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Billionaire hedge fund manager David Einhorn’s portfolio revealed

David Einhorn

David Einhorn is the president of Greenlight Capital, a “long-short value-oriented hedge fund” that he founded in 1996 after graduating from Cornell University.

Between 1996 and 2006, his fund achieved an annualized return of 26%, comfortably outperforming the market.

However, between 2014 and 2018, the fund’s assets under management more than halved because of poor performance.

The fund was down 11.3% from 2014 to 2017 and another 34% in 2018 alone.

Over the last year, Einhorn showed his mettle with this fund returning 17.7% at a time when most other investors are losing money.

Einhorn published a book, “Fooling some of the people all of the time,” on a six-year battle on a short position he had in Allied Capital.

Einhorn accused the company of defrauding the Small Business Administration.

A lengthy investigation by the U.S. Securities and Exchange Commission (SEC) found that Allied broke securities laws relating to the accounting and valuation of illiquid securities it held.

In some circles, Einhorn has earned the nickname Lehman slayer due to another high-profile short position on Lehman Brothers in July 2007.

He shared his position publicly after he shorted the company, and Lehman declared bankruptcy in September 2008.

Einhorn and his team remain quite critical of the Fed’s moves this year, emphasizing that the central bank is focused solely on decreasing demand. In turn, it will reduce income and wealth and lower living standards.

He said it would be better to engage in productive investment to increase supply. Of course, higher interest rates reduce investment and supply.

In Greenlight’s third-quarter letter to investors, Einhorn said, “as long as official policy is to make the stock market go down so that people are less wealthy, so that they buy fewer things, so that prices stop going up, all while doing nothing about fiscal policy, we believe the correct posture is to be bearish on stocks and bullish on inflation.”

Greenlight Capital took advantage of the arbitrage opportunity in the past quarter by purchasing Twitter shares at lower prices before Elon Musk’s buyout offer was enforced.

It also started a new position in Intel and significantly added to his positions in LivaNova, Concentrix Corporation, and Danimer Scientific.

Einhorn’s positions in Global Payments and Change Healthcare were cut nearly in half.

The table below shows Greenlight Capital’s share positions as of 30 September 2022.

NameValue ($ Million)Portfolio Weight
Green Brick Partners$361.525.6%
Twitter (Sold)$188.013.3%
Brighthouse Financial$145.110.3%
CONSOL Energy$110.27.8%
Teck Resources$65.84.7%
Kyndryl Holdings$60.04.3%
Office Depot$59.54.2%
LivaNova$41.22.9%
SPDR Gold Trust ETF$38.72.7%
Capri Holdings$38.02.7%
Southwestern Energy$37.32.6%
Resideo Technologies$29.92.1%
Global Payments$29.52.1%
iShares Silver Trust ETF$27.31.9%
Weatherford International$24.31.7%
Change Healthcare$22.01.6%
Victoria’s Secret$19.91.4%
Intel$18.41.3%
Graphic Packaging$16.41.2%
Civitas Resources$16.01.1%
GoPro$13.30.9%
Concentrix Corporation$12.30.9%
Galapagos NV ADR$6.20.4%
Danimer Scientific$5.70.4%
News Corp$5.60.4%
CNX Resources$3.50.2%
Waverley Capital Acquisition Corp$3.40.2%
FinServ Acquisition Corp$3.10.2%
Panacea Acquisition Corp$2.70.2%
Rivian Automotive$2.40.2%
Gain Therapeutics$1.80.1%
Talis Biomedical Corporation$1.50.1%

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