David Einhorn founded Greenlight Capital with $1 million in 1996. As a long-short value-oriented hedge fund, Greenlight has historically generated more than a 22% annualized net return for its partners and investors. Einhorn has a BA from Cornell University, where he graduated summa cum laude with distinction in all subjects.
We like Einhom and we believe that by imitating Einhorn’s stock picks, investors are more likely to beat the market. Additionally, we encourage investors to play defensively as we are concerned about the Fed’s inflationary monetary policy.
Below, we compiled a list of seven defensive stocks in Einhorn’s recent portfolio. All companies have Total Debt / Equity ratio of below 0.9 and beta of lower than 1. The market data is sourced from Finviz.
Aspen Insurance Holdings Ltd. (AHL): Aspen operates in the insurance and reinsurance business. Einhorn had $107 million AHL at the end of June. AHL has a total debt to equity ratio of 0.16 and a beta of 0.65. It has a market cap of $1.66B, a P/E ratio of 584.5, and lost 16.94% since the beginning of this year. David Dreman had $33 million invested in AHL.
Becton, Dickinson and Company (BDX): Becton, Dickinson and Company is a global medical technology company. Einhorn had $201 million BDX at the end of June. BDX has a total debt to equity ratio of 0.51 and a beta of 0.58. It has a market cap of $15.7B, a P/E ratio of 13.2, and lost 13.09% since the beginning of this year. David Blood, Miguel Nogales and Al Gore also invested over $200 million in BDX.
Broadridge Financial Solutions Inc. (BR): Broadridge is a global provider of technology solutions to the financial services industry. Einhorn had $63.8 million invested in BR at the end of June. BR has a total debt to equity ratio of 0.66 and a beta of 0.72. It has a market cap of $2.46B, a P/E ratio of 14.73, and lost 7.36% since the beginning of this year. Leon Cooperman invested nearly $100 million in BR stocks.
CVS Caremark Corporation (CVS): CVS Caremark is a pharmacy healthcare provider in the United States. Einhorn had $123 million CVS at the end of June. CVS has a total debt to equity ratio of 0.29 and a beta of 0.79. It has a market cap of $44.4B, a P/E ratio of 13.36, and lost 4.10% since the beginning of this year. Jonathon Jacobson and Ralph Whitworth both invested over $700 million in CVS.
Employers Holdings, Inc. (EIG): Employers Holdings is a provider of workers' compensation insurance focused on select small businesses engaged in low to medium hazard industries. Einhorn decreased his position in EIG by 58% over the second quarter but he still had $16.4 million invested in the stock. EIG has a total debt to equity ratio of 0.26 and a beta of 0.96. It has a market cap of $499 million, a P/E ratio of 11.17, and lost 23.73% since the beginning of this year. Jim Simons had $2.1 million invested in this $499 million market cap stock.
Pfizer Inc. (PFE): Pfizer is a research-based, global biopharmaceutical company. Einhorn slightly decreased his position in PFE by 6% to 483 million during the second quarter. PFE has a total debt to equity ratio of 0.47 and a beta of 0.7. It has a market cap of $137B, a P/E ratio of 16.44, and gained 3.65% since the beginning of this year. Ken Fisher also had over $400 million invested in PFE stocks (see billionaire Ken Fisher’s top stock picks).
The Travelers Companies, Inc. (TRV): TRV provides a range of commercial and personal property and casualty insurance products and services. Einhorn had $245 million TRV at the end of June. TRV has a total debt to equity ratio of 0.26 and a beta of 0.63. It has a market cap of $20.1B, a P/E ratio of 9.41, and lost 11.83% since the beginning of this year. Ric Dillon also had around $200 million of TRV shares.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.