David Einhorn’s Top Stocks Dominate the Market Even Though Greenlight Capital Doesn’t

Over at Institutional Investor’s Alpha, Stephen Taub wrote an article with the following headline: “David Einhorn’s Greenlight Capital Mostly Flat in September.” In Taub’s analysis, he mentions that Einhorn’s hedge fund returned just 0.5% in September. By comparison the S&P 500 ETF was up 3.2% last month, and NASDAQ-tracking ETFs were up near the 5% mark. In addition to falling behind in September, Taub reports that Einhorn and his fund returned 12.2% for the first three quarters of 2013, which is 5.7 percentage points below the return of the S&P 500 index.

David Einhorn

In his last 13F filing with the SEC, Einhorn’s top five positions accounted for roughly 53% of the entire value of his $5.3 billion equity portfolio. The top five were (along with their position size at the end of last quarter, September and YTD returns):

1. Apple Inc. (NASDAQ:AAPL): $950.7M/-2.4% return in September/-13.2% return YTD

2. General Motors (NYSE:GM): $567.8M/+5.4% return in September/+23.5% return YTD

3. Marvell Technology (NASDAQ:MRVL): $518.6M/-6.2% return in September/+55.6% return YTD

4. Aetna (NYSE:AET): $427.5M/+0.4% return in September/+38.4% return YTD

5. Cigna Corp (NYSE:CI): $360.5M/-3.3% return in September/+39.3% return YTD

As you can see, the only stock in Einhorn’s top five with a negative year-to-date return is Apple, and the other four have all had exceptional years. September returns have been spottier, but for Einhorn’s investors, it’s really only the longer-term returns that matter.

For piggybackers, any investor who invested an equal amount of money into each of Einhorn’s top picks since the start of the year is up 28.7%, beating the market by almost 11 percentage points. If you would have placed your bets on Einhorn’s top five according to portfolio weight, your return would be a little less because of Apple’s sheer size (it accounts for almost one-fifth of all equity holdings), but you’d still be up about 21% on the year.

Recommended reading:

Hedge Fund Research

What Are Hedge Funds?

The Top 10 Hedge Funds

Disclosure: none

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!