David Einhorn
Greenlight Capital Founder and Legendary Short Seller
David Einhorn
Value Investing
Key Stats
Net Worth
$600 Million
Origin
American
Lifespan
Born 1968 (58 years old)
Biography
David Einhorn is the founder and president of Greenlight Capital, a long-short value-oriented hedge fund. He is known for his detailed research, his willingness to take controversial positions, and his famous short of Lehman Brothers before its collapse.
Greenlight Capital
Einhorn founded Greenlight Capital in 1996 with $900,000. The fund grew to manage over $12 billion at its peak, generating annualized returns of approximately 16% through 2018.
Lehman Brothers Short
Einhorn's most famous trade was his short position in Lehman Brothers, which he publicly criticized in 2008 for accounting irregularities. When Lehman collapsed, Greenlight profited enormously, and Einhorn's reputation as a forensic analyst was cemented.
Allied Capital
Before Lehman, Einhorn waged a years-long battle against Allied Capital, a business development company he accused of fraud. His book "Fooling Some of the People All of the Time" chronicles this fight.
Poker Player
Einhorn is also an accomplished poker player, finishing 18th in the 2006 World Series of Poker Main Event and donating his $659,730 winnings to charity.
Trading Philosophy
"The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system."
Famous Trades
Lehman Brothers
Publicly shorted Lehman Brothers months before its collapse, citing accounting concerns.
Major Profit
Exceptional
Legendary Quotes
"The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system."
"Sometimes the market gives you lemons. The key is to make lemonade."
Recommended Reading
Fooling Some of the People All of the Time
A long short story about Allied Capital