of 139 slideshows about why he is short the company.  


  • Clash of the Guru Titans – Einhorn vs Berkowitz Over St. Joe (JOE)

    This one is just too good to be true.

    Breaking headlines today about David Einhorn at the Value Investing Congress unveiling his newest short position St. Joe (NYSE:JOE). St. Joe of course is a large holding of Bruce Berkowitz of Fairholme Capital.  


  • Confidence Game: Book Review

    I recently finished reading Confidence Game: How a Hedge Fund Manager Called Wall Street's Bluff by Christine Richard. The topic of the book is Municipal Bond Insurance Assuance (MBIA). More specifically, the book discusses MBIA and the investor who predicted and made a killing as a result of its downfall, Bill Ackman.

    The story begins in 2002, when Bill Ackman published a research report on MBIA, titled “Is MBIA Triple-A?” In the report, he detailed why his first hedge fund, Gotham Partners, had taken a short position in MBIA. From this, the reader can draw a comparison between this book and Fooling Some of the People All of the Time. The main difference between the two is the fact that Confidence Game was not written by Bill Ackman. This fact is negated by the fact that the author, Christine Richard, a very good writer for Bloomberg, was given a CD by Bill Ackman with everything that he ever written about the company. In addition, I found the amount of additional research she conducted for the book to be quite impressive, so much so that she probably wrote the book as well as Bill Ackman could have.  


  • Hedge Fund Greenlight Capital Buys Ensco International, NCR Corp., Apple Inc., Sells Automatic Data Processing, ATP Oil & Gas, Coinstar Inc.

    Renowned hedge fund manager David Einhorn just reported his second quarter portfolio. These are the details of buys and sells.

    The three funds at Greenlight Capital avoided the market decline of 2Q10. Each returned 2.2, 1.7 and 2.2% after fees. For the first half of the year, numbers have not changed much: 1.6, 2.2, and 0.8%, respectively. Einhorn attributed his success during the periods to “a conservative and defensive portfolio”. He has maintained a “small net long position” during the period and managed to avoid the market volatility completely.  


  • David Einhorn Publishes Quarterly Letter and Comments on Holdings: Moody’s Corporation, Pfizer, Apple Inc., Ensco plc, NCR Corporation

    David Einhorn of Greenlight published his letter to partners for 2Q10. He reported performance of his funds, shined light on what he think will happen next, and provided his thoughts on a few of his holdings.

    The three funds under his management avoided the market decline of 2Q10. Each returned 2.2, 1.7 and 2.2% after fees. For the first half of the year, numbers have not changed much: 1.6, 2.2, and 0.8%, respectively. Einhorn attributed his success during the periods to “a conservative and defensive portfolio”. He has maintained a “small net long position” during the period and managed to avoid the market volatility completely.  


  • Stocks that Hedge Fund Greenlight Capital Keeps Buying: Pfizer Inc., and Foster Wheeler AG; Keeps Selling Health Management Associates Inc.

    We just reported that David Einhorn of Greenlight Capital released his Q2 shareholder letter, and commented his positions in in Barrick Gold, Apple Inc., Ensco Plc, and NCR Corporation. We like to check the complete portfolio of Greenlight Capital to see what stocks the fund has been buying and selling.

    The Greenlight Capital funds returned 2.2%, 1.7%, and .2% net of fees and expenses in the second quarter, and gained 1.6%, 2.2% and 0.8% year-to-date, respectively. Einhorn attributed the gains partially to the long positions that declined less than the market and the shorts that declined more than the market.  


  • Greenlight Capital Releases Q2 Shareholder Letter; Comments on African Barrick Gold, Apple Inc., Ensco Plc, and NCR Corporation, shorting Moody’s

    David Einhorn of Greenlight Capital just released his second quarter shareholder letter (link provided again at the end of the article). His funds returned 2.2%, 1.7%, and .2% net of fees and expenses in the second quarter, and gained 1.6%, 2.2% and 0.8% year-to-date, respectively.

    His modest gains come from his conservative and defensive portfolio, with a small net long position throughout the year and have almost entirely avoided the volatility of the market. He also benefited from the gold positions, as gold appreciated more than 10% in the second quarter.  


  • David Einhorn: Ratings Agencies a 'Public Bad,' Should Be Tossed

    Ratings agencies, such as Moody's (NYSE:MCO) and Standard & Poor (MHP) are not serving a useful purpose and either should be changed dramatically or eliminated, hedge fund manager David Einhorn told CNBC.

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  • Presentations From The Ira Sohn Investment Conference

    Thanks Above Average Odds for providing the following two Presentations From The Ira Sohn Investment Conference:

    Steve Eisman of The Big Short discusses his latest short thesis:  


  • David Einhorn Op-Ed: Easy Money, Hard Truths

    Hedge fund manager David Einhorn has fast become one of the up and coming stars in the financial world after his calling out of Lehman Brothers pre death spiral. But he was certainly an up and comer before that, and has now become one of the more widely watched investment gurus.

    Einhorn has become a bit of a gold guru as he shares many of the same worries I do. [Oct 19, 2009: David Einhorn's Speech at Value Investing Congress]  


  • Ira sohn Investment Conference Notes

    Greetings. Yesterday (May 26, 2010) was the 2010 Ira Sohn Investment Conference. The conference is run by Doug Hirsch and Dan Nir and it remembers Ira Sohn, who died of cancer after a brief Wall Street career. The proceeds go to help pediatric cancer treatment centers including, The Tomorrows Children Fund at Hackensack Medical Center and NY Presbyterian Hospital/Weill Cornell Medical Center. You can get more information at http://www.irasohnconference.com/

    For those that are new, the idea is this: You buy a pretty expensive ticket and some of the smartest minds on Wall Street give you some of their best ideas for the coming year. The money gets donated to the charity. Each year I put out a synopsis of the event. I try to get as much of the content as I can; however, I am no reporter and I am certain that I miss a few things. So, this may not be complete and this is NOT a Cantor Fitzgerald research piece. I’m just a guy reporting what I heard.  


  • Einhorn: Short on Moody’s Corp. and S&P

    Hedge fund manager David Einhorn, who had questioned the health of Lehman Brothers four months before its collapse, said yesterday at the Ira Sohn Conference that he is still shorting Moody’s Corp, citing the short-term approach it uses in its assessments.

    Shares of the rating agency plunged 6.6 percent to $19.50 in after-hours trade, following Einhorn’s comments.  


  • Hedge Fund Greenlight Capital Buys Xerox Corp., NVR Inc, Flagstar Bancorp Inc., Sells Barrick Gold Corp., Huntsman Corp., Boston Scientific Corp.

    Hedge Fund manager David Einhorn has a enviable performance, when he started hedge fund Greenlight Capital with $1 million and through 2008, he produced an annualized net eturn of 22% for his investors. He expressed no-excitement in the availabilities in new opportunities in his latest shareholder letter. This is the Q1 portfolio update of Greenlight Capital.

    David Einhorn buys Xerox Corp., Nvr Inc, Flagstar Bancorp Inc., Symetra Financial Corp., Coinstar Inc., Iconix Brand Group Inc., sells Barrick Gold Corp., Ticketmaster Entertainment, Inc., Sinclair Broadcast Group Inc., Pattersonuti Energy Inc., Nike Inc., Mcdermott International Inc., Huntsman Corp., Endurance Specialty Holdings Ltd., Boston Scientific Corp., Memc Electronic Materials Inc. during the 3-months ended 03/31/2010, according to the most recent filings of his investment company, Greenlight Capital Inc. David Einhorn owns 36 stocks with a total value of $3.1 billion. These are the details of the buys and sells.  


  • Comment for David Einhorn Portfolio Holdings -- GuruFocus.com

    for david einhorn, I saw in Market folly article dated 4/26
    top 5 positions as
    1. CIT Group (CIT)  


  • View on David Einhorn

    loved his Fool Some of the People All of the Time; quite enlightening  


  • Long Positions Einhorn Closed Out: BJ Services, Boston Scientific, McDermott International, PattersonUTI Energy, Ticketmaster Entertainment, MEMC Electronic Materials, Mercer International debt

    David Einhorn released his Quarterly Letter for 1Q10 (see a copy at the end of the post). During the quarter in which S&P 500 returned 5.4%, his three funds barely broke even or incurred a small loss. The quarter was not friendly for a hedge fund that employs long/short strategy, particular for Einhorn, as the winners are few and losers are many.

    Long term, Einhorn’s performance is very enviable: from 1996 when he started a hedge fund with $1 million and through 2008, he produced an annualized net eturn of 22% for his investors.  


  • Hedge Funds Are Betting on a Wireless Revolution: Video

    Some of the top hedge fund managers are betting on a wireless revolution. Bloomberg's Sheila Dharmarajan reports.

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  • A Lesson from Boston Scientific

    Anyone who doesn't own Boston Scientific (NYSE:BSX) is once again breathing a sigh of relief. It seems like an ever shrinking list. Holders of BSX include Paulson & Co., Primecap, Dodge & Cox, Wellington, Greenlight Capital (Einhorn), and even Brandes. It's a Who's Who in Investment Royalty.

    We mere mortals in the field have taken notice. And the logic seems clear enough. First there is the attractive demographics. We're all falling apart and will need everyone from Medtronic (NYSE:MDT), Johnson & Johnson (NYSE:JNJ), and Abbott (NYSE:ABT) to Stryker (NYSE:SYK), Zimmer (ZMH), and St Jude (NYSE:STJ) to duct tape us back to relative health.  


  • Stock Ideas Shared By Einhorn and Loeb: CIT Group Inc., Health Net Inc., Energy Partners Ltd., BioFuel Energy Corp.

    (GuruFocus, March 8, 2010) Hedge fund managers Daniel Loeb of Third Point and David Einhorn of Greenlight Capital have similar traits:
    • Both are in their 40’s and both manages billions with good track records.
    • Both use long/short strategies in their money management.
    • Both have a relatively concentrated long portfolio
    • Both are outspoken about the companies in which they have a position in, especially if it is a short position.

    GuruFocus made available their 4Q09 Quarterly letter available to non-investors (Read Einhorn’s letter here and Loeb’s letter here) .  


  • David Einhorn Top Holdings: Boston Scientific Corp., Pfizer Inc., Carefusion Corp., Cardinal Health Inc., CIT Group Inc., URS Corp.

    (GuruFocus, February 26, 2010) Investment Guru David Einhorn of Greenlight Capital Ltd. is known for his colorful remarks on the companies he invested in. Recently, he declared war on the business model of Moody’s and disclosed his short position on the company.

    The three funds Einhorn manages were up 5.4 to 6.3% for the quarter and 30.6 to 36.9% for the year, net of fees and expenses. It is worth noticing that form the past 13 years since 1996, Greenlight Capital, L.P. has returned 1,397% or 22% annualized; for the past decade, during which the stock market had a negative return, the funds returned about 350% or over 16% per year.  


  • 10 Reasons Why a Stock Can Be Undervalued

    On Friday, July 17, 2009, I wrote that if you find a stock that you believe is undervalued, it is important to try to determine the reason for the undervaluation. As Buffett wrote about poker in his 1987 letter to shareholders, "If you've been in the game 30 minutes and you don't know who the patsy is, you're the patsy."

    Interestingly, some value investors, such as David Einhorn of Greenlight Capital, invert this process. Rather than first looking for undervalued stocks based on quantitative screens, for example, low multiples of price to earnings or price to book value, they first identify areas of the market where undervaluation is likely to be present and then search for good companies within that undervalued sector.  


  • Greenlight Capital Buys Boston Scientific Corp., Ralcorp Holdings Inc., Pfizer Inc., Becton Dickinson, Sells Smithfield Foods Inc., Teekay Corp.

    After losing 17.6% in 2008, David Einhorn’s Greenlight Capital gained 32% in 2009. He is one of the few who made a nice profit in the past two years, and a young guru who is certainly worth to be followed. Like Warren Buffett, he also runs an insurance company, the publicly traded Greenlight Re.

    In the fourth quarter of 2009. David Einhorn did more selling than buying. These are the details of the buys and sells.Greenlight Capital Inc. David Einhorn owns 41 stocks with a total value of $2.9 billion.  


  • David Einhorn is Wrong About Moody's

    As I have written previously (seekingalpha.com/article/128347-ratings-...), all of the ratings agencies have made serious mistakes. No one would debate that. My purpose in this article is not to defend shoddy assumptions that ratings agencies made about the housing market, but to discuss the underlying economics of the industry, which remain largely unchanged. In addition, I have immense respect for David Einhorn, and I say with no embarrassment that I am even a member of his Facebook fan group (Note to group creator, please don't kick me out for this article.) I simply think that, on balance, there are compelling reasons to believe that Moody's will continue to be a wonderful business franchise.

    At the most basic level, ratings agencies have some of the best economics of any business. They exchange opinions for money. While this may initially appear to be a rather facile observation, it leads to a variety of wonderful economic effects.  


  • David Einhorn Comments On Boston Scientific, Delta Lloyd NV, and Vodafone Group plc

    (GuruFocus, January 22, 2010) David Einhorn of Greenlight Capital Ltd. published his fourth quarter 2009 letter to his investors. A copy of the letter is attached to the end of this article. The three funds Einhorn manages were up 5.4 to 6.3% for the quarter and 30.6 to 36.9% for the year, net of fees and expenses. It is worth noticing that form the past 13 years since 1996, Greenlight Capital, L.P. has returned 1,397% or 22% annualized; for the past decade, during which the stock market had a negative return, the funds returned about 350% or over 16% per year.

    Looking forward, Einhorn sees a wide range of possibilities, from government stimulated prosperity to a decade of limited economic growth. He did not mention what the most probable scenario, but he shows he is up to the challenge as he is about fully invested, short or long. His portfolio is conservative and his long portfolio is invested in mainly stable, less cyclical businesses. He is shorting businesses that are fundamentally challenged in a difficult economic environment.  


  • High Growth David Einhorn Stocks: Teekay Corp., PattersonUTI Energy Inc., Health Management Associates Inc., BJ Services Company, NIKE Inc.

    David Einhorn is president of Greenlight Capital and manages a $2.6 billion portfolio. Einhorn considers himself as a “bottom up” or value-oriented investor. Greenlight achieved annual returns of 29%, from May 1996 to August 2009. David Einhorn believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. He is a noted activist investor, taking positions in companies, and then pushing management to implement changes. In his latest speech, he said, “Having my eyes open to the big picture doesn’t mean abandoning stock picking, but it does mean managing the long short exposure ratio more actively, worrying about what may be brewing in certain industries, and when appropriate, buying some just-in-case insurance for foreseeable macro risks even if they are hard to time.”

    Greenlight has interest in 53 companies. Some of the top holdings are in technology (16%), financials (18%), consumer services (14%), and health care (17%).  


  • Collection of David Einhorn's Speeches

    These are the collection of David Einhorn's recent speeches. Enjoy!

    Value Investing Congress David Einhorn, Greenlight Capital ... David Einhorn, Greenlight Capital, “Liquor before Beer… In the Clear”. October 19, 2009.  


  • David Einhorn Top Buys: Automatic Data Processing Inc., Cardinal Health Inc., Microsoft Corp., The Travelers Companies Inc., VALIDUS HOLDINGS LTD

    (GuruFocus, December 2, 2009) Following my early article on the top holdings (long holdings, should we say), these are the stocks that he purchased the most during the quarter that ended on September 30, 2009:

    No. 1: Automatic Data Processing Inc. (NASDAQ:ADP), Buy: 2.29% of the portfolio - Total: 1,512,500 Shares  


  • David Einhorn Top Stocks: Pfizer Inc, Carefusion Corp., Cardinal Health Inc., Teradata Corp., URS Corp.,Market Vectors – Gold Miners ETF

    (GuruFocus, December 2, 2009) David Einhorn, president of Greenlight Capital, employs a long-short value-oriented stratey. He started his fund in 1996 with a $1million. And since then, he had made more than 25% return per year for his partner. In the disastrous 2008, his Offshore fund finished '08 -16.5% and their Greenlight LP was down over 22%. And YTD through September 30, 2009 the two funds returned 22.9 and 30.0% respectively.

    GuruFocus records his long domestic equity portfolio that worth $2.6 billion distributed among the 53 stocks. He manages far more money than this amount.

    His latest quarterly letter to investors can be found here. He presented the cases for both the bulls and the bears, and he was not going to pick side and he has proven that he can make money both ways.
    The bull case is that with all the recessionary cost-cutting in corporate America, a recovery in sales will create record earnings in short order. The mega-bull case, which can’t be ruled out, cynically believes that the authorities will foster yet another asset bubble so that some folks feel wealthier and spend some of the paper wealth on holiday gifts and other items thereby improving the economy and justifying the rally. The bear case challenges the likelihood of sales recovering and questions the repeatability of some of the positive factors that were in place during the prior peak. Both sides seem to make sense and we find ourselves agreeing with proponents of each, depending on the day.

    The other aspect of this rally is that so far, it feels like a “professionals” rally. There is a lot of discussion about professional money managers deploying capital and covering shorts due to perceived business risk. Many mutual fund and hedge fund managers feel they have to beat the current market rally. Anecdotally, we know several portfolio managers who brought their gross and net exposures down to very low levels six months to a year ago, and have now brought them back up. Studying the figures, both short interest and mutual fund cash levels are down significantly. The rally has been met by steady sales by corporate issuers and corporate insiders and withdrawals from equity mutual funds. We wonder whether non-professional investors who suffered frightening losses after the tech bubble popped and, again, after the credit bubble popped, will be interested in playing “the-stock-market-bubble-game” again with money they are trying to save for retirement. Recent strong flows into bond funds, particularly municipal bond funds, suggest they won’t. There may be a lot less “cash on the sidelines” waiting to buy equities than some bulls contend.

    On the long side, here are his top ideas:  


  • View on David Einhorn

    The Only Five Guys i watch our Bill
    and Boone, Caril, William, Wilbur  


  • View on SHO

    negative  


  • Greenlight Capital Buys The Travelers Companies Inc., Automatic Data Processing Inc., Validus Holdings Ltd, Barrick Gold Corp., Novatel Wireless Inc.

    Once a bottom up value investor, Greenlight Capital’s David Einhorn is paying more attentions to macro economics – lessons learned in 2008. This is the Q3 portfolio update for Greenlight Capital.

    David Einhorn buys The Travelers Companies Inc., Automatic Data Processing Inc., Validus Holdings Ltd, Barrick Gold Corp., Novatel Wireless Inc. New, sells Max Capital Group Ltd., Helix Energy Solutions Group Inc., Ipc Holdings Ltd., Kkr Financial Holdings Llc, United States Natural Gas Fund, Lp, Dana Holding Corp, Energy Partners Ltd., Guaranty Fin Group, Harman International Industries Inc., Liz Claiborne Inc., Allegheny Energy Inc. during the 3-months ended 09/30/2009, according to the most recent filings of his investment company, Greenlight Capital Inc. David Einhorn owns 53 stocks with a total value of $2.6 billion. These are the details of the buys and sells.  


  • Latest Recommendation from Mutiple Gurus

    (GuruFocus, November 11, 2009) there has been an “Invest for Kids” conference in Chicago, featuring 11 well-known financiers. The conference aimed to raise $750,000 for five local child-welfare groups.

    Ann Saphir had a good write-up for the event in www.chicagobusiness.com. Here are some excerpt from the article concerning Investment Gurus whom we track:
      


  • View on WDC

    must buy share.this share will give you max return.this share will go upto $45 ++ within next 4 to 6 month.  


  • Investing with David Einhorn - Greenlight Capital Re Ltd

    You can invest with David Einhorn by owning stock in Greenlight Capital Re Ltd. Einhorn is the Chairman of GLRE and owns 17.4% of the shares outstanding. However, as a caveat, he owns super voting B shares which carry 10 votes for each share so this is really his baby.

    GLRE is a specialty property and casualty reinsurer based in the Cayman Islands which affords it tax-free status. David Einhorn has created GLRE as a vehicle to raise funds to invest primarily in equities or debt of other companies.  


  • David Einhorn Publishes Quarterly Letter and Comments on Cardinal Health Stock and CIT Group Debt

    (GuruFocus, October 26, 2009) David Einhorn of Greenlight Capital published his 3Q09 letter to partners. For the quarter, the three funds he managed returned 7.0%, 5.4% and 4.8%1 net of fees and expenses, respectively; and year to date they returned 30.0%, 26.2% and 22.9%.

    Einhorn outlined both the bull case and the bear case for the equity market, and stated “both sides seem to make sense and we find ourselves agreeing with proponents of each depending on the day”. He runs on a long/short strategy and is currently 99% long and 59% short.  


  • David Einhorn Speech includes comments on AIG, WFC, FNM, FRE, and C

    David Einhorn recently gave a rather opinionated speech at the Value Investing Congress. In his speech, Einhorn criticized politicians for being to short sighted in trying to resolve the financial crisis. He says that they are more worried about getting re-elected than worried about the wide effects of their current decisions many years from now. Specifically, he called Ben Bernanke and Tim Geithner the quintessential short-term decision makers. At the same time, he blasts the banking lobbyists for twisting the proper arms in gov’t to bail them out.

    The lesson of Lehman Brothers should not be that the government should have prevented its failure. The lesson of Lehman should be that Lehman should not have existed at a scale that allowed it to jeopardize the financial system. And the same logic applies to American International Group, Inc. (NYSE:AIG), Fannie Mae (FNM), Freddie Mac (FRE), Bear Stearns, Citigroup Inc. (NYSE:C) and a couple dozen others.  


  • Transcript for David Einhorn’s Speech at Value Investing Congress

    (October 19, 2009) One of the nice aspects of trying to solve investment puzzles is recognizing that even though I am not always going to be right, I don’t have to be. Decent portfolio management allows for some bad luck and some bad decisions. When something does go wrong, I like to think about the bad decisions and learn from them so that hopefully I don’t repeat the same mistakes.

    This leaves me plenty of room to make fresh mistakes going forward. I’d like to start today by reviewing a bad decision I made and share with you what I’ve learned from that error and how I am attempting to apply the lessons to improve our funds’ prospects.  


  • Comment for David Einhorn Stock Holdings, Investment Philosophies and News -- GuruFocus.com

    Just shorted one of Einhorn's positions, BAGL, at $13.78.  


  • David Einhorn Top Purchases: Everest Re Group Ltd. And Aspen Insurance Holdings Ltd.

    (GuruFocus, September 11, 2009) In the previous article, we reviewed the top holdings of Investment Guru David Einhorn. We stated that Einhorn turned bearish towards the end of the quarter; he did not think the stock rally was sustainable on economic concerns. Yet, he bought some stocks during the second quarter.

    His top purchases during the second quarter or 2009 are:
      


  • Bearish David Einhorn Top Holdings: Pfizer Inc, URS Corp., Teradata Corp, Wyeth, and Cardinal Health Inc.

    (GuruFocus, September 11, 2009) Investment Guru David Einhorn of Greenlight Capital is making news these days. In May he announced he was shorting rating agency Moody’s (MCO) and recently on September 8 he told Reuters that he was now also shorting The McGrawHill Companies Inc. (MHP), parent company of Standard & Poor’s. We will see how that plays out.

    There is no dispute of Einhorn’s reputation as a savvy investment manager. In the second quarter, according to his letter to shareholders, the three funds (Greenlight Capital, L.P., Greenlight Capital Qualified, L.P. and Greenlight Capital Offshore) returned 16.3, 14.7, and 11.9% net of fees and expenses, respectively. For the first half of the year,, the three funds returned 21.5%, 19.7% and 17.3%, respectively, outperforming the S&P500 index by a large margin.  


  • David Einhorn Buys S&P500 Iindex Put, Cardinal Health Inc., Transatlantic Holdings Inc., Sells Foster Wheeler AG, Spider Gold Shares, Focus Media Holding Ltd.

    Hedge Fund Greenlight capital's David Einhorn forsaw the financial crisis, he shorted the financials in 2008 and reduced the loss in his fund. He has made almost all of them back this year. He liked gold, now he sold them, and he bought a lot of index put, he must be very bearish. This is the Q2 portfolio of Greenlight Capital.

    David Einhorn buys Cardinal Health Inc., Transatlantic Holdings Inc., ATP Oil & Gas Corp., , Endurance Specialty Holdings Ltd., UNITED STATES NATURAL GAS FUND, LP, sells American Eagle Outfitters Inc., Hess Corp., JA SOLAR HOLDINGS, CO., LTD. - ADS, Jones Apparel Group Inc., Patriot Coal Corp., Sunstone Hotel Investors Inc., Supervalu Inc., Target Corp., Western Digital Corp., Corning Inc., Spider Gold Shares, FOSTER WHEELER AG., Brandywine Realty Trust, Cadence Design Systems Inc., Con-way Inc., Carpenter Technology Corp., CommScope Inc., Discover Financial Services, The Dow Chemical Company, Focus Media Holding Ltd., WilliamsSonoma Inc. during the 3-months ended 06/30/2009, according to the most recent filings of his investment company, Greenlight Capital Inc. David Einhorn owns 62 stocks with a total value of $2.8 billion. These are the details of the buys and sells.  


  • New GuruFocus Feature Announced: ETFs in Gurus’ Portfolios

    (GuruFocus, July 31, 2009) GuruFocus is pleased to announce the creation of a new page that shows ETFs held in our Gurus’ portfolios. On the page, we list the number of Gurus who own the ETF, number of the Gurus who bought and sold the ETF in the past quarter, and the combined weightings of the ETF in Gurus’ portfolio.

    Spider Gold Shares (GLD), Spider S&P500 ( SPY), Financial Select Sector SPDR (XLF), iShares Russell 1000 Value Index Fund (IWD) are among the top ETFs owned by Investment Gurus whom we track.  


  • David Einhorn's Greenlight Capital Shareholder Letter

    David Einhorn's Greenlight Capital Shareholder Letter: Interesting move was going from $GLD for owning physical gold and storing it because "storage was cheaper than GLD fees".... kind of gives a bit more credence to all the gold commercials we see on TV. Also bought Dow Chemical (DOW) at $10 and sold at $12 "way too soon". It is a 5 page letter and worth the tie to read (click all images to enlarge). The quote at the end is simply the best.....read it to see it.

      


  • 10 Reasons Why a Stock Can Be Undervalued

    If you find a stock that you believe is undervalued, it is important to try to determine the reason for the undervaluation. As Buffett wrote about poker in his 1987 letter to shareholders, "If you've been in the game 30 minutes and you don't know who the patsy is, you're the patsy."

    Interestingly, some value investors, such as David Einhorn of Greenlight Capital, invert this process. Rather than first looking for undervalued stocks based on quantitative screens, for example, low multiples of price to earnings or price to book value, they first identify areas of the market where undervaluation is likely to be present and then search for good companies within that undervalued sector.  


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