Who is David Einhorn? His fund gained over 35% in 2022 regaining its losses. Twitter, Greenbrick Partners and more – let's have a look at Einhorn's portfolio
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One year was enough for David Einhorn's Greenlight Capital fund, incurred since 2015, to recover. David Einhorn was once called young Warren Buffett . He had a great start to his career, but then things went wrong. However, 2022 will be successful.
He made money on Twitter and the bear market
Einhorn Fund Greenlight Capital in 2022 earned - despite the slump on the stock exchanges - as much as 36.6%. In this way, he made up for the losses he suffered after 2015. Then it was time to buy growth companies, and the value companies in which Einhorn invests stood still. In 2015, the fund unit lost 20.4% on valuation, and in 2018 as much as 34%.
In January 2022, Einhorn took a defensive stance, which he informed about in letters to investors. And thus he showed an extraordinary investment nose.
What does David Einhorn currently have in his wallet ? The state of his portfolio at the end of September 2022 is known. The value of assets reached USD 1.4 billion, and the 10 largest positions accounted for 78.46%. By far the largest item in his portfolio was the shares of Green Brick Partners - a developer operating mainly in Texas. He certainly made a lot of money from Twitter shares - he took a position at an average price of $37 per share, Elon Musk bought all the shares at $54.20.
Top 10 items in D. Einhorn 's portfolio
Source : acquirersmultiple.com
Who is David M. Einhorn?
Einhorn is one of the most followed investors on Wall Street due to his bold moves and deep knowledge of value investing. According to Forbes, the value of his fortune is USD 1.4 billion (at its peak, in March 2015, it was USD 1.9 billion).
The founder of Greenlight Capital was born in New Jersey and moved to Wisconsin with his family at a young age. After graduating from Nicolet High School in Glendale , Wisconsin in 1987, he graduated from Cornell University in 1991.
At the age of 27, Einhorn founded Greenlight Capital. He had $900,000 from family and friends to start with. The fund is known for its value-oriented long-short investments and has had great success with short selling positions.
Einhorn rose to fame in 2002 when he successfully challenged the accounting practices of a mid-cap finance company called Allied Capital and exposed his short position on its shares. A five-year investigation by the U.S. Securities and Exchange Commission (SEC) confirmed Einhorn 's position and revealed that Allied had indeed violated accounting standards related to securities law and the valuation of illiquid instruments. After this event, Einhorn wrote the book Fooling in 2010 Some of the People All of the Time ", in which he revealed every minute detail about the Allied case.
Another success for Einhorn was the shorting of Lehman Brothers shares in July 2007 based on the company's high exposure to the real estate market. While questioning Lehman Brothers ' accounting practices , Einhorn also found inaccuracies in their financial statements. He went short in April 2008, and Lehman filed for bankruptcy a few months later.
There are also dark pages in Einhorn's career. In 2012, Einhorn was fined £7.2 million by the UK securities watchdog FSA for engaging in market manipulation.
