13 New Stocks David Einhorn May Soon Be Buying

|
 |  Includes: AON, APC, CBD, CF, CFN, CHS, CIT, ESV, EXPE, HPQ, HSH, LMCA, MRO, NCR, QVCA, VMED, WCG, XRX
by: Insider Monkey

In 2005 Third Point’s Daniel Loeb got upset about Ken Griffin’s poaching key employees from New York hedge funds. Loeb sent this letter to Ken Griffin. The equity analyst Ken Griffin poached from Greenlight Capital was Andrew Rechtschaffen. He didn’t stay with Ken Griffin too long and launched his hedge fund, Obrem Capital. Rechtschaffen recently closed his fund and started working at Greenlight Capital again.

Now that he joined Greenlight, he might buy some of his old favorites for Greenlight. Here are his top 15 positions before he liquidated all his positions:

Company

Ticker

Value (x1000)

Greenlight's Position (x1000)

WELLCARE HEALTH PLANS INC

WCG

7,399

-

NCR CORP NEW

NCR

7,141

176,273

ENSCO PLC

ESV

6,647

481,039

COMPANHIA BRASILEIRA DE DIST

CBD

6,529

-

XEROX CORP

XRX

6,033

155,520

CIT GROUP INC

CIT

6,025

345,615

AON CORP

AON

5,222

-

CAREFUSION CORP

CFN

4,484

343,731

LIBERTY MEDIA CORP NEW

LINTA

4,474

-

VIRGIN MEDIA INC

VMED

4,071

-

ANADARKO PETE CORP

APC

3,842

-

CHICOS FAS INC

CHS

3,413

-

LIBERTY MEDIA CORP NEW

LSTZA

3,357

-

HEWLETT PACKARD CO

HPQ

2,739

-

CF INDS HLDGS INC

CF

2,626

-

Click to enlarge

Great minds think alike (or they exchange investment ideas). Greenlight Capital already has NCR, ESV, XRX, CIT, and CFN in its portfolio (See Greenlight's largest holdings here). We believe the other 10 stocks are more likely to be acquired by Greenlight Capital in the following weeks. Rechtschaffen likes to invest in spinoffs as well. He had MDS Inc and Motorola (NYSE:MSI) in his portfolio at the end of September. It is also likely that Greenlight might be investing in Expedia (NASDAQ:EXPE), Marathon Oil (NYSE:MRO), and Sara Lee (SLE) which recently announced that they are planning to spinoff some of their subsidiaries. Larry Robbins is also very bullish about Expedia.

Greenlight Capital didn’t have a spectacular first quarter this year. We believe the recent increase in gold prices and the addition of Rechtschaffen will start a new uptrend.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in EXPE over the next 72 hours.