David Einhorn’s favorite hedge fund managers are Howard Marks and Bruce Karsh. Greenlight Capital filed a 13G on Monday, disclosing a 1.68 million share position in Howard Marks’ Oaktree Capital (OAK). Einhorn’s $70 million investment in the company gives him a 5.5% stake in Oaktree Capital.
Oaktree Capital sold nearly 9 million shares at $43 on April 12 and started to decline for the next two weeks. Einhorn probably decided to build a large position in OAK after seeing a lower than expected IPO price and the subsequent decline in the stock. Currently Oaktree is trading at $41.7. Investors can buy the shares at a 3% discount to its IPO price and join David Einhorn.