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What’s the Next Big Move for David Einhorn?

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Dec. 13 2019, Updated 12:22 p.m. ET

David Einhorn has been bearish about Tesla (TSLA) since a few years back. In November 2017, Einhorn declared that he is shorting Tesla and included the company on his “bubble basket” list. Perhaps because of this, the stock has fallen nearly 29.7% between November 2017 and August 2019.

As of September 6, 2019, Tesla’s stock has fallen nearly 31.7% on a year-to-date basis. This shows that Einhorn’s firm benefited from the short position against Tesla. In the past, he compared Tesla with Lehman Brothers investment banking company.

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Billionaire David Einhorn is prominent in the hedge fund industry. He is known for his bold investment strategies. Also, he has become very well known in the industry for his various short and long calls on a variety of stocks in the past few years. Also, he is the president and founder of Greenlight Capital Re (GLRE). Greenlight Capital is a hedge fund invested in corporate debt offerings and equities.

Top buys for Q2 2019

In the second quarter of 2019, David Einhorn’s top buys were The Chemours Company (CC), Scientific Games Corporation (SGMS), Adient (ADNT), Dillard’s (DDS), and KAR Auction Services (KAR). Except for Adient, all these above stocks were Einhorn’s Greenlight Capital’s fresh buys in 2019. All these stocks represent 6.59%, 2.18%, 2.1%, 3.98%, and 1.63% holdings of the firm’s portfolio, respectively.

The second quarter of 2019 saw five top holdings of the firm from various sectors. Those holdings were General Motors (GM), Green Brick Partners (GRBK), AerCap Holdings (AER), Brighthouse Financial (BHF), and CONSOL Coal Resources LP (CCR). These stocks represent 16.65%, 14.78%, 13.36%, 8.91%, and 6.75%, respectively, holdings in the firm’s portfolio. Although the firm reduced some of its position in General Motors on a sequential basis, it has been firm’s top holding for the last five years.

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Greenlight Capital is one of the largest investors

In the second quarter of 2019, David Einhorn’s Greenlight Capital was the thirty-first largest investor in General Motors with around $5.8 million in shares. However, Capital World Investors was the first largest investor with $111.8 million in shares. General Motors share prices returned 15.9% on a year-to-date basis, as of September 6, 2019. Over the last five years, the stock returned 12.1%. The broader market S&P 500 Index (SPY) returned 48.4%.

In 2019, the top sells of the firm were General Motors (GM), Valaris plc (VAL), and Voya Financial (VOYA). Other top sells were Seadrill (SDRL) and Altice USA (ATUS). Although the firm reduced some of its position in General Motors, it remained the firm’s top holdings in the last quarter. However, on a sequential basis, the firm reduced its holdings in these stocks by 7.37%, 3.36%, 1.32%, 0.61%, and 0.54%, respectively.

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