David Einhorn

David Einhorn

Last Update: 05-15-2017

Number of Stocks: 37
Number of New Stocks: 6

Total Value: $7,195 Mil
Q/Q Turnover: 27%

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

David Einhorn Watch

  • 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.

      


  • David Einhorn Strengthens Effort to Shake Up GM

    David Einhorn (Trades, Portfolio) has picked up the lowest-P/E stock in the S&P 500 and on Wednesday strengthened his efforts to enforce changes at the resistant company.


    The Greenlight Capital founder said in a release that he had formally nominated three directors to ensure General Motors’ (NYSE:GM) board “objectively considers” his plan to split the company’s stock into two share classes. In addition to the nominees, his plan, which he accused GM of distorting, is also up for vote at the 2017 annual shareholder meeting.

      


  • The Most Important Lessons

    During the past few years, I’ve learned an embarrassing number of lessons. While some of the lessons are painful, hopefully I’ve grown out of them stronger and better.


    During the next couple of months, my plan is to jot down the most important lessons that I have learned. I hope this will not be a monologue – I welcome all the readers to share the lessons you have learned over the years either in the comments area or in your own articles. In doing so, I also hope not only will I be reminded of the lessons, but also we can grow together as value investors who continuously seek the truth in investing.

      


  • David Einhorn Discusses Plan to Unlock Value at General Motors

    David Einhorn (Trades, Portfolio) on Tuesday discussed his plan to divide General Motors' (NYSE:GM) common stock into two CUSIP investor classes to cater to those who like its hefty 4% dividend yield and those who like its other 75% of earnings. Einhorn said the plan would unlock "tremendous value," but GM has balked, saying the move is unprecendented and would negatively affect their credit rating.


      


  • David Einhorn to CNBC: Invest Here Instead of Infrastructure for Trump Presidency

    CEO of Greenlight Capital David Einhorn (Trades, Portfolio) told CNBC Tuesday that in light of the Trump presidency, investors should pursue consumer durable stocks rather than infrastructure stocks. Einhorn would not comment on specific holdings except to say that he is still long Apple (NASDAQ:AAPL) and is following a particular theme.

      


  • General Motors Is Not Firing on All Cylinders

    Renowned value investor David Einhorn (Trades, Portfolio) was reportedly buying up more General Motors (NYSE:GM) shares, including calls, as of recent filing.


    According to GuruFocus data, Einhorn’s hedge fund – Greenlight Capital (NASDAQ:GLRE) – held GM-Call shares amounting to 25 million or 14.97% of all assets management by the hedge fund as of December. As observed, Greenlight also had reduced its stake in equity shares by 22.5% or 7.9% of total assets management.

      


  • David Einhhorn Reduces GM Stake, Places Call Option in 4th Quarter

    Hedge fund manager David Einhorn (Trades, Portfolio)´s Greenlight Capital disclosed an equity portfolio valued at some $5.45 billion at the end of the fourth quarter of 2016 and a top 10 concentration of 71%.


    In this article, we will look into the third top holding held at the end of the fourth quarter: General Motors Co. (NYSE:GM).

      


  • David Einhorn Says Trump Bringing ‘High Degree’ of Uncertainty, Inflation

    In a conference call to discuss fourth-quarter and full-year results for his reinsurer, Greenlight Re, chairman David Einhorn (Trades, Portfolio) gave his thoughts on his investing performance, several of his holdings and his economic outlook under President Donald Trump.


    The much-followed value investor, who usually concentrates on companies’ financial fundamentals, said the state of Trump’s administration was playing into his positive prediction for gold despite its recent pullback.

      


  • David Einhorn Buys Buffett’s Monsanto, Retail, Apple in Q4

    David Einhorn (Trades, Portfolio) matched some big investors and diverged from the majority in his fourth-quarter buying activity.


    Einhorn is known for adhering to picking stocks that look cheap based on fundamental analysis, having contrarian opinions and waging short-selling campaigns. Often celebrated for his value investing prowess, in 2016 he swung back to a 7.2% return after a challenging year in 2015 in which he lost 20.2%. Since its inception in 1996, Einhorn’s Greenlight Capital hedge fund has returned 16.1% and has had only two down years in its history.

      


  • Walgreens, Rite Aid Reduce Price, Postpone Closing of Merger

    Walgreens Boots Alliance (NASDAQ:WBA) and Rite Aid Corp. (NYSE:RAD) announced on Monday they are reducing the price and postponing the close of their definitive merger agreement.


    After the announcement, Rite Aid shares fell 15% in premarket trading while Walgreens shares rose 0.3%.

      


  • 20 Questions With Spanish Value Investor Paco Lodeiro Amado

    Paco Lodeiro Amado is a 32-year-old value investor from Coruña, Spain. He teaches value investing on his website, Academia de Inversión, which is one of the most respected and well-known value investing websites in Spanish.


    1. How and why did you get started investing? What is your background?

      


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