David Einhorn

David Einhorn

Last Update: 06-03-2016

Number of Stocks: 43
Number of New Stocks: 5

Total Value: $5,897 Mil
Q/Q Turnover: 15%

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

David Einhorn Watch

  • Expedia (EXPE) - An Einhorn Pick I Like

    Intro: Expedia Inc. is an online travel company. The Company makes available, on a stand-alone and package basis, travel products and services provided by numerous airlines, lodging properties, car rental companies, destination service providers, cruise lines and other travel product and service companies. It also offers travel and non-travel advertisers access to a potential source of incremental traffic and transactions through its various media and advertising offerings on both the TripAdvisor Media Network and on its transaction-based websites. The company’s portfolio of brands include Expedia.com, Hotels.com, Hotwire.com, TripAdvisor Media Network, Expedia CruiseShipCenters, Egencia, eLong Inc. (eLong) and Venere Net SpA (Venere). In February 2011, TripAdvisor, an operating company of Expedia Inc., expanded its mobile travel offering with the acquisition of Palo Alto, California-based EveryTrail. In November 2011, Renren Inc. sold eLong Inc. to Expedia Inc.

    Renowned hedge fund manager David Einhorn reported his first quarter portfolio. In the first quarter, he sold a lot more stocks than he bought. He got into Howard Marks’ company Oaktree Capital (OAK), which came to the market a few weeks ago through IPO. Einhorn is heavy in the technology sector, which is almost half of his holdings. He bought into more tech companies such as Computer Science (CSC), Expedia Inc. (NASDAQ:EXPE), DST Systems (DST).  


  • More Hedge Funds Are Selling Apple Stock

    Today we have updated portfolios of almost all the Gurus we track. We will write a series of articles discussing the trends we observe. In this article we want to share with you about Apple (NASDAQ:AAPL), the most storied stock and the most valuable company on earth.

    Apple has been a wildly popular stock among the hedge fund gurus we track. Fewer mutual fund gurus own the stock as they are more toward traditional Ben Graham and Warren Buffett type of value investor. For the first quarter we have observed a lot selling with Apple among the hedge funds we track. This is quite a change of actions from the previous quarter. In the only four gurus added more to their positions in Apple; two initiated positions. Eleven hedge fund gurus reduced their Apple holdings; two sold out their positions completely. This is a strong change of action from the previous quarter, when 15 gurus added or bought into Apple, and only one reduced his position.  


  • David Einhorn's Stock Mentions at Ira Sohn

    CNBC reports on what stocks David Einhorn mentioned at the Ira Sohn Conference: Dick's Sporting Goods (NYSE:DKS), Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL).

      


  • David Einhorn Buys Computer Science, Expedia Inc, DST Systems, Sells Microsoft Corp, General Motors, Travelers

    Renowned hedge fund manager David Einhorn reported his first quarter portfolio. In the first quarter, he sold a lot more stocks than he bought. He got into Howard Marks’ company Oaktree Capital (OAK), which came to the market a few weeks ago through IPO. As of March 31, 2012, Greenlight Capital owns 37 stocks with a total value of $5.5 billion.

    With Apple (NASDAQ:AAPL) as his largest holding, Einhorn is heavy in the technology sector, which is almost half of his holdings. He bought into more tech companies such as Computer Science (NYSE:CSC), Expedia Inc. (NASDAQ:EXPE), DST Systems (DST).  


  • David Einhorn Compares Fed's Policies to Excessive Jelly Donut Consumption, Invokes the Simpsons

    David Einhorn, founder of hedge fund Greenlight Capital, excoriates the Fed's policies in this article for the Huffington Post:

    A Jelly Donut is a yummy mid-afternoon energy boost.  


  • David Einhorn Buys 1,679,750 Shares of Howard Marks’ Oaktree Capital after IPO

    David Einhorn, founder and president of hedge fund Greenlight Capital, bought 1,679,750 shares of Oaktree Capital Group (NYSE:OAK) on April 20 when the price was about $39 per share, according to GuruFocus Real Time Picks.

    Oaktree Capital Group is the private equity firm of Einhorn’s fellow noted money manager and market prognosticator, Howard Marks, which focuses on alternative markets and had $75 billion in assets under management at the end of 2011. It just held its IPO on April 11, pricing 8.8 million shares at $43 each and raising about $380 million. It originally planned to sell 11.3 million shares at $43 to $46 each. The offering was 6% of shares outstanding, which valued the company at $6.5 billion. Since Oaktree’s IPO, the stock price has declined 6.45%.  


  • A Closer Look at the F-Score

    For some time now, GuruFocus has displayed the F-Score in the upper right section on the “Guru Trade” screen. The F-Score, a designation given by its founder, Joseph Piotroski, appears to be a tool that too often gets overlooked. Some of this is due to some misunderstanding as to how the numbers were intended to be used.

      


  • Best Buy's Disappointing Fourth Quarter Results Beginning of Inevitable Decline?

    Best Buy (NYSE:BBY) released disappointing fourth-quarter financial results on Thursday. One unsuccessful quarter is not typically telling of a company’s overall business, unless it reflects the beginning of an inevitable decline, which is threatening Best Buy.

    Total revenue in Best Buy’s fourth quarter declined 2.4% compared to the previous year, including a 2.2% drop in domestic revenue and 2.9% drop internationally. Its net loss swung to $4.89 per share, compared to net income of $1.62 per share the previous year. The company was afflicted by a 21% decline in entertainment revenue and various charges, including restructuring charges related to store closures in the UK.  


  • Peter Lynch: Part Two

    “Companies that have no debt can’t go bankrupt."

    In my earlier article, “Is an Idiot Running the Business”, I mentioned taking a closer look at the techniques used by one of the greatest investors of all time, Peter Lynch.  


  • Weekly CEO Buys Highlight: AHC, AHT, OMG, SPN, FSC

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:

    Ah Belo Corp (NYSE:AHC): Chairman, President & CEO Robert W Decherd Bought 87,000 Shares  


  • Why First Solar Is An Ideal Play For The Mid-Term

    Sometimes going against the grain is the most profitable course you can take. Buying in when everyone else is selling can be risky – after all, the could have a ways to go before it bottoms out – but it can also be extremely profitable.

    Take First Solar (NASDAQ:FSLR) for example. It fell almost 7 percent in after hours trading on Tuesday after reporting its fourth quarter performance. The company, which is the world’s largest maker of thin-film solar panels, was hit hard across the board as panel prices decreased by roughly 50 percent last year and the company was hit with charges that totaled nearly 20 percent of its market value.  


  • Stocks Cheaper Than When David Einhorn Bought

    David Einhorn is the president of the value-oriented investment adviser Greenlight Capital. Einhorn graduated from Cornell University, where he earned a BA in government from the College of Arts in 1991.

    Mr. Einhorn is recognized as a successful investor for short selling and making contrarian stock picks. He is a superstar in the hedge fund environment because of his timely call on Lehman Brother’s demise and his track record. Since 1996, Greenlight returned about 21% surpassing the market with double digits.  


  • David Einhorn’s Buys: More Tech and a Return to Yahoo (YHOO)

    David Einhorn’s new buys include even more tech stocks. Einhorn already owns boatloads of Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). Now he’s adding:

    · Dell (NASDAQ:DELL)  


  • Is It Time to Invest with David Einhorn and Greenlight Capital RE?

    David Einhorn and his hedge fund Greenlight Capital have the best track record of any money manager in recent history. Between 1996 and 2007, Greenlight Capital averaged returns of 25% per year. The
    financial crisis brought this average down, despite Einhorn’s large bet against Lehman Brothers. Through the end of 2010, he averaged 21% per year.  


  • Greenlight Capital 2011 Letter to Investors

    Not a great year by Einhorn's standards, being up roughly 2% across the funds.

    One point of pride though — Greenlight was short the worst-performing stock in the S&P 500. First Solar (NASDAQ:FSLR) declined from $130 to $33 in 2011. The fund also did well on credit default swaps on European debt.  


  • David Einhorn's Greenlight Capital Discloses $13 Million Investment in Eastman Kodak Debt

    Eastman Kodak (EK) reveals its debt-holders as it undergoes Chapter 11 bankruptcy.

    Full list of noteholders is here.  


  • David Einhorn and Greenlight Capital Get Insider Trading Fine

    Jan. 25 (Bloomberg) -- David Einhorn and Greenlight Capital Inc. were fined 7.2 million pounds ($11.2 million) by the U.K.’s financial regulator for trading on inside information in Punch Taverns Plc in 2009. Einhorn, Greenlight’s 43-year-old chairman, was told of Punch Taverns’s plan to sell equity by a broker representing the company, the Financial Services Authority said in an e-mailed statement today. He then sold more than 11 million Punch Tavern shares over the following four days, avoiding losses of about 5.8 million pounds for the fund, the regulator said.

    “The big name and the big number” are what the FSA wants, Louise Hodges, a financial-crime defense lawyer at Kingsley Napley LLP in London, said in a telephone interview today. “It looks like it’s more a case of he should have known, rather than he did know,” his actions were illegal.  


  • Is Dell Set to Rise Like Intel and Microsoft?

    Hedge fund manager David Einhorn recently surprised investors by disclosing a stake in Dell Computers (NASDAQ:DELL). The former tech darling has languished in the $12-17/share range for two years with little excitement among momentum oriented tech investors.

    In his most recent investor letter, Einhorn wrote:  


  • Diamond Hill Capital’s Biggest Fourth Quarter New Buys

    Most of Diamond Hill’s funds were up in the double digits for the fourth quarter, outperforming their benchmark Russell 1000 index. The firm has noticed stocks increasingly moving in correlation with macro-economic forces, which has caused them to take into account the macro view more often, but also creates buying opportunities. The shift has not changed their fundamental approaching to stock picking, however. They still consider the factors that would affect a company’s future cash flows and buy when their estimate of intrinsic value provides a comfortable margin of safety. If there are any major uncertainties in some aspect of the company’s future, they pass. In the last ten years, Diamond Hill delivered a 10-year cumulative return of 204.0%, compared to the S&P 500’s 10-year cumulative of 16.4%.

    In the fourth quarter, their four largest new buys are: Walt Disney (NYSE:DIS), Hanesbrands (NYSE:HBI), Selective Insurance Group Inc. (NASDAQ:SIGI) and Diamond Foods Inc. (NASDAQ:DMND).  


  • Buffett Ratio Guru Portfolio Analysis: The Portfolio of David Einhorn Analyzed

    The following is an analysis of the most current portfolio of David Einhorn. This analysis will use a system that I designed that is based on the ratio that Warren Buffet released to the public in 1986, which he coined “Owner Earnings.” For those new to this type of analysis, I would recommend reading an introduction to my system by clicking here.

    My goal is ultimately to analyze the portfolios of each Guru highlighted here on GuruFocus, and to subsequently re-analyze them every quarter when possible as changes are made. My purpose in writing these articles is to show the power of Buffett’s ratio in analyzing stocks, ETFs, Mutual Funds and individual portfolios. If one can fill their portfolios with companies that score high using my system and avoid those which fail, one should be able to increase the probability of becoming a successful investor in my opinion. Profile of Einhorn:  


  • How Donald Yacktman Beat David Einhorn, Whitney Tilson and John Paulson in 2011

    Donald Yacktman pulled up his return for the $9 billion Yacktman Focused Fund from -1.24% at the end of the third quarter, to 7.41% for 2011, compared to the S&P 500 which was up 2.11% after a volatile year. Yacktman founded Yacktman Asset Management in 1992 and has achieved an 11.39% 10-year annualized return, and a 25% 3-year annualized return. In 1991, he was named Morningstar’s Mutual Fund Manager of the Decade.

    People now recognize Yacktman’s mastery after he avoided two crises caused by bursting bubbles and made sizable returns in the years following them. But during the bubbles, his contrarian stances and lagging returns made many people give up on him, as it looked like he was missing the party. During the tech boom of the late 1990s, his board even tried to oust him because he switched to non-tech small-cap stocks and his returns trailed the market. Then, the following three years, from 2000-2002, he beat the market, which remained in negative territory.  


  • David Einhorn Reveals New Positions in DELL and Xerox, Still Holds Gold and Gold Miners

    David Einhorn, founder of Greenlight Capital, announced yesterday that his Greenlight Capital L.P. fund returned 9.7% for the fourth quarter of 2011, bringing his full-year returns to 2.9%. Since the firm’s inception in May 1996, it has returned 10% annualized, net of fees and expenses. In his fourth quarter letter, Einhorn mentions that he established one new position, Dell (NASDAQ:DELL), and re-established a position in Xerox (NYSE:XRX). He also noted that he is still holding large positions in gold and gold miners.

    Of their strategy in general, he said they want to own cheap stocks of good businesses largely in the U.S. “We are more net long equities than we have been in some time, as we believe that many stocks have reached a point where they are simply cheap enough to own even if some trouble awaits us. We are prepared for problems in Asia by continuing to speculate on a much weaker yen. We have hedged the currency on our European equities, and continue to believe that European sovereign bond prices will fall regardless of whether the crisis is resolved through sovereign default or money printing,” he said.  


  • David Einhorn's 2012 Roadmap

    David Einhorn just released his 2011 year-end letter. Einhorn only earned a paltry 2.9% for his partnership in 2011 which far outpaced hedge fund rivals like John Paulson and Whitney Tilson.

    Einhorn's big winners were short positions in First Solar (NASDAQ:FSLR) and Green Mountain (NASDAQ:GMCR). Unfortunately, Einhorn bet against the Japanese yen which rocketed higher in 2011.  


  • Undervalued Stocks in Einhorn's Portfolio

    David Einhorn is president and co-founder of Greenlight Capital, a long-short value-oriented hedge fund. Since its inception, Greenlight has generated greater than a 21 percent annualized net return for its partners.

    Which is David Einhorn's strategy? He believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. Einhorn has made his fame for his long-term performance and his successful short selling.  


  • Top Buys in the Last Quarter from David Einhorn

    David Einhorn is president and co-founder of Greenlight Capital, a long-short value-oriented hedge fund. Since its inception, Greenlight has generated greater than a 21 percent annualized net return for its partners.

    Which is David Einhorn strategy? He believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. Einhorn has made his fame for his long term performance and his successful short selling.  


  • Inside Look at David Einhorn's Big Short

    Reuters had a interview with David Einhorn on his most recent highly publicized short position in Green Mountain Coffee (NASDAQ:GMCR):

    (Reuters) - Hedge fund manager David Einhorn is taking an even harder line against Green Mountain Coffee Roasters, his big short trade, claiming a recent audit committee review of the accounting issues he flagged is nothing more than a "whitewash."  


  • Reuters Exclusive Interview with David Einhorn Discussing Green Mountain Coffee (GMCR.O)

    (Reuters) - Hedge fund manager David Einhorn is taking an even harder line against Green Mountain Coffee Roasters (GMCR.O), his big short trade, claiming a recent audit committee review of the accounting issues he flagged is nothing more than a "whitewash."In an exclusive interview with Reuters, Einhorn said he still doubts sales figures and spending plans at the company, which saw its stock soar to $110 in August on the rapid growth of its individual coffee servings or K-cups. When Einhorn revealed in October that he had been building a short position in shares of the company for weeks, the stock tanked and it effectively turned things around for his $8 billion Greenlight Capital fund this year.

    "I think everything we said in the presentation is right now as it was then -- and in many cases even more so," said the 43-year-old manager, who runs one of $2 trillion hedge fund industry's better-known long/short funds and also is an accomplished poker player.  


  • Exclusive: An Inside Look at David Einhorn's "Big Short"

    Hedge fund manager David Einhorn is taking an even harder line against Green Mountain Coffee Roasters (NASDAQ:GMCR), his big short trade, claiming a recent audit committee review of the accounting issues he flagged is nothing more than a "whitewash."

    In an exclusive interview with Reuters, Einhorn said he still doubts sales figures and spending plans at the company, which saw its stock soar to $110 in August on the rapid growth of its individual coffee servings or K-cups. When Einhorn revealed in October that he had been building a short position in shares of the company for weeks, the stock tanked and it effectively turned things around for his $8 billion Greenlight Capital fund this year.  


  • Microsoft: Value Exposed

    Microsoft seems to be a favorite stock of some of the biggest money managers according to GuruFocus. Seth Klarman, Donald Yacktman and David Einhorn have all been piling up on shares of Microsoft since the second quarter of 2011. What is their attraction?

    Price: Microsoft (NASDAQ:MSFT) is modestly priced at its current range of around $26-27 per share. This would put the P/E at approximately 10 with its fiscal year EPS $2.69. According to an in-house DCF calculation, MSFT has an intrinsic value of approximately $52.34 per share, which would give it over a 50% margin of safety to its current trading price. This calculation is based on a modest 10% growth in revenue, 12% increase in gross profit, and a 15% increase in net income looking out to 2015. This also takes into consideration our projected future cash flows discounted out from 2015, which would give MSFT equity a value of approximately $447,081,450,000 (if you take into consideration less debt and controlling interest and plus cash).  


  • David Einhorn Profiting From a Decline in European Sovereign Debt

    David Einhorn, the hedge-fund manager who compared the Greek bailout to a surrealist painting, recast a bet against sovereign debt in a way that reduces risks posed by government regulators and big banks.

    Greenlight Capital Re Ltd. (GLRE), a publicly traded insurer controlled by Einhorn, held credit default swaps on $667 million of sovereign debt as of June 30. During the third quarter, the company exited about half of those swaps, designed to pay off should a government default, and entered into short sales on non-U.S. sovereign bonds, according to a regulatory filing.  


  • Best Buy (BBY) Frustrates Value Investors

    Several gurus have been battered on ill-timed investments in Best Buy (NYSE:BBY).

    Best Buy has been a favored investment for gurus such as David Einhorn, Joel Greenblatt and Leon Cooperman. However, shares of BBY continue to sink, leaving many to wonder if BBY is a classic value trap.  


  • Banks – Lehman Brothers 2.0 and Earnings Hocus Pocus

    For me, one of the largest red flags in the market has been the continued poor health of financials. The reason, of course, is that they are struggling to shrink their balance sheets, “extend and pretend” on their loan books, and earn their way out of impending Japanization. I’m not sure where I got this little piece of wisdom (and if you can prove it wrong please let me know): "There has never been a bull market in history that hasn’t been led by financial stocks." A sobering thought.

    Banks are, despite all their crimes, still the veins and arteries that pump credit around the body of the economy which acts as a lifeblood to economic activity.  


  • Weekly CEO Buys Highlight: UTHR, SUSS, ONFC, FSC, FBP

    Last week's top five stocks that were bought by their CEOs were UTHR, SUSS, ONFC, FSC, and FBP. According to GuruFocus Insider Data, these are the largest CEO buys during the past week.

    United Therapeutics Corp. (NASDAQ:UTHR): CEO Martine A Rothblatt Bought 38,687 Shares

    CEO of United Therapeutics Corp. (NASDAQ:UTHR) Martine A Rothblatt bought 38,687 shares during the past week at an average price of $42.02. UTD THERAPEUTIC is a biotechnology company focused on combating cardiovascular, inflammatory, and infectious diseases with unique therapeutic products. United Therapeutics Corp. has a market cap of $2.45 billion; its shares were traded at around $42.02 with a P/E ratio of 13.9 and P/S ratio of 4.1.

    Total revenues for the quarter ended September 30, 2011 were $201.7 million, up from $168.6 million for the quarter ended September 30, 2010. Net income for the quarter ended September 30, 2011 was $84.4 million or $1.45 per basic share, compared to $39.7 million or $0.70 per basic share for the same quarter in 2010.  


  • What Technology Stocks Hedge Fund Gurus Are Buying: MSFT, GOOG, HPQ, AAPL

    In the third quarter, earnings per share in the $3 trillion technology sector grew 31% year over year, and revenue increased 17%. Year to date, the information technology stocks of the S&P 500 returned almost 4%, and 7.6% over the last year. Guru hedge funds’ favorite stocks from this sector are: Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOG), Hewlett-Packard (NYSE:HPQ) and Apple (NASDAQ:AAPL).

    Microsoft (NASDAQ:MSFT)  


  • Removed by request

    Removed by request  


  • Gurus' Stocks Raising Dividends: YORW, MKC, BDX, CATC, HRL

    This is the group of companies who raised their dividend during the week: York Water Company, McCormick & Co. Inc., Becton Dickinson & Co., Cambridge Bancorp, and Hormel Foods Corp.

    York Water Company (NASDAQ:YORW)  


  • Hedge Fund Greenlight Capital Buys MRVL, CBS, LM, GM, GDX, AAPL

    Renowned hedge fund manager David Einhorn just reported his third quarter portfolio. Einhorn has made his fame for his long term performance and his successful short selling. As of 09/30/2011, his firm Greenlight Capital owns 39 stocks with a total value of $4.7 billion. These are the details of the buys and sells.

    His portfolio is overweight in technology and healthcare, light in industrial and basic materials.  


  • Einhorn Explains Green Mountain Short

    Hedge fund manager David Einhorn of Greenlight Capital elaborated on his short position of Green Mountain Coffee (NASDAQ:GMCR) in his latest investor letter.

    Einhorn specifically singled out the cozy relationship between GMCR and M. Block & Sons.  


  • Hedge Fund Manager David Einhorn Bought CBS, GM, MRVL

    Renowned hedge fund manager David Einhorn released his third quarter letter. He discussed his short position in Green Mountain Coffee (NASDAQ:GMCR) again. He also bought into CBS Corporation (NYSE:CBS), General Motors Company (NYSE:GM) and Marvell Technology Group Ltd. (NASDAQ:MRVL).

    According to the shareholder letter, Greenlight Capital, L.P., Greenlight Capital Qualified, L.P. and Greenlight Capital Offshore (collectively, the "Partnerships") returned (1.2)%, (0.6)% and (0.8)%1 net of fees and expenses, respectively, in the third quarter of 2011, bringing the respective year to date net returns to (6.2)%, (5.6)% and (6.1)%.  


  • Lehman Brothers 2.0 - More Bank Earnings Hocus Pocus?

    For me, one of the largest red flags in the market has been the continued poor health of financials. The reason, of course, is that they are struggling to shrink their balance sheets, “extend and pretend” on their loan books, and earn their way out of impending Japanization. I’m not sure where I got this little piece of wisdom from (and if you can prove it wrong please let me know): There has never been a bull market in history that hasn’t been lead by financial stocks. A sobering thought.

    Banks are, despite all their crimes, still the veins and arteries that pump credit around the body of the economy which acts as a lifeblood to economic activity.  


  • Apple, Potential Growth at Attractive Valuation

    Apple (NASDAQ:AAPL), the American multinational corporation designing and marketing computer software, consumer electronics and personal computers has recently suffered from a shortfall although it has exceeded its earnings expectations.

    The shortfall, including a 7% drop in shares from all time highs seems to be driven by hesitancy and a delay in the launch of new products, especially its iPhone 4S. That was the main factor that caused a small miss from analyst expectations.  


  • Stocks to Buy on Dips: BDX

    If you have been priming your portfolio for a significant buying opportunity, this series of articles are targeted at you. In the series, I am going to look at companies with the following characteristics:
    • Companies built to last. This means wide moat, pricing power, and durable competitive advantage. We will not deal with a lot of technical hocus-pocus and will not consider most technology stocks because of the ever-changing playing field.
    • Companies with strong FCF and good history of FCF growth in the last decade, preferably with market cap which is less that 12*FCF. Why 12*FCF? Assuming a 1% growth in FCF forever, with a 10.2% discount rate, gives us the magic number 12*FCF as the terminal value of the stock. What this means is that the market is pricing the company for a less than half of the U.S. economic growth rate (which is around 2%, if seen over a period of larger than 30 years) and a 10% discount rate.
    • Companies with good ROE with little or no debt, or companies with good ROIC. We will try to look at companies which have manageable levels of debt. We will err on the side of safety.
    • Companies with good management practices and good history of shareholder returns. This will look at the share counts, buybacks, dividend along with the management compensation, options and stock awards. Good insider holding/guru holding will be a plus.
    • Companies with very good balance sheet. We don’t want the company to face any major headwinds because of credit crunch in the next year. In particular we would like the company to be well financed with a good current ratio.
    Today, I am going to pitch medical device maker Becton-Dickinson (NYSE:BDX).  


  • David Einhorn Is Betting on Gold-Mining Companies

    Hedge fund manager David Einhorn is betting that gold-mining companies will outperform bullion, reversing the trend from the past six months.

    “A substantial disconnect has developed between the price of gold and the mining companies,” Einhorn said today in a conference call discussing results at Greenlight Capital Re Ltd. (GLRE), the reinsurer where he is chairman.  


  • David Einhorn's Best Stocks: BAGL, WAG

    David Einhorn is Greenlight Capital president. Greenlight Capital is a well known hedge fund founded in 1996. Since then, it has had 27% average in revenues. David Einhorn is always related to short selling, expressly, borrowing stock for a short period of time, selling it and then repurchase such stock at a lower price. In fact, that is his philosophy. He focuses on preserving capital and his goal is to buy stock that will remain strong.

    He always makes research before investing, but what´s curious is that he thinks that “you never really know what will happen”. Despite the uncertainty, the journey is well worth the effort.  


  • Einhorn Probably Regrets Selling MI Developments

    Hedge fund manager David Einhorn probably regrets bailing on his investment in Canadian real estate company MI Developments (MIM.TO).

    MI Developments owns and develops industrial real estate properties in North America and is controlled through a block of super-voting shares by Frank Stronach, its 76-year-old chairman, who is the founder of the auto parts giant Magna International.  


  • The Case for Shorting Green Mountain Coffee – Put in Perspective

    David Einhorn announced last week that he is shorting the stock of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR). He presented a detailed presentation on why he is shorting the stock. The stock declined more than 20% this week even as market went higher.

    Einhorn certainly deserves to be followed with his shorts. His most recent publicized short was St. Joe (NYSE:JOE), the controversial position he held against Bruce Berkowitz. With Bruce Berkowitz in dismal these days, St. Joe stock is moving favorably toward Einhorn.  


  • David Einhron GCMR

    David Einhorn Value Investing Congress Presentation 2011 Greenmountain[url=http://www.valuewalk.com/value-investing-congress-2/david-einhorn-qa/]  


  • Two of David Einhorn’s Largest Positions Now Involve Gold

    Value investing and gold. Do they go together?

    Over the past decade successful investing and gold certainly do. In 10 years gold has increased roughly four times while the stock market has gone virtually nowhere.  


  • Can Best Buy Fend Off Online Compeition?

    Best Buy (NYSE:BBY) is quickly being rendered obsolete by online retailers like Amazon.com (NASDAQ:AMZN). At least that’s what the headlines would have you believe. Best Buy’s recent quarterly results (same store sales declined 2.8%) and lowered guidance seem to lend credence to the “Best Buy is on its way out” line of thinking.

    This negative sentiment has pushed down the share price of BBY and the stock now appears on GuruFocus’ Low P/S Screener. Some gurus also see value in Best Buy. David Einhorn has 4.62% of his fund in BBY and Bill Nygren has 1.94% of his in BBY. Other investors with smaller positions include John Hussman, David Dreman, Joel Greenblatt, Mark Hillman, and Leon Cooperman.  


  • Berkowitz Sold Portion of St. Joe Due to Redemptions

    Bruce Berkowitz reduced 0.57% of his holdings in St. Joe Co. (NYSE:JOE) at the average price of $17.01 on 09/19/2011, as reported in his latest 13D filings. He still owns 26,483,091 shares. The stock price has changed by -2%.

    Berkowitz’s trimming of St. Joe shares does not signal a sudden bearishness on the stock. Rather, he is being forced to sell due to redemptions at Fairholme Capital Management. From July 25 to September 14, 2011, Berkowitz sold shares of St. Joe out of eight accounts after their management agreements were terminated.  


  • Thursday Value Overview: Costco, BKNY Mellon, and Sprint

    Thursday’s edition praises Costco’s (NASDAQ:COST) Jim Sinegal, looks at David Einhorn’s dealings with the Mets and his Sprint (NYSE:S) investment, reviews market valuations, and follows up on the BKNY Mellon (NYSE:BK) saga. Costco CEO Jim Sinegal will step down from his perch on January 1, 2012. Sinegal is truly a unique leader. I heard him described today as the Steve Jobs of the retail space. He turns 76 on January 1, so he feels like it’s time to step aside. Even so, he’s kept his sense of humor about it.

    [quote]"It'll be an upgrade," Sinegal joked about being replaced as CEO on Jan. 1 by President and Chief Operating Officer Craig Jelinek. "He is well-liked and smart and energetic and all the things that I used to be."  


  • The APPLE of Thy Eye?

    Apple certainly has a nice run from the consolidation low of $100 in late 2009, which more than quadrupled its high in July 2011.

      


  • David Einhorn Increases Position in CareFusion Corp. by 33%

    David Einhorn increased his position in CareFusion Corp. (NYSE:CFN) by 33% at the average price of $24.76 on 08/15/2011, as reported in the latest 13G filings by David Einhorn. He owns 12,668,724 shares. CareFusion is a global corporation serving the health care industry with products and services that help hospitals measurably improve the safety and quality of care. CareFusion Corp. has a market cap of $5.72 billion; its shares were traded at around $24.76 with a P/E ratio of 15.23 and P/S ratio of 1.62.

    Andreas Halvorsen bought 1,934,612 shares in the quarter that ended on 03/31/2011, which is 0.47% of the $11.95 billion portfolio of Viking Global Investors LP. John Keeley owns 188,290 shares as of 06/30/2011, an increase of 23.69% from the previous quarter. This position accounts for 0.0835% of the $6.13 billion portfolio of Keeley Fund Management. Edward Owens owns 4,284,654 shares as of 06/30/2011, an increase of 20.07% from the previous quarter. This position accounts for 0.5852% of the $19.89 billion portfolio of Vanguard Health Care Fund. George Soros owns 9,200 shares as of 06/30/2011, a decrease of 67.03% of from the previous quarter. This position accounts for 0.0035% of the $7.11 billion portfolio of Soros Fund Management LLC.  


  • David Einhorn Adds to Tech Stocks: Microsoft, Seagate Technology and Apple

    David Einhorn is the president and founder of Greenlight Capital, a value-oriented hedge fund. Unlike other funds, Greenlight does not leverage its positions to increase returns, and the fund does not generate large trading volumes. Nevertheless, since the fund's inception in 1996, Greenlight has generated more than a 25% annualized net return. Einhorn is best known for short-selling positions, most famously Allied Capital and Lehman Brothers, and his aggressive shorts in financials helped Greenlight prosper in its early days. However, he holds mostly long positions, emphasizing intrinsic value to achieve consistent returns and safeguard capital against market conditions. According to his second quarter portfolio update, Einhorn added to his position in Microsoft (MSFT), Seagate Technology (STX), and Apple (AAPL).

    Microsoft (NASDAQ:MSFT)  


  • Hedge Fund Greenlight Capital Reports Q2 Portfolio

    Renowned hedge fund manager David Einhorn reported his second quarter portfolio. Einhorn made many trades during the second quarter. He added to his positions in out of favor techs such as Microsoft. He exits his position in Yahoo as discussed in his latest shareholder letter. As of 06/30/2011, Greenlight Capital owns 37 stocks with a total value of $4.7 billion. These are the details of the buys and sells.

    This is the portfolio chart of David Einhorn. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.  


  • Does poker help to improve one’s investing skills?

    Warning: This article may not be suitable for value investors, nevertheless no harm in keeping an open mind.

    I believe in addition to this absolute passion for investing, playing poker does in fact help to improve one’s investing skills. Successful investing is a complex blend between valuation skills and ability to read the market sentiment. Thus, to be successful in poker, the same set of skills in reading people’s behavior (sentiment) applies. See, Notable Hedge Fund Managers Started Investing When They Were in Their Teens http://www.gurufocus.com/news/139170/notable-hedge-fund-managers-started-investing-when-they-were-in-their-teens for more.  


  • Thursday Value Overview: BRK.B, KFT, DNDN, F, GM, MS, ESV, WMT, BK

    Today was as bad a day we’ve had in a long time. The Dow is now down 10.5% over the past 10 days. Once I turn CNBC off, all I see is deals. Today I’ve got the Kraft (KFT) break-up, a Berkshire Hathaway (NYSE:BRK.B) story about no analyst buy recommendations for the stock, no safety in Morgan Stanley (NYSE:MS), Ford (NYSE:F), GM (NYSE:GM), Walmart (NYSE:WMT), and of course not in Dendreon (DNDN). I’ve also got a link to some John Paulson results and, finally, Bank of New York Mellon’s (NYSE:BK) decision to charge customers to hold cash. In an otherwise bleak day, Kraft shares are up after announcing plans to break in two. After Warren Buffett’s criticism for the Cadbury purchase, Kraft was careful to get his approval for this plan. Kraft will break into a snacks company and a groceries company. It’s probably a good plan, though I haven’t followed the company too closely. They also got the approval from Nelson Peltz, who is an activist investor often promotes break-ups like this.

    Hat tip to Ravi at The Rational Walk for this entertaining Bloomberg piece about Berkshire Hathaway. We’ve spoke over the last few months about how cheap Berkshire shares are trading. They got even cheaper today. Bloomberg talks about how none of the sell-side analysts they track recommend Berkshire’s stock as a buy. Some of them make comments about succession, some talk about the insurance exposure. Some even shrug at the valuation of 1.14 times book. Even Munger and Buffett talking about the stock being undervalued doesn’t move the price.  


  • What Gurus Are Saying About the Debt Ceiling Crisis

    The U.S. Treasury has told congress that they must come to an agreement on raising the debt ceiling by August 2 in order to prevent government debt defaults, a downgrade of the nation's AAA rating, a declining dollar and increased interest rates. With the deadline less than a week away, both parties in congress are still in a deadlock. The situation, which could have major implications for the stock market and economy, has spurred many of the world’s leading money managers to voice their views on whether the debt ceiling should be raised. Some have written letters or given interviews criticizing government leaders, proposing solutions, and arguing for who or what they believe is to blame. Many of them disagree. Here’s a collection of what Gurus are saying:

    Bruce Berkowitz  


  • David Einhorn Initiates Position in Huntington Ingalls Industries

    David Einhorn is the president and founder of Greenlight Capital, a value-oriented hedge fund. Unlike other funds, Greenlight does not leverage its positions to increase returns, and the fund does not generate large trading volumes. Nevertheless, since the fund's inception in 1996, Greenlight has generated more than a 25% annualized net return. Einhorn is best known for short selling positions, most famously Allied Capital and Lehman Brothers, and his aggressive shorts in financials helped Greenlight prosper in its early days. However, he holds mostly long positions, emphasizing intrinsic value to achieve consistent returns and safeguard capital against market conditions. According to his latest 13G filings, Einhorn entered into a new holding in Huntington Ingalls Industries (HII) with 2,510,000 shares at an average price of $34.28.

    Huntington Ingalls Industries (HII)  


  • Friday Value Overview

    Ending the week we have David Einhorn’s quarterly letter, talking about Yahoo (NASDAQ:YHOO), Warren Buffett on Bloomberg alluding to Berkshire Hathaway’s (BRK.B, BRK.A) Mastercard (NYSE:MA) position, a note about the terrible jobs report, and the bubble in online couponing.

    One of my favorite gurus, David Einhorn, released his Q2 letter today. Not surprisingly, he dropped Yahoo (NASDAQ:YHOO), which he had bought into in the first quarter believing the sum of the parts were worth significantly more than the stock price. As we now know, you can't trust the sum when one or more of the parts are Chinese. Einhorn also made comments on the Greek crisis, detailing how the game is rigged among rating agencies, the government, and European banks. Credit default swaps were like gasoline thrown on fire for the 2008 crisis. He is intimating that swaps on Greek and other struggling European countries have the potential to create another crisis. I've long thought credit default swaps should simply be banned, at least in the U.S. What's the economic benefit to them other than a distortion to the markets? While we're on common sense policies that will never be implemented, I also think we should implement an 80% capital gains tax rate on securities held less than a day. Call it the really short term capital gains rate.  


  • David Einhorn Buys Seagate and Drops Yahoo in Q2

    David Einhorn manages Greenlight Capital, a hedge fund with over $6 billion in assets. From inception to August 2006, Einhorn achieved 29% annual returns. He looks at companies intrinsic values which he believes will safeguard them regardless of market conditions. In his recently reported second-quarter investor letter, he announced that he bought one company, Seagate Technology (NASDAQ:STX), and made a surprising exit out of Yahoo! (NASDAQ:YHOO).

    Seagate Technology (NASDAQ:STX)  


  • David Einhorn's Q2 Investor Letter

    David Einhorn of Greenlight Capital released his second quarter investor letter on Wednesday, which is full of musings and surprises. Einhorn opines about the Greek crisis, the US debt ceiling, credit ratings agencies and other pressing financial matters. Following is an overview of the Partnerships’ investing movements for the quarter, including details on their one new buy and their prompt exit from Yahoo (NASDAQ:YHOO).

    The full letter is here.  


  • Why Third Point Capital's Daniel Loeb Is Beating John Paulson and David Einhorn

    On Wednesday, Reuters reported that hedge funds overall have lost an average of 2% over the first half of the year, while the S&P gained around 6%. Below the average are unexpected names like John Paulson (flagship fund down 15%), David Einhorn (Greenlight Capital down 5%), and Bill Ackman (Pershing Square Capital down 2.27%).

    Yet at least one manager has outshone them – Daniel Loeb. He is the founder of the $7.1 billion hedge fund Third Point LLC, which has had an annualized return of 19% since inception in 1996. Year to date, his fund has gained 6.3%, after losing 2.9% in June. His portfolio has climbed because he took a slightly different tack this year than other top investors. For example, only 7.6% of his fund is invested in battered financials, down from about 14% in the fourth quarter. He completely sold out his shares of Citigroup (NYSE:C) in the first quarter of 2011.  


  • Who is Management Really Listening To?

    One of the most noticeable areas of difference between the first and fourth edition of Benjamin Graham’s “The Intelligent Investor” is that the chapter regarding management is much smaller in the final version. Graham writes in the final edition:

    Ever since 1934, we have argued in our writings for a more intelligent and energetic attitude by shareholders toward their management….Shareholders are justified in raising questions as to the competence of the management when the results (1) are unsatisfactory in themselves, (2) are poorer than those obtained by other companies that appear similarly situated, and (3) have resulted in an unsatisfactory market price of long duration.  


  • Fifth Street Finance CEO Buys 30,000 Shares

    CEO of Fifth Street Finance Corp. (NASDAQ:FSC) Leonard M. Tannenbaum bought 30,000 shares on 06/21/2011 at an average price of $11.58. The total transaction amount is $347,400. Fifth Street Finance Corp. is a specialty finance company that lends to and invests in small and mid-sized companies in connection with an investment by private equity sponsors. The company has a market cap of $758.3 million; its shares were traded at around $11.65 with a P/E ratio of 11.7 and P/S ratio of 10.8. The dividend yield of Fifth Street Finance Corp. stocks is 11.2%.

    Leonard Tannenbaum is the CEO of Fifth Street Finance, and has been since October 2007. He is also chairman of the board. Mr. Tannenbuam founded a number of private investment firms, including Fifth Street Finance. Before that, he worked as an equity analyst for Merill Lynch. He resigned from his position as president of Fifth Street Finance in early 2010 at a board of directors meeting.  


  • Tuesday Value Overview

    Today I’ll talk about RIM (RIMM)’s prospects with Microsoft (NASDAQ:MSFT) and Dell (NASDAQ:DELL), Best Buy’s (NYSE:BBY) recent announcements, the Sino-Forrest (SNOFF.PK) fiasco, and Barnes & Noble’s (NYSE:BKS) results. The day started out with a fake press release purported to be from the SEC, announcing charges against Muddy Waters and Carson Block. The hoax was quickly found out and debunked. The SEC should be issuing a press release thanking Block for all of the investigative work he's done. Agree or disagree: Has Muddy Waters research regulated the market more efficiently than the SEC?

    If you haven't already heard, John Paulson jumped ship from Sino-Forrest (SNOFF.PK) for a loss in the $800 million range. The stake had made up about 1.5% of his total holdings.  


  • 3 Retail Stocks Trading Near 10 Year P/S Lows: Walmart, BestBuy, and CVS

    Ken Fisher, founder of Fisher Investments and son of Phil Fisher, pioneered the idea of buying stocks at a low price to sales (P/S) ratio for outsized gains. His 1984 book, Super Stocks, detailed the idea and its application. In later years he’s said that since the approach is so well-known now, it’s not as effective as it used to be.

    I like to take Fisher’s approach and alter it slightly. Using GuruFocus’s P/S screen, I look for companies that are trading near the low of the company’s historical P/S ratio. The idea is there will be some normalization to more traditional ratios for the company. Keep in mind, though, that this is an idea generator. It should be the first step before looking deeper as to why the stock is so cheap on this metric. It could be that something has changed dramatically within the company and their sales aren’t translating into higher earnings and won’t return to the past level of profitability in the future. However, it could also mean that the stock has been unduly punished for a short-term problem.  


  • Book Review: Fooling Some of the People All of the Time

    For the most part, David Einhorn seems to enjoy his privacy; you don’t hear much about Greenlight Capital in the press, and rarely hear from him in interviews. However, there is one event that has consistently been the scene where Mr. Einhorn has opened up and piqued the interest of investors: the Ira Sohn Conference. At last month’s event, he talked about Microsoft and CEO Steve Ballmer, saying his “presence is the biggest overhang on Microsoft's stock”. In the weeks since, this already hot topic that has been fueled even further by Mr. Einhorn’s speech and even sparked rumors that Ballmer may step down after the launch of Windows 8.

    In 2008, Einhorn grabbed headlines yet again with his short thesis for Lehman Brothers. A few weeks later, the company posted a surprising $2.8 billion quarterly loss; less than six months later, Lehman no longer existed.  


  • Monday's Daily Value Overview

    Today's edition touches on the buyout of M&F Worldwide (MFW), the merger between Allied World (NYSE:AWH) and Transatlantic Re (TRH), a little bit of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), and the Pfizer (NYSE:PFE) and Teva (NYSE:TEVA) dust-up.

    I've got to start with what the Dallas Mavericks did to the Miami Heat though. It's basically what the bears have been doing to the bulls for the last six weeks. The legend of LeBron James grew even bigger, just not for what he'd like to be known for. His play over the last three games was a bit like the high school student who consistently gets Cs telling himself he could easily get an A if only he would have studied. LeBron can tell himself he didn't actually lose... because his noticeable lack of effort meant he didn't try.  


  • Einhorn Creates His Own Fort Knox

    Several prominent investors have invested in physical gold in recent years. Most prominent is David Einhorn of Greenlight Capital.

    Einhorn gained fame from shorting Lehman Brothers prior to the financial crisis. He obviously has a deep understanding of the financial system. So why is Einhorn creating his own private version of Fort Knox?  


  • Daily Value Overview: June 7, 2011

    I don’t worry too much about the daily gyrations of the stock market: The ups, the downs, and everything in between. Mr. Market is manic-depressive, probably now more than ever. I do, however, find a great deal of useful news flowing throughout the day. Most of the news is noise, but the internet also provides a unique way to filter, to follow, and to focus. With that in mind I thought it would be useful to write a daily recap of market and stock news that I’m following and that I think is relevant to value investors. I can’t promise I’ll get something up at the end of every day, but I’m going to try. I also can’t promise that all of it will all be of interest to you but, again, I’m going to try. Here’s the kickoff. I hope you enjoy.

    Jamie Dimon (NYSE:JPM) smacked down Ben Bernanke after Bernanke admitted the economy was slowing, telling him that higher capital requirements and regulations are causing banks to limit their ability to carry out their primary function: Lending. Dimon fears that in the future a book may be written about how the recovery was weak because of regulatory overreach. See the video on CNBC here.  


  • The Dividend Stocks of David Einhorn: PFE, ESV, TRV, MSFT, CAH

    David Einhorn is the president of Greenlight Capital, which he founded in 1996 with less than $1 million. The fund has generated an annualized net return of greater than 22% since its inception and now manages assets totaling nearly $8 billion

    Einhorn is known by most as a notorious short-seller (he literally “wrote the book” about the grueling process when he penned "Fooling Some of the People All of the Time") thanks to the high profile positions he’s taken against companies like Allied Capital, Lehman Brothers and The St. Joe Company. But his fund is, by its own definition, a “long-short value-oriented hedge fund.”  


  • Is David Einhorn Looking to Oust Steve Ballmer at Microsoft?

    Has David Einhorn taken a page out of Bill Ackman's style of shareholder activism?

    Einhorn gave a presentation at the Ira Sohn conference where he recommended that Microsoft replace Steve Ballmer with another executive.  


  • The Winning Stock Idea from the Ira Sohn Conference

    This year the first Ira Sohn Investment Contest took place at the Ira Sohn Convention. Here are some details:

    · Participants submitted their best idea (long or short).  


  • Ira Sohn Conference: David Einhorn on Microsoft and Delta Lloyd

    David Einhorn is president of Greenlight Capital Inc., which he co-founded in January 1996. Greenlight Capital is a value-oriented investment advisor whose goal is to achieve high absolute rates of return while minimizing the risk of capital loss. Greenlight’s investment philosophy is to combine the analytical discipline of determining fair value with a practical understanding of markets. David is Chairman of the Board of Greenlight Capital Re Ltd. (GLRE) and a Director of BioFuel Energy Corp. (BIOF). He is the author of "Fooling Some of the People All of the Time," published in May 2008. David graduated with a B.A. summa cum laude from Cornell University.

    (Einhorn spoke very quickly about Delta. It was hard to get down all the notes. If I can get a copy of the slide show I will provide more information.)  


  • 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]  


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