David Einhorn of Greenlight Capital manages a 13F portfolio that was worth more than $2.8 billion at the end of the fourth quarter of 2025. Einhorn is a long-short value investor renowned for his forensic approach to financial analysis. Since launching his firm in 1996, he has specialized in identifying deep-value opportunities while simultaneously executing high-profile short positions against companies with questionable accounting or flawed business models. Einhorn gained legendary status for his prescient 2008 short call on Lehman Brothers. In his latest investor letter, Einhorn has signaled a pivot toward extreme caution, prioritizing “capital preservation” despite a surging stock market. While the S&P 500 has staged a rebound to erase losses since the onset of the US-Iran conflict, Einhorn warned that market participants are dangerously complacent regarding geopolitical and macroeconomic risks.
READ MORE: 15 Best Stocks to Buy According to Billionaire Ray Dalio.
In the letter, Einhorn criticized the current investment climate, suggesting that even those who claim to be wary are not truly de-risking. He observed that investors are operating with a “Sammy Hagar inspired mentality: one foot on the brake and one on the gas.” According to Einhorn, this behavior stems from a fear of being left behind, as “nobody wants to miss the V- or even the checkmark-shaped recovery.” This optimism persists even though recent diplomatic efforts have faltered. While the market rallied on the hope of a breakthrough, Einhorn remains skeptical of the current valuations, noting that there is “so little downside priced in” to current equity levels. Despite his defensive posture, Greenlight Capital outperformed the broader market in the first quarter of 2026.
READ MORE: 10 Best Stocks to Buy According to Billionaire Paul Tudor Jones.
Our Methodology
To compile our list of the best stocks to buy according to billionaire David Einhorn, we reviewed the latest 13F filings of Greenlight Capital. Next, we focused on the top 10 stocks in his portfolio. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
David Einhorn Stock Portfolio: Top Stock Picks
10. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Greenlight Capital’s Stake: $95 Million
Teva Pharmaceutical Industries Limited (NYSE:TEVA) has featured in the 13F portfolio of Greenlight Capital since the fourth quarter of 2023. Back then, this position comprised 268,000 shares. In the coming quarters, the fund steadily loaded up on the stock, increasing the stake by 21%, 44%, and 21%. A massive buying activity was registered in the second quarter of 2025 when the fund increased this holding by more than 550%. Filings for the fourth quarter of 2025 show that the fund owns just over 3 million shares in the pharma firm, down close to 20% compared to filings for the third quarter of 2025.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) has been on the radar of elite hedge funds as the firm makes a strategic shift toward innovative, high-margin brand drugs. The best example of this is AUSTEDO, a treatment for tardive dyskinesia whose sales grew significantly in 2025 and are projected to hit $2.5 billion by 2027. Another catalyst for the shares is that in the fourth quarter of 2025, for the first time, Teva’s innovative brands – AUSTEDO, AJOVY, and UZEDY – collectively delivered over $1 billion in a single quarter. Pipeline drugs look promising as well. Teva is developing a potential blockbuster for inflammatory bowel disease. Recent data positions it as a best-in-class therapy. Institutional interest peaked after a $400 million funding agreement with Blackstone to accelerate its development.
9. Kyndryl Holdings, Inc. (NYSE:KD)
Greenlight Capital’s Stake: $101 Million
Kyndryl Holdings, Inc. (NYSE:KD) has constantly featured in the 13F portfolio of Greenlight Capital since the fourth quarter of 2021. Back then, this position comprised 922,000 shares. The fund steadily built up this stake. By the fourth quarter of 2024, this holding had reached over 9 million shares. Thereafter, the fund started trimming the position, reducing it by 5% and 47% in the next two quarters. Filings for the fourth quarter of 2025 show that the fund owned 3.8 million shares in the company, down a little over 12% compared to filings for the previous quarter.
Kyndryl Holdings, Inc. (NYSE:KD) is attracting interest from elite investors who are betting on the ability of the firm to shed low-margin legacy contracts inherited from its IBM spinoff. Since becoming independent, Kyndryl has been replacing no-profit legacy deals with high-margin consulting work. This mix shift has allowed profits to grow even as overall revenue stays relatively flat. Institutions also view Kyndryl as an affordable AI play. Unlike hardware-heavy tech firms, Kyndryl’s value lies in its Kyndryl Bridge platform and Kyndryl Consult arm. Earlier this month, the company launched an AI-native platform designed for autonomous IT workflows. The firm has signed strategic partnerships with Google Cloud, Microsoft Azure, and AWS to modernize mainframes and move legacy systems to the cloud.
8. Centene Corporation (NYSE:CNC)
Greenlight Capital’s Stake: $109 Million
Centene Corporation (NYSE:CNC) first appeared in the 13F portfolio of Greenlight Capital in the first quarter of 2020. This holding comprised 204,000 shares and was sold off within the next few months. A new position was then opened in the fourth quarter of 2024 that consisted of more than 870,000 shares. After trimming this stake in the first quarter of 2025, David Einhorn has added to it in each of the last three quarters. Filings for the fourth quarter of 2025 show that the fund owned more than 2.6 million shares in the company, up close to 70% compared to filings for the third quarter of 2025.
Centene Corporation (NYSE:CNC) stock took a beating in 2025 and hedge funds view this as a buying opportunity given the earnings potential of the firm. For example, Centene has guided for 40% growth in adjusted EPS for 2026, targeting over $3 per share. Institutional investors expect a coiled spring effect where Medicaid and ACA Marketplace rates—which lagged during the inflation of 2025—will realign with cost trends in 2026, restoring historical profit margins. Hedge funds also favor management’s value-over-volume approach. CEO Sarah London has aggressively moved to divest non-core assets to simplify the business. The recent deal to sell off the remaining Magellan Health businesses is seen as a major step in cleaning up the balance sheet and focusing on the core government-sponsored healthcare segments.
7. Capri Holdings Limited (NYSE:CPRI)
Greenlight Capital’s Stake: $116 Million
Capri Holdings Limited (NYSE:CPRI) has been a constant feature in the 13F portfolio of Greenlight Capital since the first quarter of 2021, barring a few exceptions in late 2023 and early 2024. Back then, this position comprised just under 200,000 shares. The fund steadily added to this position and grew it to more than 1.6 million shares by the second quarter of 2023 before selling off the position completely. A new stake in the firm was purchased in the second quarter of 2024. This consisted of 684,000 shares. The fund has added to this in four of the next six quarters. Filings for the fourth quarter of 2025 show that the fund owned 4.7 million shares in the company, up 77% compared to filings for the previous quarter.
A major catalyst for institutional interest in Capri Holdings Limited (NYSE:CPRI) stock in recent months has been the completion of the Versace sale in December 2025. The proceeds from the Versace sale allowed Capri to drastically reduce its net debt, estimated at $1.5 billion post-sale. Hedge funds favor this leaner profile, which gives the company more flexibility to weather the current luxury slowdown. Management is now fully focused on a brand health transformation for its remaining core brands. Jimmy Choo, in particular, has shown resilience with 5% sales growth in early 2026, driven by strong full-price sell-through.
6. PG&E Corporation (NYSE:PCG)
Greenlight Capital’s Stake: $125 Million
PG&E Corporation (NYSE:PCG) is a relatively recent addition to the 13F portfolio of Greenlight Capital. The fund first disclosed a stake in the company in the third quarter of 2025. This position comprised close to 6.4 million shares. Filings for the fourth quarter of 2025 show that the fund owned 7.8 million shares in the firm, up more than 21% compared to filings for the previous quarter. The firm engages in the sale and delivery of electricity and natural gas to customers in northern and central California, the United States. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cells, and photovoltaic sources.
Elite investors like PG&E Corporation (NYSE:PCG) stock as the firm reported solid 2025 results with EPS of $1.50, up from $1.36 in 2024. For 2026, management recently tightened guidance to $1.64–$1.66, implying a 10% year-over-year growth rate—well above the utility sector average. The company is also executing a $73 billion capital investment plan for 2026–2030. Institutional analysts have argued that this plan supports sustained 9% annual earnings growth through 2028. A new 2026 theme for utility investors is the surge in power demand from AI data centers. PG&E’s service territory in Northern California, including Silicon Valley, is the epicenter of the AI boom.
While we acknowledge the potential of PCG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PCG and that has 100x upside potential, check out our report about the cheapest AI stock.
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