Long-Term Returns of David Einhorn’s 5 Activist Targets

4. CNX Resources Corporation (NYSE:CNX) 

Activist Investment: 2014
Long Term Returns: -75%
S&P 500 Average Gain: 24%

CNX Resources Corporation (NYSE:CNX) is engaged in the management and development of coal operations of CONSOL Energy in Pennsylvania. The company shot to the limelight in 2014 when activist investor David Einhorn acquired stakes in the company, believing it was highly undervalued.

As an activist investor, Einhorn believed it was the right call to spin off CNX Resources Corporation (NYSE:CNX)’s coal business into a separate entity as one of the ways of unlocking value. However, the investment would go bad as the coal industry faced multiple challenges, such as environmental rules, falling demand, low prices, and competition from natural gas and other green energy sources.

CNX Resources Corporation (NYSE:CNX)’s stock fell from $40 in 2014 to less than $10 a share in 2016, resulting in CNX Coal Resources trading below its IPO price of $15 a share. In 2021, the activist investor reduced his stake in the company after the coal miner slumped by 50%.