Einhorn Says Value Investing Will See Comeback

Value investing is in the doldrums, but billionaire fund manager David Einhorn says that eventually things will turn around. This according to a recent CNBC interview. Einhorn argues that the last time value saw a turnaround– after the dot-com bubble in 1999 when, he said, “everyone was talking about eyeballs as the new paradigm for investing”—it ended badly for momentum investors. He believes that value investing will rebound: “When it reverts,” he adds, “it tends to revert pretty sharply.” Pointing out that the companies owned by his hedge fund Greenlight Capital (which focuses on value strategies) are generally profitable, Einhorn expresses […]

Hedge Fund Heavy Hitters Offer Range of Outlooks & Predictions

As the hedge fund industry continues to struggle to justify high fees and awful returns, some of this year’s speakers at the Sohn Investment Conference addressed how the largest funds are bracing for what’s ahead. The conference, an event held annually in New York and touted as “the premier investment event”, brings together Wall Street’s elite to exchange ideas and share insights (while raising money for pediatric cancer research). Forbe’s offered an overview of the conference with some takeaways from speakers including Stanley Druckenmiller, David Einhorn (Greenlight Capital), Zachary Schreiber (PointState Capital), Jeffrey Gundlach (Doubleline Capital), and Larry Robbins (Glenview […]

How Einhorn Does It

David Einhorn has become one of the most closely followed hedge fund managers in the world. And in a recent interview with Bloomberg, Columbia Business School Professor Fabio Savoldelli examines what makes Einhorn so successful. Savoldelli says Einhorn (who he says has produced 20% compound annualized returns since 1996) has an “incredibly disciplined” process. He does not act in an index-relative manner as many managers do, but instead analyzes every position as to whether it will make him money. Savoldelli says Einhorn examines the economics of a business, and wants to see that earnings are consistent with those economics; that management is […]

Einhorn Says Fed Should Raise Rates

Hedge fund guru David Einhorn says the Federal Reserve’s near-zero interest rate policy is counterproductive, and says it should raise rates to help the economy. Einhorn tells CNBC that low rates “deprives savers of reasonable incomes”, and cuts down on consumption. He also says it drives food and oil prices upward and decreases standards of living. He thinks the Fed should begin to raise rates to the 2% to 3% range. Einhorn also discusses some of the stocks he’s high on, including Apple.