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

  • 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. (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

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