David Einhorn net worth: David M. Einhorn is an American investor and hedge fund manager who has a net worth of $1.2 billion. He is the founder and president of Greenlight Capital, a “long-short value-oriented hedge fund”.
David M. Einhorn was born on November 20, 1968 in New Jersey, Einhorn graduated from Cornell University, before starting Greenlight Capital in 1996. Over the next decade, the fund experienced annualized returns of 26%, far better than the market. Greenlight Capital’s assets under management decreased from approximately US$12 billion in 2014 to about $5.5 billion as reported in July 2018 as the fund was down 11.3% from 2014 through the end of 2017, and a further 34% in 2018. He has received extensive coverage in the financial press for his fund’s performance, his investing strategy and his positions.
Einhorn was included in Time magazine’s Time 100 list of “100 most influential people in the world” in 2013. According to Forbes Magazine, Einhorn has a net worth of US$700 million (as of March 2019), after several years of steep losses for his fund.
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Einhorn was born to a Jewish family in New Jersey, the son of Stephen and Nancy Einhorn. Raised in Demarest, New Jersey, at seven he and his family moved to Wisconsin. 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.”
In 1993, Einhorn married Cheryl Strauss, a financial reporter and media consultant; they divorced in 2017. He has three children with Cheryl. Einhorn lives in Westchester County, New York.
David Einhorn is Democrat, and has contributed to Democratic political campaigns, in contrast to his parents, who are Republican donors. In 2012, Einhorn co-hosted a fundraiser for the Keeping America Competitive PAC, led by moderate Republican Leonard M. Tannenbaum. He is reported to drive a Honda Odyssey.
He is also a founding Master Player of the Portfolios with Purpose virtual stock trading contest.
David Einhorn net worth
As of March 2022, Forbes Magazine reported Einhorn to have an overall net worth of over US$1.2 billion. Einhorn is a major contributor and board member of The Michael J. Fox Foundation. In 2006, Einhorn finished 18th in the World Series of Poker main event and donated his winnings (over $650,000) to the foundation. He is also on the board of the Robin Hood Foundation and a contributor to numerous charities in the New York area. In the Spring of 2009, as promised in his book Fooling Some of the People All of the Time, Greenlight Capital donated all of the general partner’s profits from the shorting of Allied Capital stock (an additional $6 million – Greenlight already donated $1 million in 2005 to Tomorrows Children’s Fund – to make a total of $7 million) to three organizations (Tomorrows Children’s Fund, The Project On Government Oversight (POGO) and the Center for Public Integrity (CPI)). In 2012, Einhorn donated his winnings from the 2012 World Series of Poker Big One for One Drop Tournament (which had a one million dollar buy in, and in which he won $4,352,000 for his 3rd-place finish) to City Year.