David Einhorn

David Einhorn

Last Update: 07-23-2015

Number of Stocks: 44
Number of New Stocks: 8

Total Value: $7,787 Mil
Q/Q Turnover: 18%

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

David Einhorn Watch

  • David Einhorn Boosts Investment in Consol Energy

    David Einhorn (Trades, Portfolio) boosted his stake in Consol Energy Inc. (NYSE:CNX) by 43.85% on Monday, according to Real Time Picks.


    Einhorn’s position after the buy totaled 29,609,565 shares, or 12.9% of the company, from 20,583,070 shares held at the end of the first quarter. He initiated the holding in the third quarter of 2014 and added shares in the following two quarters.

      


  • A Look at June's Hedge Funds Returns

    The $3 trillion hedge-fund industry tumbled probably due to two important effects. On the one hand, Greece’s debt situation and on the other hand the recent performance of the Chinese stocks. In simple words, June was a bad month for stocks and for hedge funds, too.


    The Hedge Fund Research HFRI Weighted Composite Index dropped 1.3% and that percentage is its worst monthly loss since June 2013. In June, the HFRI Macro Index fell 2.4% and ended with the year to date gains of that index. In line with this, the SPDR S&P 500 ETF Trust (SPY) returned a negative 2.5% in June, but the total returns for the index for the year through Jul 14 was 2.3%.

      


  • Ohio-based Bank´s Results Were in the Median of Regional Banking Peers

    In this article, let's take a look at Fifth Third Bancorp (NASDAQ:FITB), a $17.08 billion market cap company, which is a diversified financial services company, based in Cincinnati, which operates 1,340 branches in 12 states, with a focus on Ohio, Michigan and Illinois.


    A top bank

      


  • Greenlight Capital's (David Einhorn) Q2 Investor Letter

    The Greenlight Capital funds (the “Partnerships”) returned (1.5)%,1 net of fees and expenses, in the second quarter of 2015, bringing the year-to-date net return to (3.3)%. During the second quarter, the S&P 500 index returned 0.3%, bringing the index year-to-date return to 1.2%.


    On April 15 after the close, Netflix (NFLX) announced its results for the first quarter and conducted a conference call. NFLX shares had already risen 39% in 2015 and were trading at more than 100x 2016 estimates with analysts expecting adjusted earnings for the quarter of $0.63. NFLX achieved just $0.36. Prior to the call, the June quarter consensus stood at $0.86; by the next morning consensus was $0.30. All told, analysts slashed estimates for the next three years. Further, we had just finished watching season three of NFLX’s leading original content show, House of Cards, which appeared to be scripted to compete with Ambien.

      


  • David Einhorn, Daniel Loeb Both Boost Green Brick Partners Holding

    David Einhorn (Trades, Portfolio) of Greenlight Management and Daniel Loeb (Trades, Portfolio) of Third Point both announced Monday that they increased their respective positions in Einhorn’s company Greenbrick Partners Inc. (NASDAQ:GRBK).


    Einhorn grew his holding by 54.25% to 24,127,590 shares. He had started a small position in the company in the first quarter of 2010, but expanded it to almost half of the company in the fourth quarter of 2014, when he also became chairman.

      


  • Market Valuations and Expected Returns – June 26, 2015

    The market was up more than 30% in 2013, the best year since the go-go years of 1990s. 2014 was another strong year for the market. The S&P 500 index was up more than 13%. Since the market recovery in 2009, the stock market has been up for 6 consecutive years. Yet in January 2015, the stock market benchmark S&P 500 lost 3.10%. In February, the market regained its strength by increasing 5.49%. Throughout March, the market went down by 1.74%. In April and May, the market was up by 0.85% and 1.05% separately.


    Bernard Baruch once said, “A market without bears would be like a nation without a free press. There would be no one to criticize and restrain the false optimism that always leads to disaster.”

      


  • David Einhorn’s Three Favorite High Yield Dividend Stocks

    David Einhorn (Trades, Portfolio) is one of the most successful long/short hedge fund managers. He has averaged returns of nearly 20% a year since starting his hedge fund Greenlight Capital in 1996.


    David Einhorn (Trades, Portfolio) owns several dividend stocks with yields over 3%. This article examines the 3 dividend stocks that make up the largest percentage of David Einhorn (Trades, Portfolio)’s portfolio with dividend yields over 3%.

      


  • Why GM Is A Buy

    It has been a few years since General Motors Company (NYSE:GM) resurected from the ashes of its former incarnations bankruptcy. It is still the leading automaker in the States and slowly U.S. taxpayers are forgiving the company its previous mistakes. In October 2010 the automaker integrated AmeriCredit to continue to offer credit to customers. Currently, Fiat Chrysler Automobiles CEO Sergio Marchionne is pursuing GM to merge with the Italian automaker. Sergio Marchionne has a reputation as a briliant manager who is highly skilled at creating shareholder value. His arguments are laid out in a presentation called Confessions of a Capital Junkie. His main point is that automakers are achieving RoIC below their average cost of capital. Long term that is a huge problem, and he thinks the solution lies in a few mega companies. By his estimates a combination of Fiat with another major automaker would result in between $2.8 billion to $5 billion in benefits per year. Fiat and GM’s combined Ebitda is around $19 billion, so that is signficant. GM CEO Mary Barra, meanwhile has indicated to be uninterested.


      


  • Micron May Be the Biggest Guru Bargain Of All

    Micron Technology (NASDAQ:MU) was founded in Boise, Idaho and manufacturers and markets a basic commodity for the computer industry – DRAM, NAND Flash memory, CMOS image sensors, along with other semiconductor components. was founded in Boise, Idaho and incorporated in October 1978.


    From a consistency standpoint, Micron fails to deliver, but you don’t get paid based on the past. In the last five years, Micron has worked hard to improve margins and efficency. It has doubled revenue, increased both gross and operating margins and has built a great base of relationships to drive the company forward for years to come.

      


  • Stay Away From David Einhorn's Fourth-Largest Bet

    David Einhorn's Greenlight Capital disclosed an equity portfolio valued at some $7.65 billion as of the end of the first quarter of 2015. The equity portfolio is mainly invested in Technology (48%), Consumer Discretionary (21%) and Industrials (14%) stocks.


    In a previous article we analyzed the top three positions held as of the end of March 2015. So now, let´s take a look at his fourth-largest position, Consol Energy Inc. (NYSE:CNX).

      


  • Buy the Keysight Technologies Spinoff After the Dip

    Research has shown that investing in spin-offs is a proven and consistent way of beating the market. Since massively outperforming the S&P 500 following its separation last year, shares of Keysight Technologies (KEYS) have lagged the market and its former parent Agilent Technologies (A) considerably.


    Does the pullback represent a buying opportunity for new investors?

      


  • Ken Heebner's stocks trading with low P/E

    Ken Heebner (Trades, Portfolio) is the co-founder of Capital Growth Management, which is a privately owned investment manager. It was founded in 1990 and is based in Boston and the firm invests in the public equity markets of the United States. The firm provides its services to charitable organizations, pension and profit sharing plans, investment companies, and high net worth individuals.


    His portfolio is composed of 67 stocks and 33 of them are new stock bought during the last quarter. The total value of the portfolio is now $3,656 million and the following are the stocks that are trading with lowest P/E ratio and may be attractive for other investors.

      


  • A Close Look of Herbalife Clubs Worldwide: Part I

    This is a very long post. I have done a lot of work on Herbalife that should be made public – and I am travelling on several long-haul plane journeys which gave me time to splice it all together. [Now in New York via London and the Middle East.]


    There are Herbalife groups all around the world and they reflect the character of the community they are in.

      


  • David Einhorn's Largest Bets

    David Einhorn (Trades, Portfolio)´s Greenlight Capital disclosed an equity portfolio valued at some $7.65 billion as of the end of the first quarter of 2015. The equity portfolio is mainly invested in Technology (48%), Consumer Discretionary (21%) and Industrials (14%) stocks.


    In this article we will look into the top three picks held at the end of Q1. Among the 10 largest holdings from Greenlight Capital’s equity portfolio (which accounts for 62.95% of the total portfolio value), the three top are: Apple Inc. (NASDAQ:AAPL), Micron Technology, Inc. (NASDAQ:MU) and SunEdison, Inc. (NYSE:SUNE). 

      


  • The Most-Bought Stocks of Investment Gurus in Q1

    Most value investors pride themselves on not following the crowd and investing in stocks where they see worth but that others have declined. Sometimes their perspectives on an opportunity line up, however, and multiple investors buy shares of the same company.


    For bargain investors, values continued not to appear in abundance in the first quarter. The S&P 500 returned 0.95% for the period, and the stock market has been on its longest bull run in the past 70 years, increasing 95% over the past five years. As Steven Romick (Trades, Portfolio) of FPA Crescent Fund said:

      


  • A Look Into Morgan Stanley's Upgrade of General Motors

    Morgan Stanley analyst Adam Jonas recently upgraded General Motors (NYSE:GM), saying that the company may consider radical strategic changes going forward as share buy backs are not working. In his latest report he wrote:


      


  • Apple, SunEdison and Biogen: Hellman, Jordan Management's Top 3 Stocks Outperform the Rise in the S&P 500 Index

    Hedge fund Hellman, Jordan Management Company, Inc disclosed an equity portfolio valued at some $548.6 million as of the end of the first quarter of 2015. The equity portfolio is mainly invested in Technology (32%), Consumer Discretionary (24%) and Health Care (17%) stocks. The fund’s last 13F filing showed that the fund raised its exposure towards consumer discretionary and tech stocks but reduced its holdings in the health care and industrials sector.


    In this article we will look into the top three picks held at the end of Q1. Among 10 largest holdings from Hellman, Jordan’s equity portfolio (which amass 37.07% of the total portfolio value), the three top are: Apple Inc. (NASDAQ:AAPL), SunEdison, Inc. (NYSE:SUNE) and Biogen Inc. (NASDAQ:BIIB).

      


  • David Einhorn initiates a position in General Motors

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital – a value-oriented investment adviser. He believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. He is a noted activist investor, taking positions in companies and then pushing management to implement changes.


    Last quarter, Einhorn initiated a position in General Motors (NYSE:GM) buying 9,467,986 shares of the company. General Motors is under a turnaround, and its business is improving. It has now been profitable for 21 consecutive quarters. Last quarter, GM's business delivered strong core operating performance with almost all key operating metrics including global deliveries, net income and adjusted EBIT improving.

      


  • David Einhorn Keeps Buying AerCap

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital – a value-oriented investment adviser. He believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. He is a noted activist investor, taking positions in companies and then pushing management to implement changes.


    Last quarter, Einhorn increased his stake in Aercap (NYSE:AER) by buying 1,839,161 shares of the company. As of March 31, 2015, he was holding 5,581,800 shares of the company. The following chart shows his holding history in the company.

      


  • Insiders are buying General Motors Shares

    In the last couple of months, three different insiders have purchased General Motors’ (NYSE:GM) stock. While the company’s directors Patricia F Russo and Linda R Gooden purchased 1,500 and 1,000 shares, respectively in April 2015; another director James J Mulva purchased 28,343 shares in May 2015.


    It’s not only insiders who are getting bullish on GM of late. General Motors' stock is also seeing significant interest from fund managers off late. Last quarter, David Einhorn (Trades, Portfolio) and Leon Cooperman (Trades, Portfolio) initiated a position in the company while several other fund managers including George Soros (Trades, Portfolio), David Tepper (Trades, Portfolio), Ken Heebner (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) increased their holdings in the company.

      


  • David Einhorn's Top 5 New Stock Buys

    David Einhorn (Trades, Portfolio) of hedge fund Greenlight Capital announced his first quarter buys this week but also told shareholders in his first quarter letter that he drastically reduced his long exposure from 30% to 14%.


    The letter, obtained by Marketfolly, went on to say: "Bottom up: short candidates are easy to find ... the opportunity set on the long side is quite constrained. Top-down: Valuations are on the high side and earnings are in a precarious spot."

      


  • David Einhorn Adds to stake in Civeo Corp

    David Einhorn (Trades, Portfolio) is the founder of Greenlight Capital, a $7,653 million’s portfolio hedge fund composed of 43 stocks.


    After his first buy on 2014 Q2 and his increase by 73.19% on Q4 (same year), on May 05 2015 he slashed his stake of Civeo Corp (CVEO) by 70.80% getting back now to 3,111,878 shares held with an average price of $12.12/share. He is now holding CVEO with an average loss of 26% (9% of which was accumulated since that sale).

      


  • David Einhorn Doubles Stake in Chicago Bridge & Iron

    Chicago Bridge and Iron (NYSE:CBI) stock jumped 8% in Friday’s trading after Bloomberg reported that Anadarko Petroleum Corp (APC) is poised to select a construction team led by Chicago Bridge & Iron Co. as its main contractor for a potential $15 billion Mozambique liquefied natural gas project. Chicago Bridge & Iron’s current backlog is ~$30 bn and this win may help it significantly increase its backlog and revenue visibility in the near term. Further, Anadarko proceeding with this project will also reassure investors who are worried about the fate of energy mega-projects amid the oil market downturn.


    Chicago Bridge and Iron is trading at 9.68 time current year earnings and analysts are expecting its top and bottomline to decline slightly over the next year. A win of the size of Mozambique LNG project may help the company grow its revenue next year, instead of slight decline which analysts are modeling. So, there is a good chance of the next year numbers getting revised upwards when the deal is formally announced.

      


  • Halyard Health is a Long-Term Winner

    On October 31, 2014, Halyard Health (HYH) was spun off of Kimberly-Clark (KMB). Kimberly-Clark had planned on spinning the business into a separate entity a couple of years ago to better focus on its core consumer and professional brands.


    While HYH shares performed very well following the separation, shares are down over 15% from its highs.

      


  • Energy Guru Boone Pickens Addresses David Einhorn's Attack On Frackers

    This week David Einhorn (Trades, Portfolio) called out North American fracking companies.

    What does T. Boone Pickens a man who saw his first frack job in 1952 think about Einhorn's comments?   


  • "Meet The Frackers" – David Einhorn's Ira Sohn Presentation



  • David Einhorn Calls Out Pioneer Resources

    David Einhorn (Trades, Portfolio) isn't positive about the fracking business.


    He especially doesn't seem to like Pioneer Resources, which is the largest acreage holder in the Permian Basin shale play.

      


  • Hedge Fund Legend Leon Cooperman Discusses David Einhorn's Trashing Of "Fracking" Companies

    David Einhorn (Trades, Portfolio) made big news today by calling out major fracking oil producer Pioneer Resources (ASX:PIO) at the Ira Sohn conference.


    Leon Cooperman (Trades, Portfolio) has about a 10% weighting towards energy and he sees both oil and natural gas prices rising this year.

      


  • Despite Einhorn´s Bullish Sentiment, General Motors Disappoints Sending Shares Down

    In this article, let's take a look at General Motors Co (NYSE:GM), a $59.84 billion market cap company, which builds, and sells cars, crossovers, trucks, and automobile parts worldwide.


    Mixed Q1 Results

      


  • Analyzing David Einhorn's Top Holdings

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital – a value-oriented investment adviser. He believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. He is a noted activist investor, taking positions in companies and then pushing management to implement changes.


    Time Warner (NYSE:TWX) is one of his top 10 holdings. As of Dec 31, 2014 his fund was holdings 3,795,700 shares of the company.Time Warner Inc. is a leading media and entertainment company. The company classifies its businesses into the following reportable segments:

      


  • Fifth Street Finance Announced a Dividend Cut, But I Will Follow Zeke Ashton and Push the “Buy Button”

    In this article, let's take a look at Fifth Street Finance Corporation (NASDAQ:FSC), a $1.09 billion market cap company, which is a growing asset manager that provides credit solutions to small and mid-sized businesses.


    Principal hedge fund's activity

      


  • David Einhorn Presentation At Grant's Interest Rate Spring Conference



  • Aetna: Solid Prospects in a Volatile Environment

    With the health care industry in all sorts of turmoil, we might well ask why any sane investor would buy in. After all, it’s filled with legislative uncertainties, regulatory and litigation certainties, not to mention technological change and more.


    Yet, investors looking for capital appreciation should give some attention to Aetna Inc. (NYSE:AET), the long-lived health insurance company. It has delivered strong, consistent earnings in the past and appears capable of continuing along that path for at the least the next few years. It carries with it a storied history and enough mass to survive in a turbulent environment.

      


  • Investors Should Not Worry, It´s Yahoo!

    In this article, let's take a look at Yahoo! Inc. (NASDAQ:YHOO), a $41.68 billion market cap company, which provides search and display advertising services on Yahoo properties and affiliate sites worldwide.


    Some Possible Answers

      


  • Analyzing David Einhorn's Low PE Stocks: AerCap Holdings NV

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital – a value-oriented investment adviser. He believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. He is a noted activist investor, taking positions in companies and then pushing management to implement changes.


    AerCap Holdings NV (NYSE:AER) is one of the undervalued (Low PE) stock he is holding. As of December 31, 2014, he was holding over 3.74 million shares in the company. The following chart shows his holding history in the company.

      


  • Helping People Get Along Better – A Lecture From David Einhorn

    March 12, 2015


    I’d like to thank Headmaster Johnson for inviting me to speak today. As an investor, I typically get asked to share ideas about how to make money so it’s exciting to be able to share my thinking about how to give it away.

      


  • Analyzing David Einhorn's Top Holdings: Aecom Technology

    David Einhorn (Trades, Portfolio) is President of Greenlight Capital - a value-oriented investment advisor. He believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. He is a noted activist investor, taking positions in companies, and then pushing management to implement changes.


    Aecom Technology (NYSE:ACM) is one of his top ten holdings. Last quarter, he used a decline in Aecom's stock price as an opportunity to ramp up his position in the company. As of December 31, 2014 he was holding over 6.65 million shares in the company. The following chart shows his holding history in the company.

      


  • A Closer Look at February´s Hedge Funds Returns

    The $3 trillion hedge-fund industry posted gains of about 2%. According to research firm eVestment, hedge funds gained 1.93% in February. Further, according to the Barclay Fund of Funds Index, the industry gained 2.25% in February, and is up 2.14% for the year.


    Almost all of Barclay’s 18 hedge fund indices had gains in February. Among them, we can highlight:

      


  • Should you follow these analysts and buy Chicago Bridge and Iron

    Recent correction in oil prices have taken a toll on Chicago Bridge & Iron Company's (NYSE:CBI) share prices and the stock has corrected ~50% from 2014 highs. However, according to many analysts, this correction provides a good opportunity to buy the stock. In his recent report, Jefferies analyst Luke Folta reiterated his buy opinion on the company. He considers the stock a bargain at current levels and has a price target of $75 on the stock. He believes divesture of assets and restructuring could generate more that $100 million in cash flow for the company in 2015 and 2016 which could be used towards stock buy backs.


    Another analyst, John B. Rogers of D.A. Davidson, is also bullish on the stock and has a $70 price target. He believes that with sustained earnings and cash flow, let alone growth, the stock can appreciate substaintially from the current level. He is optimistic on the company's backlog growth due to “LNG export facilities, new gas fired power plants, and other energy/downstream infrastructure that could be awarded in 2015.”

      


  • Can Time Warner Inc (TWX) Continue Its Momentum?

    Time Warner's (NYSE:TWX) stock is in an uptrend since mid-2012, and its stock price has more than doubled in the last two and a half years.


      


  • Market Valuations and Expected Returns – March 12, 2015

    The market was up more than 30% in 2013, the best year since the go-go years of 1990s. 2014 was another strong year for the market. The S&P 500 index was up more than 13%. Since the market recovery in 2009, the stock market has been up for 6 consecutive years. Yet in January 2015, the stock market benchmark S&P 500 lost 3.10%. In February, the market regained its strength by increasing 5.49%. Can market continue to grow in 2015?


    Bernard Baruch once said “A market without bears would be like a nation without a free press. There would be no one to criticize and restrain the false optimism that always leads to disaster.”

      


  • 5 Stocks Multiple Gurus Are Buying

    One of GuruFocus’ useful features is the Consensus Picks of Gurus page, which lists stocks that have been bought or sold by multiple gurus.


    On this page, users can filter stocks with the most active buys or sells over three, six, and 12 month time frames. This feature is just one of the ways you can search for investing ideas and see what stocks gurus are interested in.

      


  • David Einhorn's Most Weighted Low PE Stocks

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital (a value-oriented investment advisor). Through August 2006, Einhorn had achieved annual returns of 29% since starting Greenlight in May 1996.


    Einhorn believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. He is a noted activist investor, taking positions in companies, and then pushing management to implement changes.

      


  • Chicago Bridge & Iron is a good buy post recent results

    Chicago Bridge & Iron Company (NYSE:CBI) recently reported strong fourth quarter results. CB&I adjusted net income was $161.3 million, or $1.47 per diluted share, excluding acquisition and integration related costs. Revenue for the fourth quarter was $3.4 billion with new awards of $3.3 billion. Despite a ~15% increase in stock price post earning, the stock still appears to be a good buy. The company has an impressive track record of growth and is trading at 8.44 times its FY2015 EPS estimates. Here’s a look at the company in detail.


    Founded in 1889, Chicago Bridge & Iron Company N.V. provides a wide range of engineering, construction and procurement services to customers in the energy infrastructure market throughout the world. The company has seen good growth – both organic and inorganic – over the last few years. The following table shows CB&I's financial and operating data for the last three years. (Source:10-K filing)

      


  • Analyzing David Einhorn's New Buys: Yahoo! Inc. (YHOO)

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital (a value-oriented investment advisor). He is most famous for his short bet against Lehman Brothers during the 2008 crisis. Einhorn believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. He is a noted activist investor, taking positions in companies, and then pushing management to implement changes.


    Last quarter, he initiated a position in Yahoo! Inc. (NASDAQ:YHOO) by buying 2,025,000 of its shares. Yahoo's current (under) valuation continues to surprise many investors including the noted finance professor Ashwath Damodaran. The company's stake in Alibaba (NYSE:BABA) is worth ~$40 bn and Yahoo Japan is worth ~$7 bn. Yet Yahoo's market capitalization is just is just $42 billion, giving a negative value to its core business.

      


  • Analyzing David Einhorn's New Buy: Life Time Fitness (LTM)

    David Einhorn (Trades, Portfolio) is President of Greenlight Capital (a value-oriented investment advisor). He is most famous for his short bet against Lehman Brother during 2008 crisis. Einhorn believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. He is a noted activist investor, taking positions in companies, and then pushing management to implement changes.


    Last quarter, he initiated a position in Life Time Fitness, Inc. (NYSE:LTM) by buying 1,835,685 of its shares. The company has a good history of growth and is available at a reasonable valuation. Gurufocus has a business predictability rating of 3.5 star on the company. Here's a look at the company in detail.

      


  • Greenlight Capital: Fourth Quarter 13-F Filing


    David Einhorn (Trades, Portfolio)'s Greenlight Capital has filed its 13-F filing with the SEC and report a market value of it portfolio of $7.52 billion as of the end of the fourth quarter. During the fourth quarter the firm returned 5.6% (net of fees and expenses) and for the year returned 6.4%.

      


  • David Einhorn Buys Time Warner, Life Time Fitness in Q4

    David Einhorn (Trades, Portfolio) founded Greenlight Capital in 1996 with $900,000, more than half of which came from his parents, according to Einhorn’s Forbes profile. Today, the firm has about $10 billion in assets under management.


    Greenlight Capital is a value-oriented, research-driven firm. Einhorn is a noted activist investor with a strong short-selling record, particularly when he shorted Lehman Brothers into bankruptcy in 2008.

      


  • A Look at David Einhorn's investment in Chicago Bridge and Iron (CBI)

    Hedge fund titan David Einhorn (Trades, Portfolio) has recently initiated a long position Chicago Bridge and Iron (NYSE:CBI). His fund now holds 2,940,000 shares of the company. The company has an impressive track record of growth and its EPS has more than doubled over the last few years.


    Table 1: Chicago Bridge and Iron's key financials

      


  • Analyzing David Einhorn's New Buy: Time Warner (TWX)

    Last quarter, famed hedge fund manager David Einhorn (Trades, Portfolio) bought 3,795,700 shares of Time Warner Inc (NYSE:TWX). The company is trading at 18 times FY2015 consensus EPS and appears a value buy given its high earnings growth rate. Here's a look at the company in detail.


    Business basics

      


  • A Look at Which Oil Company is the Safest Buy Based on Dividend Data

    Oil has been a hot topic in the news ever since prices began to decline, which has lead investors to paying closer attention to energy stocks. As outlined in a previous article on the energy sector, the recent spike in insider buys in this sector did not go unnoticed. Although looking at trends in insider trades is one way to determine which stocks are potentially good buys, another way is by looking at the dividend data, a feature we offer to premium members. The tab can be found on each stock's page.


    Here's a look at the top three oil companies in the industry – BP PLC (NYSE:BP), Exxon Mobil Corporation (NYSE:XOM) and Chevron Corp (NYSE:CVX) – and which stock is a safer buy based on dividend data.

      


  • David Einhorn’s Best Stocks of 2014

    David Einhorn (Trades, Portfolio), founder of the $10 billion hedge fund Greenlight Capital, saw his gains for the year through November reach 11%, slightly below the S&P 500’s gain of 11.9% for the same period.


    The investor had an eventful year, giving a take-down presentation of a big short position in AthenaHealth in October, taking the reigns as half owner and chairman of new homebuilder Green Brick Partners, and joining the activist chorus with a stake in EMC Corp (NYSE:EMC) disclosed in November.

      


  • A Closer Look at Market Vectors Gold Miners ETF

    In this article, let´s take a look at Market Vectors Gold Miners ETF (GDX) which is a favorite ETF for David Einhorn (Trades, Portfolio). As of Dec. 31, 2013, hedge fund Greenlight Capital owned 8.8 million shares.


    Market Vectors Gold Miners ETF

      


  • Miners Are an Attractive Substitute for Gold Exposure

    In this article, let´s take a look at Market Vectors Gold Miners ETF (GDX) which is a favorite ETF for David Einhorn (Trades, Portfolio). As of Dec. 31, 2013, hedge fund Greenlight Capital owned 8.8 million shares.


    Market Vectors Gold Miners ETF

      


  • Top Is Near For Apple Shares

    Equity markets ended roughly flat on Tuesday as a surprise drop in U.S. consumer confidence numbers offset positive economic growth figures.



    U.S. Q3 GDP came in much higher than expectations at 3.9% – versus the 3.3% analyst expectation and the 3.5% figure from Q2.
      


  • Ron Baron Explains What To Look For In a Company That's Built To Last

    What should investors look for when trying to find great companies that they can own for decades? Ron Baron (Trades, Portfolio) thinks the place to start is management.


    Baron wants managers who are risk averse, but are also willing to make long term investments at the expense of current earnings.

      


  • Technology Guru Peter Thiel Discusses David Einhorn's Short of Amazon

    Over the long term, Peter Thiel would not bet against Jeff Bezos and Amazon.com. David Einhorn (Trades, Portfolio) disagrees as he is shorting the still profit-less Amazon.


    Thiel thinks it is a good long term strategy to invest for the future, and long term cash flows should be the focus, not current cash flows. 

      


  • David Einhorn 2014 Ira Sohn Conference Presentation



  • The Importance of Capital Intensity and Thoughts From Einhorn

    It seems as though there has been a debate ongoing within the value investing community pertaining to ROE, ROIC and net-nets. At one end of the spectrum we have the argument that value investors are throwing in the towel and buying anything with a high ROE while using 20+ years discounted cash flows to support their thesis. The central argument is, there is no margin of safety if one pays more than NCAV or liquidation value. At the other end of the spectrum we hear that the most profitable way to invest over the long-term is continually buying and selling assets trading below NCAV, P/B or low P/E. I do agree that assets available below NCAV, low P/B or low P/E can be profitable, but we must ask ourselves why is Mr. Market willing to offer us a business at a price that values the business higher dead than alive?



    According to Buffett “the risk in buying poor businesses is that much of the bargain element of the initial purchase discount may well be dissipated by the time a catalyst comes along to unlock what appeared to be the initial excess value.”
      


  • David Einhorn Becomes Half Owner, Chairman of Homebuilder

    David Einhorn (Trades, Portfolio) on Monday made a major purchase of his stock BioFuel Energy Corp, upping the position to 15,650,727 shares from 1,427,825 shares – a 996.1% increase.


    The transaction makes him 49.9% owner of what was previously a shell company that operated ethanol plants. On Oct. 27, the company announced that it would acquire assets of JBGL Builder Finance LLC and JBGL Capital LP and change its name to Green Brick Partners Inc. (NASDAQ:GRBK). As part of the deal David Einhorn (Trades, Portfolio) became chairman of the board of the new company.

      


  • David Einhorn Sees Opportunities In The Recent Choppy Market

    David Einhorn (Trades, Portfolio) has been frustrated at the lack of opportunities in recent months. The recent selloff has him excited about some positions that he has been able to pick up.


    Here he is discussing the market and opportunities.

      


  • Invest In These Hedge Funds At A Discount

    As of the close on 10/13/2014, Greenlight Reinsurance (GLRE), Third Point Reinsurance (TPRE), and Pershing Square Holdings (AEX:PSH) were selling at discounted prices compared to their book values. These three companies are led by 3 of the top investing gurus we follow, David Einhorn, Daniel Loeb, and Bill Ackman.


    Einhorn and Loeb are following the Warren Buffett model of using the float from an insurance company to essentially make investments on what is similar to an investment free loan. When insurance premiums are collected, the capital has to stay with the company in order to pay out the claims. The premiums collected, but not paid out yet, are referred to as float. As long as the underwriting business is profitable, the float mimics an interest free loan. A common metric used is the combined ratio. A ratio of 100 is break-even, and the lower the number, the more profitable the business. The underwriting profit is simply measured as premiums received minus expenses. In some years, claims might be higher due to certain events, so enough liquidity must be retained to pay them out. Most insurance companies invest the float in fixed income to generate extra cash flow and increase profits. The float from Greenlight Re and Third Point Re is managed by the hedge funds Greenlight Capital and Third Point. Einhorn is the manager of Greenlight Capital and Loeb is the manager of Third Point.

      


  • David Einhorn Buys 10% of Civeo Corp, Calls to Oust CEO

    Greenlight Capital founder David Einhorn (Trades, Portfolio) has raised his bet on one of his holdings, Civeo Corp (NYSE:CVEO) by 73.2%, according to GuruFocus Real Time Picks.


      


  • Top Movers of the Day: Nike and Micron Technologies

    Nike (NYSE:NKE) and Micron Technologies (NASDAQ:MU), a manufacturer of semiconductor memory chips, were the top two movers on Sept. 26 after the stocks jumped almost 9% and 6%, respectively.


    Yesterday, Nike released a strong first-quarter report for the three months ending Aug. 31. Revenue increased 15% year over year while revenue for the Converse brand saw similar growth, increasing 16% year over year. Nike’s online sales were up by 70% over the last quarter, and the gross margin increased to a comfortable 46.6%. 

      


  • Jim Simons, Renaissance Technologies Interview: Mathematics, Common Sense and Good Luck.


    1) He has a great sense of humor which is rare for an intellectual and scholar

      


  • Hedge Fund´s Returns are Trailing the Standard & Poor’s 500 Index

    In this article let's take a look at Ray Dalio (Trades, Portfolio), the founder and majority owner with a 84% stake in Bridgewater Associates Intermediate Holdings (BAIH), the hedge fund that manages $150 billion in assets under management. Bridgewater Associates operates as an international, employee-owned hedge fund manager. It provides its services to pension and profit-sharing plans, pooled investment vehicles, corporations and governmental entities. Since its inception in 1975, Bridgewater has generated net gains of $35.8 billion and that success made this guru the 84th-richest person in the world, according to Forbes.


    Industry return

      


  • Ten Stocks Picked By Super Investors And You Can Buy At A Lower Price Than The Gurus Paid

    It is important to learn from the best and clone their strategy, as noted by Mohnish Pabrai (Trades, Portfolio) of the Pabrai Investments. This author compiled a list of 60 Super Investors, with a combined asset of $428B under management, based on data from dataroma.com. Every manager in the list has a long and successful track record. A few of them, like David Einhorn (Trades, Portfolio), Bill Ackman (Trades, Portfolio), Lou Simpson (Trades, Portfolio), and Charlie Munger (Trades, Portfolio) are well known to the investment community. A corner stone strategy for these Super Investors is to pay less and get more, as noted by Bruce Berkowitz (Trades, Portfolio) of the Fairholme Fund (Trades, Portfolio). It would be fantastic way to invest by buying companies selected by the Super Investors and pay a lower price than they did.


    Below is a list of Super Investors:

      


  • What ROE Tells Me About DSW Inc.?

    In this article, let´s see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the Return on Equity (ROE), and we are going to analyze it in the case of DSW Inc. (NYSE:DSW).


    ROE is calculated as net income applicable to common shares divided by the average book value of common equity: ROE = Net Income / Av. Book Value

      


  • BIOF Biofuel Energy Corp Significantly Undervalued Short Thesis is Wrong

    This article is response to a article written by New Capital on Seeking Alpha on the July 21, 2014 titled, "BioFuel Energy – Day Traders Pushed The Price Above Reasonable Limits."


    The writer of that article has taken a short position in BIOF and argues that there are a number of reasons why he thinks the price of Biofuel Corp is to high and that he thinks insiders are selling 49% of their equity stake JBGL. I show below that a number of his points are in fact incorrect and that BIOF, actually represents a very interesting long investment opportunity. (I hold a long position in BIOF)

      


  • Pardon my mistake – Einhorn likely to speak on GMCR at Robin Hood

    At the end of July, I did a rather detailed analysis on coat-tailing David Einhorn (Trades, Portfolio)'s Keurig Green Mountain short.


    I stated at the time that there was, say, a 40% chance of him speaking about GMCR at the Value Investors Conference.

      


  • SunEdison Surprised Wall Street: It´s Time to Be Long on Energy Finance

    In this article, let's take a look at SunEdison, Inc. (NYSE:SUNE), a $5.76 billion market cap solar company, in which some months ago the hedge fund manager David Einhorn (Trades, Portfolio) disclosed a "large" long position, according to Bloomberg News.


    1. Company history and business

      


  • 5 Minimal Peter Cundill-Like Moves For Your Portfolio

    Have you read the book There's Always Something to Do by Christopher Russo-Gill?


    If not, it should move right to the top of your summer reading list. It is the accumulated reflections of Peter Cundill. A Canadian value investor, Cundill used the Graham Deep Value Approach to return a little more than 15 percent, on average annually, to investors for almost 30 years.

      


  • 5-year lows: ARMOUR Residential REIT, EXCO Resources, Fifth Street Finance, and Atlas Resource Partners

    According to GuruFocus list of 5-year lows, these Guru stocks have reached their 5-year lows: ARMOUR Residential REIT Inc, EXCO Resources Inc, Fifth Street Finance Corp, and Atlas Resource Partners LP.


    ARMOUR Residential REIT Inc (NYSE:ARR) Reached the 5-year Low of $4.25

      


  • Investing Gurus To Follow For The Next 30 Years

    At GuruFocus we follow many of the top investment managers around the globe. I like to follow the investing gurus that are in control of a publicly traded company that I can buy. The gurus I follow include Warren Buffett (Berkshire Hathaway, BRK.A), Carl Icahn (Icahn Enterprises, IEP) and Prem Watsa (Fairfax Financial, TSX:FFH, FRFHF). All of their stocks have performed well over the years. We can still make money with these gurus, but for how long? Warren Buffett (Trades, Portfolio) is 83 years old and Carl Icahn (Trades, Portfolio) is 78. Prem Watsa (Trades, Portfolio) is the youngest of the three mentioned at 64. There are some great investment gurus in their early 50’s such as Daniel Loeb (Third Point Re, TPRE) and Tom Gayner (Markel, MKL) that we can follow for years, but I wanted to see if I could find gurus that are at even earlier stages in their careers.


    Three gurus under the age of 50 that we can potentially follow for decades to come are David Einhorn (Greenlight Capital Re, GLRE), Warren Lichtenstein (Steel Partners Holdings, SPLP), and Sardar Biglari (Biglari Holdings, BH). Each one is the chairman of their publicly traded company and makes investments that have direct effects on the performance of those companies. Another person to keep an eye on is Steven Toy, the chairman of the investment committee at Wilbur Ross’ Company, WL Ross & Company.

      


  • The Peril of Being a Copycat

    An acquaintance of mine recently expressed his regret in selling out his Idenix Pharmaceuticals Inc position before it got bought out by Merck. He was frustrated by having missed out on big profits. I asked him whether he understands complicated bio-pharm. He said no, bio-pharm is out his circle of competency. Then I asked him how much research he had done, he said the minimum. In the end, I asked him why he bought the stock without doing much research. His answer was “because Klarman bought it.”


    This is not an isolated instance in the investment world. I’ve seen a few other folks blindly following gurus, be it Seth Klarman (Trades, Portfolio) or David Einhorn (Trades, Portfolio), without proper due diligent on their own.

      


  • Now Inc Has The Characteristics Of A Successful Spinoff

    In general, spinoffs have outperformed the S&P 500 in their first few years of trading. There are two recent articles on GuruFocus providing information on spinoffs and their outperformance:




  • David Einhorn’s Top Stock Picks Post Major Gains

    David Einhorn (Trades, Portfolio)’s hedge fund firm Greenlight Capital is up 5.4% for 2014 through May, a positive turn from the 1.5% loss he reported for the first quarter. The fund was plagued by a 61% year-to-date increase in a significant short, Keurig Green Mountain Inc. (NASDAQ:GMCR). He also reported shorting a basket of technology stocks, where the Nasdaq 100 Technology Sector has risen 12% year to date. Athenahealth Inc. (NASDAQ:ATHN), another short which he announced on May 5, is down 6.4% since the start of the year, but has returned to around the level it was before he made the announcement.


    Einhorn has made impressive showings with his top long selections, however. Several have almost doubled from his average purchase price. Making up roughly 46% of his portfolio, Einhorn’s top positions are: Apple Inc. (NASDAQ:AAPL), Micron Technology Inc. (NASDAQ:MU), Marvell Technology Group Ltd. (NASDAQ:MRVL) and Cigna Corp (NYSE:CI).

      


  • Invest in Einhorn’s Portfolio Through Greenlight Re

    Using the S&P 500 Grid at GuruFocus I found David Einhorn’s Greenlight Capital Re (GLRE) near the top of the list for small cap net buys from the investing gurus. There were six buys and no sales from the gurus. Greenlight Capital Re is an interesting company because it is a way to gain access to Greenlight Capital’s portfolio without needing the typical $1 million to invest in most hedge funds.


    Company Background

      


  • David Einhorn's Greenlight Capital Re Investor Presentation - Rethinking Reinsurance



  • David Einhorn AthenaHealth Short Thesis Presentation



  • David Einhorn's Top-Five Holding - Greece's Alpha Bank

    David Einhorn (Trades, Portfolio)’s Green Light Capital hedge fund was more acquisitive for international stocks last quarter, with half of its new holdings based in countries outside the U.S. In his letter to shareholders, Einhorn also mentioned that one of his top five long positions is now a Greek bank, Alpha Bank (ATH:ALPHA). The investors other top picks as of the first quarter’s end are Apple (NASDAQ:AAPL), gold, Marvell Technology (NASDAQ:MRVL), Micron Technology (NASDAQ:MU) and Oil States International (NYSE:OIS).


    Alpha Bank’s share price:

      


  • Greenlight's David Einhorn Buys International Stocks in First Quarter

    In the first quarter, David Einhorn (Trades, Portfolio)’s Greenlight Capital purchased four news stocks, of which two hailed from outside the U.S. In a rising price environment, the price-conscious investor is increasingly going abroad for good values. He revealed in his first quarter letter that one of his fund’s top five positions is a Greek company, Alpha Bank AE (ATH:ALPHA), and also mentioned that he owned other Greek banks. The two new international stocks he bought in quarter one are: Resona Holdings (TSE:8308) and Altice S.A. (XAMS:ATC).


    Resona Holdings (TSE:8308)

      


  • Tech Stocks with David Einhorn’s New Short Criterion of 90% Downside

    David Einhorn (Trades, Portfolio) had a mediocre quarter one, dropping 1.5% while the S&P gained 1.2%, but he spies opportunities up ahead, according to his Greenlight Capital letter. One such is a short of a basket of technology stocks he believes are far overvalued and due for a correction, for which there is a precedent from the last tech bubble.


    “Given the enormous stock price volatility, we decided to short a basket of bubble stocks,” he wrote in his letter. “A basket approach makes sense because it allows each position to be very small, thereby reducing the risk of any particular high-flier becoming too costly. The corollary to 'twice a silly price is not twice as silly' is that when the prices reconnect to traditional valuation methods, the de-rating can be substantial. There is a huge gap between the bubble price and the point where disciplined growth investors (let alone value investors) become interested buyers. When the last internet bubble popped, Cisco (NASDAQ:CSCO) (the best of the best bubble stocks) fell 89%, Amazon fell 93%, and the lower quality stocks fell even more.”

      


  • David Einhorn Comments on Conn's

    CONN (NASDAQ:CONN) is a specialty retailer of appliances, furniture, mattresses and electronics with 79 locationsin Texas and the Southwest. CONN finances 77% of customer purchases through its proprietarysubprime credit portfolio. In February, the company announced 33% comparable store salesgrowth in Q4 with strong gross margins. However, it also announced increased credit losses andreduced earnings guidance from a range of $3.80-$4.00 to a range of $3.40-$3.70 for calendar2014. Given the market’s past experience with deterioration in subprime credit, the stockreaction was severe: The price fell from $79 at the start of the year to $32 on the news. We believe that this is a retailer with 15-20% unit growth and current double digit comparable storesales growth, and that the market overreacted to moderately bad news. We acquired shares at anaverage price of $35.49 and they ended the quarter at $38.85.

    From David Einhorn (Trades, Portfolio)'s first quarter 2014 investor letter.   


  • David Einhorn Comments on Resona

    We established a position in Resona (TSE:8308), the largest Japanese regional bank, at a price of ¥547,representing 0.8x book value and 8x earnings. Resona was formed through the 2002-2003merger and recapitalization of three local banks in the Tokyo and Osaka regions. As part of thatrecapitalization, the Japanese government bought a majority equity stake. Under newmanagement, the bank cleaned up its balance sheet, began paying back the government stake,and has been profitable every year since, reaching a 13% ROE last year. In 2013, managementannounced a five-year plan to buy out the remaining government shareholding. Due to strongerthan expected earnings, that plan is well ahead of schedule, and the company is buying backstock from the government at very attractive valuations. The accretion from the buyback doesnot appear to be reflected in analyst models. With the more volatile international Japanese bankstrading at 9x EPS, and its peer regionals at 13x EPS, Resona is cheap on both an absolute andrelative basis. Resona shares ended the quarter at ¥499.

      


  • Greenlight Capital Q1 2014 Letter



  • After Micron, David Einhorn Targets This Small Company

    David Einhorn (Trades, Portfolio)’s Greenlight Capital (NASDAQ:GLRE) has recently released a preliminary proposal in which the business could acquire a small ethanol company called BioFuel Energy (BIOF). As a result, BioFuel’s shares have soared in after hours trading, showing an increase of more than 50%. Before this, David Einhorn (Trades, Portfolio) added Micron Technology (NASDAQ:MU) to his portfolio. The DRAM maker will likely release its quarterly results on Thursday in which the company could post significant improvements in its revenues and income.


    Greenlight Capital has proposed to purchase the biofuel developer through a $275 million transaction, which involves cash and equity. In a letter addressed to BioFuel’s board, David Einhorn (Trades, Portfolio) and Jim Brickman of JBGL Funds said, “We believe that this proposal provides an opportunity for the Company and its stockholders to acquire an interest in a business with long term equity potential and an attractive portfolio of assets”

      


  • Low-P/E Stocks David Einhorn Just Added to His Portfolio

    In 2013, David Einhorn (Trades, Portfolio) of hedge fund Greenlight Capital returned 19.1%, lagging the S&P 500’s return of 31.55%. The value-oriented investor is no stranger to a stray underperforming year, however, on his way to achieving a 19.5% annualized return over the long run since his firm’s inception in 1996.

    Some of Einhorn’s undervalued stocks have yet to appreciate or overcome their short-term setbacks that have rendered negative reputations in the market, presenting low P/E opportunities. He bought two new low-P/E stocks in the fourth quarter.  


  • Five-Year Lows: Boardwalk Pipeline Partners LP, Piedmont Office Realty Trust Inc., Murphy USA Inc. and McDermott International Inc.

    According to GuruFocus list of five-year lows, these Guru stocks have reached their five-year lows: Boardwalk Pipeline Partners LP, Piedmont Office Realty Trust Inc., Murphy USA Inc. and McDermott International Inc.


    Boardwalk Pipeline Partners LP (NYSE:BWP) Reached the Five-Year Low of $12.60

      


  • 4 Years and 1,500% Later with CONN

    Over 4 years ago, I read Quality of Earnings and it felt like drinking from an ice cold fountain after dying of thirst.


    It felt sooooo good.

      


  • 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 (NYSE: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 (NYSE: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 (NASDAQ: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 (NASDAQ:MU), BP plc (NYSE:BP) and Anadarko Petroleum (NYSE: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 (NYSE:GM), Apple (NASDAQ:AAPL) and Delphi Automotive PLC (NYSE:DLPH).


    David Einhorn’s Top Five Holdings:

      


  • Apple: Supporting Carl Icahn

    A few months ago, Carl Icahn, who is one of Apple's (NASDAQ: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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