David Einhorn (hedge fund manager)
| David Einhorn | |
|---|---|
| Born | November 20, 1968 |
| Residence | Westchester, New York, U.S. |
| Nationality | United States |
| Education | B.A. Cornell University |
| Occupation | Investor, hedge fund manager, and philanthropist |
| Known for | Founding and leading Greenlight Capital |
| Salary | US$80 million (2011) |
| Net worth | US$1.53 billion (July 2017) |
| Spouse(s) | Cheryl Strauss (m. 1993; div. 2017) |
| Children | Mitch Einhorn, Rachel Einhorn & 1 other |
David M. Einhorn (born November 20, 1968) is an American investor, hedge fund manager, and philanthropist. He is the founder and president of Greenlight Capital, a "long-short value-oriented hedge fund."
Born in New Jersey, Einhorn graduated from Cornell University in 1991 and moved to Westchester, New York to start his fund. He started his fund in 1996 with $900,000 and has generated 16.5% annualized return for investors from 1996 to 2016. As of 2017, Greenlight Capital has US$9.27 billion in assets under management. He has received extensive coverage in the financial press for his fund's performance, his investing strategy and his positions.
Einhorn was ranked 44th in the Time 100 most influential list of people in the world in 2013. According to Forbes Magazine, Einhorn has a net worth of US$1.54 billion (as of February 2017), making him the 44th youngest billionaire on the Forbes 400 and the 18th highest-earning hedge fund manager in the world.
Einhorn was born to a Jewish family in New Jersey, the son of Stephen and Nancy Einhorn, The family moved to Wisconsin when he was seven. His father is the founder and president of Einhorn & Associates, a consulting firm, and Capital Midwest Fund, a venture capital fund. He has one brother Daniel who works with his father. In 1987, Einhorn graduated from Nicolet High School in Glendale, Wisconsin. Einhorn graduated summa cum laude from Cornell University with a B.A. in Government from the College of Arts and Sciences in 1991. He was a member of the Sigma Alpha Epsilon fraternity at Cornell.
Einhorn started Greenlight Capital in May 1996 with $900,000 in start up capital. In May 2002, he gave a speech at the Sohn Investment Research Conference where he recommended shorting a mid-cap financial company called Allied Capital eventually disclosing that he himself had a substantial short position. The day after the speech the company's stock went down by 20 percent. Einhorn alleged the company of defrauding the Small Business Administration while Allied said that Einhorn was engaging in market manipulation, and illegally accessed his phone records using pretexting. In June 2007, after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC), it found that Allied broke securities laws relating to the accounting and valuation of illiquid securities it held. After the incident, Einhorn has published a book, Fooling Some of the People All of the Time regarding this six-year fight. Reviews of the book were generally positive; Seeking Alpha, said of the book: "the case against Allied Capital is laid out to the last detail. Because of the immense amount of data in the book, I would imagine that some readers may want to skip a page here and there. However, the book is by no means dull. This book proves that truth is really stranger than fiction." Einhorn would come to view Allied as a microcosm of market trends: "What we've seen a year later is that Allied was the tip of an iceberg; that this kind of questionable ethic, philosophy and business practice was far more widespread than I recognized at the time...Our country, our economy, is paying a huge price for that."
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