David Einhorn

David Einhorn

Last Update: 08-14-2017

Number of Stocks: 33
Number of New Stocks: 7

Total Value: $6,198 Mil
Q/Q Turnover: 10%

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

David Einhorn Watch

  • David Einhorn Discusses Tesla, GM, Pitches Tempur Sealy at Dallas Investing Conference

    Greenlight Capital’s David Einhorn (Trades, Portfolio) discussed some of his favorite stock picks in an interview at the 11th Annual Great Investors’ Best Ideas Investment Symposium in Dallas on Tuesday.


    The annual conference is a high-priced fundraiser benefiting the Michael J. Fox Foundation for Parkinson’s Research and the Vickery Meadow Youth Development Foundation. In the past, other well-known investors like Bruce Berkowitz (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and T Boone Pickens (Trades, Portfolio) have pitched several stock ideas to attendees.

      


  • Why Do These Fools Keep Betting Against Buffett?

    Ted Seides lost a bet against Warren Buffett (Trades, Portfolio) when he pitted a fund of hedge funds against the S&P 500 (SPY) in a 10-year race for best performance. Buffett recently reissued the challenge and did not have to wait long for takers.


    Despite losing the bet, Seides is still a winner because he was not known nine years ago. His fund of hedge funds was ahead for at least three years or so. The bet garnered an enormous amount of publicity and Seides is now regularly invited to financial podcasts. Even though he lost the bet and the hedge fund industry is now widely ridiculed for not beating a "simple index," it probably helped him. This basically explains why now another “fool” is eager to take on Buffett. This time it is Mark Yusko:

      


  • Rite Aid Plummets on Weak Quarterly Sales, Revenue

    Drugstore chain Rite Aid Corp. (NYSE:RAD) reported its second-quarter 2018 results before the opening bell on Sept. 28.


    The Pennsylvania-based company posted a loss of 1 cent per share, which was in line with estimates. Quarterly revenue of $7.7 billion was just shy of expectations of $7.8 billion and declined 4.4% from the prior-year quarter.

      


  • David Einhorn Starts Hewlett Packard Enterprise Position in 2nd Quarter

    David Einhorn (Trades, Portfolio), president of Greenlight Capital, seeks long-term capital appreciation through investments that have the potential to achieve consistent returns and safeguard capital. During the second quarter, the activist investor entered a position in Hewlett Packard Enterprise Co. (NYSE:HPE) and eliminated four positions from his portfolio: Time Warner Inc. (NYSE:TWX), Liberty Global PLC (NASDAQ:LBTYK), Syngenta AG (NYSE:SYT) and Cigna Corp. (NYSE:CI).


    Hewlett Packard Enterprise

      


  • Dislocations Create Fine Opportunities


    “… an investment approach that emphasizes intrinsic value will achieve consistent absolute returns and safeguard capital regardless of market conditions.” -David Einhorn

      


  • The Tesla vs. GM Battle Continues in Greenlight Capital's 2nd-Quarter Letter

    David Einhorn (Trades, Portfolio)’s second-quarter 2017 letter is out. In it, he comments on both his long General Motors Co. (NYSE:GM) position and his short Tesla Inc. (NASDAQ:TSLA) position. The full letter is embedded below. He broke up the commentary on purpose as it is not intended to be a pair trade, although it could be one. Quoted from the letter, emphasis mine:


      


  • The Car Company Beating Tesla

    Electric car company Tesla (NASDAQ:TSLA) has taken center stage this year, with the drama of high returns, sudden stock tumbles and short-seller pontifications. But in the past two years, a traditional, fossil-fuel-loving, luxury car company, Ferrair (NYSE:RACE), has raced past the one promising to redefine the future on a long- and short-term basis.


    Ferrari celebrated its 70th anniversary this year, and it began trading on the New York Stock Exchange in October 2015. The IPO came before its January 2016 spin-off from Fiat S.p.A., which owned 90% of its shares since 1988. Sergio Marchionne, the chairman and CEO, joined Fiat S.p.A. in 2004 and was instrumental in the merger between Fiat Group and Chrysler Group in 2009. Its CFO, Allessandro Gili, held positions with Fiat from 2002 to 2014 before advancing to his role at Ferrari in 2015.

      


  • Rite Aid: A David Einhorn Bargain Stock

    The merger between Rite Aid Corp. (NYSE:RAD) and Walgreens Boots Alliance Inc. (NASDAQ:WBA) disintegrated over the last six months, with the deal finally being called off in June. The company remains open and operating. Rite Aid still plans to sell 2,186 stores - about half of its locations - to Walgreens for $5.2 billion, using those proceeds in addition to the $325 million termination fee to pay down $7 billion in debt that has been crushing the balance sheet for years.


    The company will still generate well over $15 billion in sales, likely at better margins, by focusing on key East and West coast locations, with a large presence in California (577 stores) and Pennsylvania (535 stores) to build upon. When news of that deal closing hits the wire, the stock will have a momentary spike, yet longer term is where my focus remains.

      


  • David Einhorn Sells Apple, Time Warner, FMC

    David Einhorn (Trades, Portfolio) is president of Greenlight Capital (a value-oriented investment adviser). He manages a portfolio composed of 37 stocks with a total value of $7.195 billion. During the first quarter the guru sold shares in the following stocks:


    The investor reduced his Apple Inc. (AAPL) position by 31.63% with an impact of -3.66% on the portfolio.

      


  • Mason Hawkins Buys Consol Energy, Viasat, Sonic

    Mason Hawkins (Trades, Portfolio) has been chairman and CEO of Southeastern Asset Management since 1975, and he and his partners manage the Longleaf Partners Funds. He manages a portfolio composed of 92 stocks with a total value of $9.839 billion. During the first quarter the guru bought shares in the following stocks:


    The stake in Consol Energy Inc. (CNX) was raised by 12.47% with an impact of 0.95% on the portfolio.

      


  • David Einhorn Comments on General Motors Company

    While it was quiet on the portfolio front, we made more noise than usual (and more than we’d like) by making public our idea for General Motors Company (NYSE:GM) to unlock tens of billions of dollars of shareholder value. As a general matter, we prefer to avoid public activism. The last time we did this was with AAPL in 2013 after owning the stock for three years. This is a similar situation; we had owned GM shares for years before advancing our idea to management.


    When we offer companies private advice, they either take it, or they explain why they are not going to take it. Usually if they reject the idea, we understand the reasoning and prefer not to press the issue. Sometimes, we agree to disagree, and then decide whether to hold the stock or exit the position.

      


  • David Einhorn Comments on Perrigo

    Perrigo (NYSE:PRGO) is the largest manufacturer of private label over -the-counter (OTC) pharmaceutical products for U.S. retailers and pharmacy chains. Over the past decade the company acquired other business lines, including a portfolio of European OTC brands (Omega), a generics pharmaceutical business, and a royalty stream on a large multiple sclerosis drug that has since been divested. In November 2015, shareholders rejected a hostile takeover offer from Mylan worth $175 per share after the then-CEO laid out ambitious standalone earnings targets. Unfortunately for shareholders, these targets proved far too optimistic and the CEO ultimately departed. After several large guidance cuts, we believe the new management team has now set achievable earnings forecasts. Omega’s business suffered from large restructuring expenses last year that should not recur and has additional margin upside as it streamlines its product portfolio. The company also has a dominant market position in its core U.S. OTC business and should continue to grow profits in this segment. We believe the U.S. OTC business and Omega have profit and growth characteristics similar to consumer products businesses, which trade at healthy multiples due to the stability of their cash flows. We purchased PRGO at an average price of $68.81 per share or 11x our estimate of 2019 earnings. PRGO shares ended the quarter at $66.39.

      


  • David Einhorn Comments on Xerox

    Xerox (NYSE:XRX) spun out its business process outsourcing segment as Conduent (NYSE:CNDT) at the end of 2016. CNDT provides transaction and back-office processing for a variety of government and commercial clients. We believe CNDT is burdened with underearning contracts it can renegotiate or exit. Some business units that have been run as loss leaders can evolve to be profit centers, and management is in the process of running off other unprofitable business units. Management has also initiated a $700 million cost savings plan to further improve margins. Despite the current revenue headwinds as the business is restructured, management has committed to growing revenue by the end of 2018 and beyond, and they are incentivized to improve earnings. We purchased CNDT at an average entry price of $14.76 per share, which represents 11x our conservative case estimate for 2019 earnings. The stock ended the quarter at $16.78.

      


  • David Einhorn Comments on Rite Aid

    RAD (NYSE:RAD) fell from $8.24 to $4.25. We had expected that Walgreens and RAD would satisfy regulatory concerns and close the merger at $9 per share. Instead, the deal was re-cut to between $6.50 and $ 7.00, and even at this date, the regulatory concerns are not resolved. We are watching the situation carefully and we have trimmed the position, as our original thinking was incorrect.

      


  • David Einhorn Comments on Gold

    Gold rose over 8% to start the year. Nothing significant happened here (the White House columns are not gold yet); gold simply reversed a portion of the post-election decline it suffered last quarter. Gold remains a long-term position with a thesis that global fiscal and monetary policies remain very risky.

      


  • David Einhorn Comments on Chemours

    CC (NYSE:CC) settled its major litigation relating to the impact of PFOA, a discontinued toxic chemical used to make Teflon. The bear case arguing that the damages would bankrupt the company proved wrong, and the final figure was within our range of expectations. Meanwhile, the core titanium dioxide business continues to benefit from a tight market and rising prices. During the quarter, CC advanced from $22.09 to $38.50.

      


  • David Einhorn Comments on Apple

    AAPL (NASDAQ:AAPL) advanced from $115.82 to $143.66 as it reported a good quarter and the market is now realizing it is not the next Nokia or BlackBerry. AAPL’s market position is durable and its ecosystem is expanding with high-margin recurring services revenue streams. We continue to like AAPL because we think it is a superior company that still trades for less than a market multiple.

      


  • David Einhorn's Greenlight Capital First-Quarter Commentary 2017

    Dear Partner:

      


  • David Einhorn Fuels Warren Buffett’s General Motors

    David Einhorn (Trades, Portfolio), president of Greenlight Capital, seeks long-term capital appreciation through an emphasis on intrinsic value. During the first quarter, the activist investor made a big bet on General Motors Co. (NYSE:GM) and added two new positions: Conduent Inc. (NYSE:CNDT) and Micron Technology Inc. (NASDAQ:MU).


    General Motors

      


  • David Einhorn Doesn't Think Much of Tesla, Isn't Done With General Motors

    David Einhorn (Trades, Portfolio)'s Greenlight Capital's quarterly letter revealed the fund returned 1.3% for the quarter with the S&P 500 up 6.1%. Given Greenlight is only 28% net long, it makes sense for the firm to return about one-fourth of what the S&P 500 did, although it was not a quarter where it generated any visible net alpha.


    Its largest disclosed long positions are now  AerCap Holdings (NYSE:AER), Bayer (XTER:BAYN), Consol Energy (NYSE:CNX), General Motors Co. (NYSE:GM) and gold (GLD). It is funny how Einhorn always speaks of disclosed positions, which implies there could be some big ones he did not disclose. But as long as I have been reading these letters, he does not waver from that language. Einhorn is supposedly a stellar poker player and these little things betray that. Poker players learn to be very consistent in how they express things, in the game or in language, as not to give away information inadvertently.

      


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