Founder of Greenlight Capital who called the collapse of Lehman Brothers — a value-driven long/short hedge fund manager.
Life story
David Einhorn was born in 1968 in New Jersey to a Jewish family; his parents are Stephen and Nancy Einhorn. The family moved to Wisconsin when he was seven, and he graduated from Nicolet High School in Glendale.
In 1991 he graduated summa cum laude from Cornell University with a degree in government.
How they got started
After a few years working in finance, he launched Greenlight Capital in May 1996 with just $900,000. In its first decade the fund returned roughly 26% a year — far ahead of the market.
Einhorn became known for his public presentations. At the 2002 Sohn Investment Conference he recommended shorting Allied Capital, and the stock fell 20% the next day; he later wrote "Fooling Some of the People All of the Time" about that fight. From July 2007 he shorted Lehman Brothers, criticising how it accounted for its real-estate exposure — Lehman filed for bankruptcy in September 2008. In 2011 his short call on Green Mountain Coffee sent the stock down 10% in a day.
Time named him one of the 100 most influential people in 2013. He is also a well-known poker player: he finished third in the 2012 "Big One for One Drop" and gave his $4.35 million prize to charity.
Investment style
Einhorn is a long/short value investor: he buys companies he considers cheap and bets against those he sees as overvalued or with questionable accounting. He is willing to present his research publicly and also takes macro positions.
His results don't depend on stock picking alone: in 2025, for example, most of the fund's alpha (return independent of market moves) came from macro positions while the long/short book lagged (according to the fund's letter).
Best decisions
Against Lehman Brothers (2007–2008)
Einhorn publicly questioned Lehman's accounting and shorted the stock; the bank's September 2008 bankruptcy fully vindicated his analysis.
The Allied Capital analysis (2002)
His call on Allied Capital knocked the stock down 20% in a day, and the long campaign that followed became an example of patient, detailed research.
Long-term record (1996–2025)
By the end of 2025 Greenlight had returned 3,406% cumulatively (about 12.7% a year) versus about 10.2% a year for the S&P 500, net of fees, according to its investor letter.
Biggest mistakes
The difficult years (2014–2018)
The fund lost 11.3% in total over 2014–2017 and another 34% in 2018. Assets under management shrank from about $12 billion (2014) to about $5.5 billion (July 2018).
Lagging the market (2024–2025)
Greenlight returned 7.2% in 2024 and 9.0% in 2025, while the S&P 500 gained 25.0% and 17.9% — value and short positions trailed in a growth-led market.
Today
At 57 in 2026, Einhorn continues to run Greenlight Capital. The fund's 13F filings are now made under DME Capital Management, LP (SEC filings list the Greenlight Capital and DME entities as one group).
In his Q4 2025 letter he voiced concern about growing government intervention in the economy and noted that most of the year's alpha came from macro positions.
What to learn from following the portfolio
- A 13F shows only long positions — the shorts and macro bets that are a key half of Einhorn's strategy don't appear, so the portfolio is not his full view.
- He often concentrates in cheap names with large stakes — a big new position or an increase points to his strongest ideas; reading it alongside his investor letters and conference talks helps.
- 13Fs are up to 45 days late; copying is not a strategy.
- From a halal perspective: Einhorn frequently owns insurers, financials and leveraged companies, which usually fail halal screening. Check each position's halal status in the Portfolio tab.
An introduction based on public sources — not investment advice. Spotted an error? Let us know.