Talented trader and manager David Einhorn
David Einhorn is currently one of the most respected hedge fund managers, as well as the owner of Greenlight Capital, whose fortune is estimated at more than $6 billion.
Einhorn is considered one of the most open managers, since he always actively comments on his transactions and pays due attention to the press, justifying his decisions.
Einhorn’s word has such enormous authority that after his statements about the weakness and strength of a particular company, one can always observe the reaction of investors in a matter of minutes, which is why many shareholders of the affected companies dislike him so much.
Actually, David Einhorn has a huge track record, so the story of his success will be not only interesting for you, but also educational.
David was born on November 20, 1968 in New Jersey. His family was quite wealthy, which later affected his studies and career.
Since childhood, David Einhorn showed a love for mathematics and was especially good at gambling.
Education. Manager career
David Einhorn very successfully graduated from Nicolet High School in 1987, which allowed him to move on and gain new knowledge and diplomas.
So, after graduating from Nicolet High School, he decides to join Cornell University and successfully graduates from the educational institution with a bachelor's degree in financial management in 1991.
He led an active student life and was even a member of the famous Sigma Alpha Epsilon fraternity.
Five years after graduating from school and gaining his first managerial experience, David Einhorn and his friend Jeff Keswin decide to create their own hedge fund and name it Greenlight.
Initially, the two young talents planned to raise about $10 million at the start, but no one was in a hurry to trust the newcomers. In order to save as much as possible, David rents a small room without a single window.
To get off to a successful start, David had to have difficult conversations with his relatives, who subsequently entrusted him with 500 thousand dollars. We also managed to attract another 400 thousand from investors, which ultimately allowed us to enter the stock market with a sum of 900 thousand dollars.
David Einhorn's Tactics
Initially, Einhorn adhered to simple tactics, namely, he found a small company with weak shares and began to actively play against it.So in 1996, he managed to successfully invest in CRAnthony shares, which brought the fund 500 percent of the profit and instant fame.
After the company earned more than 50 percent of its profits the following year, the company's capital exceeded $13 million, and David Einhorn decided not to accept investor money. However, three years of trading and thinking about his tactics and turnover led to Einhorn deciding to resume accepting investor funds.
David Einhorn gained particular fame after he played short against Allied Capital in 2002, as well as against Lehman Brothers in 2007.
The most interesting thing is that open positions to sell Lehman Brothers occurred a couple of months before his death, which made it possible to earn a huge amount of money from the fall of the stock.
In 2012, David Einhorn took part in an investor conference convened by Herbalife.
During a discussion of the company's products, stock terms, and internal governance mechanisms, David Einhorn said gruffly, "Thanks guys, I'm done," Herbalife shares lost 20 percent in value and were unable to reach their original price for several months.
Also, in addition to asset management, David is an excellent poker player, and he even took third place in the world poker competition WSOP 2012 in the No-Limit Hold 'Em Event.
He donated the winnings, which amounted to more than four million dollars, to a charitable foundation.
Today, Greenlight Capital has more than $8 billion under management, and its owner, David Einhorn, is actively involved in philanthropy and investing in various medical programs. He is also an active member of the Republican Party.