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.
From childhood, David Einhorn showed a love of mathematics and was especially good at gambling.
Education. Management career
David Einhorn graduated from Nicolet High School with flying colors in 1987, which allowed him to move on and obtain new knowledge and degrees.
So, after graduating from Nicolet High School, he decided to enroll in Cornell University and successfully graduated with a bachelor's degree in financial management in 1991.
He led an active student life and was even a member of the renowned fraternity Sigma Alpha Epsilon.
Five years after graduating and gaining his first experience as a manager, David Einhorn and his friend Jeff Keswin decided to create their own hedge fund and named it Greenlight.
Initially, the two young talents planned to raise around $10 million at the start, but no one was eager to trust the newcomers. To save as much as possible, David rented a small, windowless space.
To successfully launch the company, David had to have difficult conversations with his relatives, who subsequently invested $500,000. He also raised another $400,000 from investors, allowing him to enter the stock market with $900,000.
David Einhorn's Tactics
Initially, Einhorn followed a simple tactic: he would find a small company with weak stocks and begin actively trading against it.So in 1996, he managed to successfully invest in CR Anthony shares, which brought the fund a 500 percent profit and instant fame.
After the company earned over 50 percent profit the following year, its capital exceeded $13 million, and David Einhorn decided not to accept investor funds. However, three years of trading and reflection on his tactics and turnover led Einhorn to resume accepting investor funds.
David Einhorn gained particular notoriety for shorting Allied Capital in 2002 and Lehman Brothers in 2007.
The most interesting thing is that open short positions on Lehman Brothers occurred a couple of months before its death, which allowed them to make huge amounts of money on the fall of the stock.
In 2012, David Einhorn attended an investor conference hosted by Herbalife.
During a discussion of the company's products, promotional terms, and internal management mechanisms, David Einhorn rudely said, "Thanks, guys, that's all I have." Herbalife shares lost 20 percent in value and failed to reach their original price for several months.
Besides asset management, David is also an excellent poker player, and even took third place in the 2012 WSOP World Poker Tournament in the No-Limit Hold 'Em Event.
He donated the winnings, which amounted to more than four million dollars, to a charity.
Greenlight Capital currently manages over $8 billion, and its owner, David Einhorn, is actively involved in philanthropy and invests in various medical programs. He is also an active member of the Republican Party.
