David Einhorn

David Einhorn

Last Update: 05-15-2015

Number of Stocks: 43
Number of New Stocks: 7

Total Value: $7,653 Mil
Q/Q Turnover: 20%

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

David Einhorn Watch

  • David Einhorn's New Stock Picks in 'Challenging Market'

    David Einhorn (Trades, Portfolio) had a lackluster 2013, with his firm returning 19.1%, compared to the S&P 500’s 32.4%, though his long positions slightly outperformed the benchmark index.


    The investor explained in his fourth quarter letter:

      


  • David Einhorn Comments on Airbus Group

    We closed out positions in Airbus Group (XPAR:AIR), formerly known as the European Aeronautic Defence& Space Company (France: EADS), and ThyssenKrupp (Germany: TKA)


    We bought the shares in EADS during a sell-off in response to the company’s unpopular proposal to buy BAE Systems in 2012. EADS ultimately abandoned the merger and insteadrepurchased a lot of stock while also reorganizing its corporate structure to reduce the influenceof several government shareholders. The shares rallied and we sold for a nice gain. We also bought TKA shares in 2012. Though management made significant progress in restructuring thecompany, a difficult external environment meant that asset sales and cash flow generation fellshort of their hopes and ours. We exited with a very small loss

      


  • David Einhorn Comments on Anadarko Petroleum

    APC (APC) is a global exploration and production company with a high-quality upstream portfolio comprised of U.S. onshore resources, deep-water Gulf of Mexico assets, and interests in other high-potential oil and gas basins around the world. The company also owns 91% of Western Gas Equity Partners (WGP), a publicly traded master limited partnership created in 2012 to hold APC's limited and general partner interests in Western Gas Partners (WES). In mid-December the company suffered a legal setback stemming from its 2006 acquisition of oil and gas assets from Kerr-McGee, whose titanium dioxide unit went bankrupt. With APC facing potential damages of $14 billion or $5 billion, investors dumped the shares, which we then acquired at an average cost of $78.55. Assuming a worst-case legal outcome, APC's core valuation net of its stake in WGP and its interest in an undeveloped, but valuable prospect in Mozambique, is less than 4x EBITDA. This is cheap compared to peers that lack APC's valuable upstream assets and exciting exploration prospects, but nonetheless trade at higher valuations. Our legal analysis suggests that the ultimate payment is likely to be the lesser of the two amounts and will be partly tax deductible. APC shares ended the quarter at $79.32.


    From David Einhorn (TradesPortfolio)'s fourth quarter 2013 commentary.

      


  • David Einhorn Comments on BP

    We established a position in BP (BP) at an average price of $47.39. The Deepwater Horizon oil spill was nearly four years ago. Since then, investors have focused on the ensuing legal cases regarding clean-up and restitution efforts, while overlooking BP’s improved return on capital inits core businesses. Allowing for more negative legal outcomes than BP has currently provisioned, we believe the company’s net asset value (NAV) is nearly $70 per share. It can therefore create substantial value by selling assets at or above NAV and using the income torepurchase stock at a significant discount. This is exactly what BP has been doing. Further, BP has restricted capital expenditures and increased dividends – all evidence of a more shareholder-friendly approach. As the legal issues subside, we expect the market to appreciate BP’s portfolio value and its improved capital allocation. In the meantime, we own an industry leader at 9x earnings with a 5% dividend yield. BP shares ended the quarter at $48.61.


    From David Einhorn (TradesPortfolio)'s fourth quarter 2013 commentary.

      


  • David Einhorn Comments on Micron Technologies

    MU (MU) is a manufacturer of semiconductor memory chips (DRAM and NAND flash). This isn't our first go-round with MU; it was a large short position from January 2001 to February 2005. Back then, DRAM was a lousy industry with too many competitors selling an undifferentiated product, often below cost. In the first quarter of 2001 when the shares were trading in the low $40s we wrote:


    MU is valued at 6.5x current run-rate revenues and, today, generates no profits. In its best year ever (fiscal 2000), MU recorded $2.52 per share of earnings, making the current price 17x the peak earnings of a cyclical, commodity manufacturer. In the previous two years, MU lost money.

      


  • David Einhorn Discloses Positions in Micron Tech, Anadarko Petroleum

    Greenlight Re investor David Einhorn (Trades, Portfolio) disclosed in his fourth quarter letter today new positions in Micron Technology (MU), BP plc (BP) and Anadarko Petroleum (APC).


    Einhorn described the position in Micron as “large” and the BP and Anadarko purchased as “medium-sized.” The long Micron position actually signals a reversal of a large prior short position Greenlight took from January 2001 to February 2005. That position was immensely profitable. During the period Einhorn held the short position, Micron’s share price plunged about 74%.

      


  • Greenlight Capital Q4 2013 Investor Letter



  • David Einhorn on the Federal Reserve



  • Stocks That Both David Tepper and David Einhorn Own

    Both David Tepper and David Einhorn have been nominated as GuruFocus’ Guru of the Year 2013, so I decided to see which stocks both gurus hold on to and what they had to say about them. The three top stocks held by both are General Motors (GM), Apple (AAPL) and Delphi Automotive PLC (DLPH).


    David Einhorn’s Top Five Holdings:

      


  • Apple: Supporting Carl Icahn

    A few months ago, Carl Icahn, who is one of Apple's (AAPL) largest shareholders, asked for a $150 billion share buyback. Icahn agreed with another successful activist investor, David Einhorn, who also believed that through a $150 billion buyback Apple's shares could soar by a third. That said, the former corporate rider now seems to be satisfied with a much more humble $50 billion buyback. What has happened?

    A Master Negotiator  





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