David Einhorn is one of the most reputable hedge fund managers in recent years. One of the hallmarks of this value investing legend is his ability to invest in great deals, but also to bet against businesses in trouble. This article will help you get to know David Einhorn better, his life, his investment style and his best phrases.
Tabla de contenido
- 1 The life of David Einhorn
- 2 David Einhorn's investing style
- 3 Famous quotes from David Einhorn
- 4 Recommended sources and articles on David Einhorn
The life of David Einhorn
David Einhorn was born in New York on November 20, 1968. He studied Government at Cornell University, graduating in 1987 with the distinction summa cum laude.
After graduation, he began working in the world of investment and finance in a private equity company. She founded her hedge fund,. Greenlight Capital, in May 1996 with a capital of $ 900.000. He currently manages about $ 9.000 billion and has a personal fortune valued at about $ 1.450 billion.
David Einhorn at the World Series of Poker
Aside from being one of the best investment managers today, Einhorn could well have pursued another of his passions, poker. No big event is often missed and has gone on to win over $ 5 million in prizes. Of course, David donates all his profits from the game to charitable causes.
David Einhorn's investing style
David Einhorn's investing style is characterized by his aggressiveness, investing both long and short (investing short involves betting that the price of a financial asset will fall). Its success is based on a detailed analysis of the businesses of the companies in which it is fixed, looking for details that other investors are not able to see. In this way he has uncovered major accounting fraud, earning a lot of money thanks to it.
The great respect of other investors towards David Einhorn makes him have a great influence on the markets with his predictions. In fact, it is normal for a stock to go up strongly when he buys shares or to fall strongly when David bets against him. This way of reacting from the market to its stock market operations is called “Einhorn effect”.
This past year has been a nightmare for Einhorn, ending with a 20% loss on his failed bets on SunEdison, Micron Technologies and Consol Energy.
Despite its The year horribililis, Einhorn has a spectacular track record. Since its inception in May 1996, its hedge fund Greenlight Capital It has an annualized return of 16,5%.
Besides investing and playing poker, Einhorn is the author of the book “Fooling some people all the time”, In which he tells the story of his short position on Allied Capital, which was possibly the operation that catapulted him into the global elite of managers. I have not had the pleasure of reading it yet, but I already have it in my possession and hope I can enjoy it this summer.
Famous quotes from David Einhorn
"What is a stock that has fallen 90%? One stock fell 80% and then fell again at half price. Remember this the next time someone recommends you buy a stock just because it has suffered a big drop. "
"I have never believed that the market was efficient"
"As an investor, my mission is to determine what will happen instead of what should happen"
"Investing and poker require similar skills"
“Both poker and investing are games of incomplete information. You have certain knowledge and you are looking for situations in which you have an advantage, be it psychological or statistical. "
Recommended sources and articles on David Einhorn
- David Einhorn on Wikipedia
- David Einhorn en Forbes
- How David Einhorn Became A Hedge Fund Legend
- The David Einhorn Effect on Stocks
- A Dozen Things I’ve Learned from David Einhorn About Investing