When David Einhorn Talks, Markets Listen—Usually

One notable exception is when the hedge fund manager happens to be talking about Apple
Photograph by Meigneux/SIPA

It was shaping up as an especially good episode of The David Einhorn Show. The founder of the $8.8 billion hedge fund Greenlight Capital was speaking in May 2012 at his favorite venue, the Ira W. Sohn Investment Research Conference, held that year at New York’s Lincoln Center, to a packed audience of money managers eager to hear which stocks were in his cross hairs. Thin, mild, diligent, and looking, at 44, like he could still get carded for beer, Einhorn is renowned for his fearlessness. Not simply for the boldness of his calls, but his embrace of the dull and unglamorous work that others simply won’t do. Since launching his fund in 1996, he has been right so often and, occasionally, against such high odds, that his public positions are the closest thing in finance to self-fulfilling prophecies. When he names a target out loud, in his nasal, Wisconsin-tinged voice, it’s like jolting the company with a cattle prod.

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