David Einhorn

David Einhorn

Last Update: 08-15-2016

Number of Stocks: 46
Number of New Stocks: 11

Total Value: $5,451 Mil
Q/Q Turnover: 16%

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

David Einhorn Watch

  • David Einhorn Comments on Micron Technology

    MU (NASDAQ:MU) was our biggest winner in 2014 and our biggest loser in 2015. We have written a lotabout it and have exited the position. When all the dust settled, our average purchase was at$19.93 and our average sale was at $22.14, generating an IRR of 14%. The coulda-woulda-shoulda perspective that this was a disaster is belied by the overall decent return we made onthe investment.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Cairn Energy

    We exited our position in Cairn Energy (LSE:CNE). The downturn in oil prices was negative but tolerable; however, the ongoing retroactive extraterritorial taxation claims by India made profitable ownership of Cairn impossible. We initiated a small position in early 2012 at £2.72and gave up at £1.54.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Bank of New York Mellon

    We decided to sell our position in Bank of New York Mellon (NYSE:BK) with a small profit. We becamemoderately less comfortable with the market exposure in both the Investment Services andInvestment Management segments and felt that the market was giving the company too muchcredit for potential earnings leverage to multiple Fed rate hikes.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Applied Materials

    We entered Applied Materials (NASDAQ:AMAT) at $20.31 after the Tokyo Electron deal fell apart, with a viewthat margin improvement through cost cutting and aggressive buybacks could lead to earningsoutperformance. Despite reasonable execution and lots of share repurchases, concerns aboutoverall spending levels in the semiconductor capital equipment space mattered more. The riskof a pending cyclical downturn caused us to exit at $18.21 with a small loss.

    From David Einhorn (Trades, Portfolio)'s Green Light Capital fourth quarter 2015 shareholder letter.  


  • David Einhorn Comments on Mylan

    We initiated a position in Mylan (NASDAQ:MYL), a global generic pharmaceuticals company. MYLshares fell 29% in the first three quarters of 2015 and over 45% from their mid-year highsafter generics rival Teva abandoned a hostile takeover bid for the company. During the fall,the market became overly focused on a series of overhangs including potential earningsdilution from a proposed and ultimately failed buyout of Perrigo (a private-label OTC business); corporate governance concerns including an unusual takeover-defense mechanism;and widespread unease about the pharmaceutical sector amidst scrutiny of specialty pharmaceutical manufacturers like Valeant.


    We acknowledge eventual headwinds for the company’s branded EpiPen product, whichcould encounter competition from generics in late 2016. However, we see medium-termupside from a competitor recall, an announced share repurchase, and board review ofcorporate governance complaints. Ultimately, we expect MYL to earn close to $7 per share in2018, driven by a robust pipeline of respiratory, injectable and biologic drugs and by furthercapital deployment including share repurchases. We initiated our position at an average priceof $45.32, about 9x 2016 consensus EPS estimates. MYL shares ended the quarter at $54.07.

      


  • David Einhorn Comments on E ON SE

    We established a position in Macy’s (M), the operator of about 900 Macy’s, Bloomingdale’sand Bluemercury stores, at an average price of $45.69. Earlier in 2015, with the stock at $70,an activist argued that the store real estate could be separated to unleash a valuation in excessof $125 per share. Management determined a whole-company REIT wouldn’t provide therequired operational flexibility.


    Now, with the stock closing the year at $34.98, the math might make more sense. While it’sunlikely that management will reverse course on its own, it wouldn’t surprise us if a privateequity firm teamed up with a REIT to buy the company and unlock the value privately.

      


  • Einhorn Looks Back at Tough Year With 20% Losses



  • Gurus Are Buying These Stocks Trading Below Peter Lynch value

    According to GuruFocus' All-in-One Screener, the following are the stocks that are trading below the Peter Lynch value, and which more than five hedge fund gurus have in their portfolios.


    Goodyear Tire & Rubber Co. (GT) is trading at about $29 per share, and the Peter Lynch value gives the stock a fair price of $125.6, giving the stock a margin of safety of 77%.

      


  • Buffett Trims Chicago Bridge & Iron, Goldman Sachs, Walmart

    Warren Buffett (Trades, Portfolio) has been called "The Oracle of Omaha" for his impressive investing prowess. He follows a value investing strategy that is an adaptation of Benjamin Graham's approach. Following are the stocks in which he reduced his stakes during the third quarter.


    He reduced his stake in Chicago Bridge & Iron Co. (CBI) by 78.74% with an impact of -0.34% on the portfolio. The current stake is 0.06% of his total assets and 1.89% of the company’s outstanding shares.

      


  • Is There Value in Apple?

    Apple (NASDAQ:AAPL) is a company that is incredibly difficult to value because of its short product cycles. Earnings are high, true, but they could fall back quickly if and when next year’s product isn’t a hit. Costs are always harder to scale back as quickly.


    Gurus I greatly respect like David Einhorn (Trades, Portfolio) and Carl Icahn (Trades, Portfolio) have taken up their allocations to 20%-plus levels. Meanwhile, I have consistently underestimated how well Apple would do given its meteoric rise over the past decade.

      


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