David Einhorn

David Einhorn

Last Update: 2014-05-16

Number of Stocks: 42
Number of New Stocks: 8

Total Value: $6,679 Mil
Q/Q Turnover: 15%

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

David Einhorn Watch

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

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

    The Company   


  • David Einhorn Comments on Chipotle Mexican Grill

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

    ...  


  • David Einhorn Comments on Cigna

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

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


  • David Einhorn Comments on General Motors

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

    ...  


  • David Einhorn Comments on Green Mountain Coffee Roasters

    From Greenlight Capital's third quarter letter.

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


  • David Einhorn's Greenlight Capital Q3 Investor Letter

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

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


  • Stocks Trading for Less Than David Einhorn Paid for Them

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

    Marvell Technology (MRVL)  


  • Is David Einhorn Short Lululemon?

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

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


  • David Einhorn Buys More BioFuel Energy Corp

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

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


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

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

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


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

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

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


  • David Einhorn's Top Picks from Health Care Sector

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

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


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

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

    The video is here:  


  • David Einhorn Ups Stake in Semiconductor Maker Marvell Technology

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

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


  • David Einhorn on Best Buy (BBY)

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


  • David Einhorn on Dell (DELL)

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


  • David Einhorn on CVH

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


  • David Einhorn on Cigna (CI)

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


  • David Einhorn on Marvell Technology Group (MRVL)

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


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

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

    These are some excerpts:  





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