David Einhorn grew up in Milwaukee and graduated from Cornell University. He learned the hedge fund business from Gary Siegler and Peter Collery, who managed the SC Fundamental Value Fund. Einhorn is one of the most successful long/short equity hedge fund managers of the past decade. Einhorn's Greenlight Capital returned 15.9% in 2010, and around 21% since its inception in 1996. Greenlight Capital's market beta is around 0.5, meaning if it didn't have any stock picking skill, it would have returned about half of the market's return.
Here are David Einhorn’s top 10 holdings as of the end of June 2011.
1. Pfizer Inc (NYSE:PFE) was Einhorn’ biggest investment at the end of June 2011. Pfizer Inc is one of the major drug manufacturers. PFE recently traded at $17.45 and has a 4.58% dividend yield. PFE gained 4.55% during the past 12 months. The stock has a market cap of $136.1 billion and P/E ratio of 16.31. Einhorn had $483 million invested in PFE shares. Ken Fisher also had over $400 million invested in PFE shares (see Ken Fisher’s stock picks).
2. Microsoft Corp (NASDAQ:MSFT) is one of the leading technology companies dealing with application software. MSFT recently traded at $25.06 and has a 2.55% dividend yield. MSFT gained 3.68% during the past 12 months. The stock has a market cap of $210 billion and P/E ratio of 9.28. Einhorn had $385 million invested in MSFT shares. This year at the Ira Sohn Investment Conference, Einhorn gave a lengthy speech and explained why he is bullish on Microsoft (read his entire speech here).
3. Apple Inc (NASDAQ:AAPL) is one of the leading technology companies dealing with personal computers. AAPL recently traded at $404.3 and gained 38.31% during the past 12 months. The stock has a market cap of $374.8 billion and P/E ratio of 16.01. Einhorn had $362 million invested in AAPL shares. Jim Simons' Renaissance Technologies increased its position in AAPL last quarter by 136%.
4. Sprint Nextel Corp (NYSE:S) is a technology company dealing with wireless communication. S recently traded at $3.18 and lost 28.38% during the past 12 months. The stock has a market cap of $9.5 billion. Einhorn had $301 million invested in S shares. Michael Karsch’s Karsch Capital Management added Sprint to its portfolio in the second quarter.
5. Carefusion Corp (NYSE:CFN) provides medical instruments and supplies. CFN recently traded at $23.39. CFN lost 6.25% during the past 12 months. The stock has a market cap of $5.2 billion and P/E ratio of 18.13. Einhorn had $259 million invested in CFN shares. CEO Kieran Gallahue said that, around the world, countries are trying to reduce healthcare costs, and this is something the company helps them to do. Jim Cramer also recommends getting in on this stock now, because he feels it’s one that will be heavily talked about in the coming years.
6. The Travelers Companies, Inc. (NYSE:TRV) is one of the leading companies in the financial sector dealing with property and casualty insurance. TRV recently traded at $47.12 and has a 3.48% dividend yield. TRV lost 8.79% during the past 12 months. The stock has a market cap of $19.7 billion and P/E ratio of 9.2. Einhorn had $245 million invested in TRV shares. George Soros of Soros Fund Management reduced his position by 23% (see billionaire Soros’ other positions).
7. ENSCO Plc (NYSE:ESV) provides oil and gas drilling and exploration. ESV recently traded at $43.1 and has a 3.25% dividend yield. ESV lost 2.33% during the past 12 months. The stock has a market cap of $9.9 billion and P/E ratio of 15.02. Einhorn had $225 million invested in ESV shares.
8. Best Buy Co. Inc. (NYSE:BBY) provides electronic stores. BBY recently traded at $24.18 and has a 2.65% dividend yield. BBY lost 37.84% during the past 12 months. The stock has a market cap of $9 billion and P/E ratio of 8.17. Einhorn holds $216 million BBY, and he recently increased his position by 15%. Bill Miller is another main holder of BBY (check out Miller’s top stock picks).
9. Becton, Dickinson and Company (NYSE:BDX) provides medical instruments and supplies. BDX recently traded at $73.74 and has a 2.22% dividend yield. BDX gained 1.31% during the past 12 months. The stock has a market cap of $16 billion and P/E ratio of 13.46. Einhorn had $201 million invested in BDX shares.
10. Seagate Technology (NASDAQ:STX) provides data storage devices. STX recently traded at $10.75 and has a 6.7% dividend yield. STX lost 5.29% during the past 12 months. The stock has a market cap of $4.5 billion and P/E ratio of 9.86. Einhorn had $186 million invested in STX shares. The largest stakeholder of the company among the 300+ hedge funds we are tracking is Andreas Halvorsen; he invested $323.7 million in Seagate during the second quarter.
Disclosure: I am long MSFT.