David Einhorn is renowned as the co-founder and president of the hedge fund Greenlight Capital, which has grown from $1 million under management to $27 billion in 2023. Einhorn has been able to grow the hedge fund through his ability to find undervalued stocks and implement a long-short investment strategy, whereby he buys stocks that he expects to rise while shorting those he expects to fall. This strategy, combined with Einhorn’s contrarian approach to investing, meant that investors in the fund achieved an average annual return of 26% in the fund's first decade — thus establishing Einhorn’s name in the industry.
In addition to his investment skills, Einhorn has also attracted attention for his public statements and notable investment decisions. Einhorn is not known for being quiet. For instance, he publicly called for Microsoft’s CEO, Steve Ballmer, to step down when the company was surpassed by Google and Apple in market value. Einhorn also made headlines when he repeatedly chose to short the US investment bank Lehman Brothers ahead of the financial crisis, which ultimately ended in the bank's collapse. As a result of episodes like these, people began talking about the "Einhorn Effect," referring to the market fluctuations that occur when Einhorn either comments on or trades a stock.
In his role as an investor, David Einhorn has also written the acclaimed book Fooling Some of the People All of the Time – A Long Short Story, where he discusses the responsibility of banks, analysts, journalists, and legislators in the 2008 financial crisis.
Einhorn graduated with honours from the Ivy League school Cornell University. He began his career at the hedge fund Siegler Collery & Co in 1993, which later led to the founding of Greenlight Capital. In addition to his work as an investor and author, Einhorn is also known for his poker skills, with the prize money often donated to charitable causes.
Are you interested in learning from the man who has a knack for playing his cards at the right time and finding hidden gems in the stock market? Then don’t miss David Einhorn at SKAGEN Funds' New Year's Conference during the session «Virtual fireside chat and Q&A with value investor David Einhorn».