In this article, we will take a look at Billionaire David Einhorn’s 10 Stock Picks with Huge Upside Potential.
David Einhorn is a widely renowned hedge fund manager who co-founded Greenlight Capital in 1996. The billionaire graduated from Cornell University and gained experience in the hedge fund industry under the tutelage of Gary Siegler and Peter Collery at the SC Fundamental Value Fund. Einhorn rose to prominence in 2002, when he successfully questioned the accounting practices of Allied Capital, a private equity firm, and disclosed having a short position at the Sohn Investment Conference. The stock plummeted, sparking a heated exchange of claims between Allied and Einhorn. A five-year-long inquiry by the United States Securities and Exchange Commission (SEC) confirmed Einhorn’s claim, revealing that Allied did breach accounting rules related to securities laws.
Greenlight Capital focuses on value-oriented initiatives. The investment management firm’s primary concentration lies in long and short positions in listed equity securities. This strategy allows Einhorn to navigate both rising and falling markets, giving him flexibility during periods of uncertainty.
Greenlight Capital gained 8.2% in the first three months of 2025, boosted by a gold bet that it believes will pay out further as Trump administration policies continue to shake the economy. In a letter to clients, the firm stated that the precious metal was “by far the biggest winner” in their portfolio, increasing 19%. Gold is frequently used as an inflation hedge, and Greenlight believes the White House’s policies would only worsen inflation. “All current Administration policy roads lead to higher longer-term inflation.” the letter added. Greenlight reasoned that slower growth would push the US Federal Reserve to drop interest rates more than markets anticipate. As a countermeasure, the fund acquired a stake in SOFR futures (secured overnight financing rate), while also including tail protection in case the dollar falls significantly compared to the euro and yen.
Another aspect of the Greenlight letter was the assertion that the US equities market is in the early stages of a bear market. To that end, the firm was able to determine precisely when to opt out of its equity holdings. According to the firm’s letter:
“Bear markets do not go straight down. They are punctuated with ‘rip-your-face-off’ rallies based on big headlines, extreme investor sentiment, and experience that buying the dip usually pays off.”
David Einhorn of Greenlight Capital
Our Methodology
For this article, we examined Greenlight Capital’s Q4 2024 13F filings to list down billionaire David Einhorn’s stock picks with the highest upside potential. We ranked the companies in ascending order of their upside potential. These equities are also popular among elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. HP Inc. (NYSE:HPQ)
Greenlight Capital’s Q4 Stake: $130.1 million
Analyst Upside as of April 30: 32.16%
Number of Hedge Fund Holders: 48
HP Inc. (NYSE:HPQ) offers personal computing, printing, 3D printing, hybrid work, gaming systems, and other technologies. HP’s product portfolio includes high-performance laptops such as the Spectre and Envy, commercial and consumer printers, and industrial 3D printing systems.
HP Inc. (NYSE:HPQ) announced a 3.3% year-over-year revenue rise in constant currency for the first quarter of 2025, led by a 5% increase in the Personal Systems sector owing to strong commercial demand and the adoption of AI-powered PCs. However, the company’s Print revenue fell 1%, indicating strong consumer hardware performance but weaker commercial demand, especially in China.
HP Inc. (NYSE:HPQ) is actively pursuing its Future Ready transformation strategy, which has resulted in an increase in its cumulative gross run-rate savings target to $1.9 billion, up from $1.6 billion previously. The adoption of AI PCs is accelerating, evidenced by a 25% sequential growth rate in the January quarter. HP Inc. (NYSE:HPQ) estimates that AI PC shipments will account for about 25% of total PC sales by the end of fiscal year 2025, with an expected penetration rate of 40-50% by fiscal year 2027.
9. Kyndryl Holdings, Inc. (NYSE:KD)
Greenlight Capital’s Q4 Stake: $130.1 million
Analyst Upside as of April 30: 34.80%
Number of Hedge Fund Holders: 41
Kyndryl Holdings, Inc. (NYSE:KD) is a prominent provider of IT infrastructure services, focusing on the design, development, administration, and modernization of complex enterprise IT systems. Previously a part of IBM (NYSE:IBM), the company was spun off in 2021.
On March 28, Oppenheimer analysts maintained Kyndryl Holdings, Inc. (NYSE:KD)’s Outperform rating with a price target of $43. The update came after a report was issued, suggesting financial misconduct within the company. In response to the charges, Kyndryl’s management team issued a statement calling the report’s assertions false and intentionally misleading. Oppenheimer’s study supported the management’s position, finding no strong evidence, or “smoking gun,” to back up the report’s accusations.
Kyndryl Holdings, Inc. (NYSE:KD) has also signed a strategic partnership with Google Cloud to become a specialized partner for AI and Gemini models, with the goal of modernizing mainframe applications. Furthermore, the company launched a $300 million share repurchase program, reflecting its belief in its future growth prospects.
Rewey Asset Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Kyndryl Holdings, Inc. (NYSE:KD), which we highlighted in our 3Q24 letter, was our top performer in 4Q24, up 50.2%. KD held a well-received analyst day November 21st, where they reaffirmed 2025 financial guidance and set aggressive goals for 2028 margin improvement and Free Cash Flow growth. Investors also cheered the announcement of a $300 million share buyback. We see strong long-term upside in the shares and think KD could be an attractive acquisition target for a consulting or technology services company.”
