When David Einhorn sued Apple on Thursday, it was a rare rebuke by a hedge fund manager against the world’s most valuable company.
Of course, Mr. Einhorn, the president of Greenlight Capital, has built a career on publicly challenging big companies, even when those moves are unpopular. Beginning with a bet against Allied Capital in 2002, Mr. Einhorn has attracted a cult following on Wall Street, with pronouncements that can move stock prices.
Mr. Einhorn’s legal challenge to Apple, an effort to prevent the company from eliminating preferred shares, is the latest skirmish by the hedge fund manager. Below is a look back at some of his most memorable calls.
2012: Chipotle | Mr. Einhorn announced a bet against Chipotle Mexican Grill at a conference in October, and the share price of the fast-food chain promptl fell. With a slide presentation, the investor argued that the business was vulnerable to competition, especially from the likes of Taco Bell. But the company’s shares recovered and have been on a gradual path upward.
2011: General Motors | Shares of General Motors fell after the company’s initial public offering in 2010, and to Mr. Einhorn that was an opportunity to buy. Noting that investors were reluctant to own a company that was still partially owned by the government, Mr. Einhorn said G.M. was in better shape after its restructuring and was undervalued by the market. The investment mitigated Greenlight’s disappointing performance in the fourth quarter of 2012.
2011: Green Mountain Coffee Roasters | Its stock had been a darling of Wall Street, rising thirtyfold over five years. But Green Mountain came under pressure in October, when Mr. Einhorn questioned the company’s accounting in a closely watched slide presentation. The shares fell sharply, seeming to affirm Mr. Einhorn’s power. But the stock price began to recover near the end of 2012, following a robust earnings report, and it contributed to a quarterly loss for Mr. Einhorn’s hedge fund.
2011: The New York Mets | Though he grew up a Milwaukee Brewers fan, Mr. Einhorn turned his attention to the New York Mets, entering negotiations to buy a $200 million stake in the baseball team. Deep in debt and losing money, the team was also fighting a legal battle stemming from the collapse of Bernar L. Madoff‘s Ponzi scheme. In the end, the talks fell apart when the parties couldn’t agree on terms.
2008: Lehman Brothers |Mr. Einhorn began betting against Lehman Brothers in 2007, before the rest of the financial world recognized the investment bank’s troubles. He announced his bet in May of 2008, at a conference attended by big investors, and entered into a public battle with the investment bank. Lehman went bust that fall.
2002: Allied Capital | Mr. Einhorn rose to prominence after announcing a bet against Allied Capital in May. He argued that the company! was over! valuing its assets, a claim that executives vehemently denied. The fight dragged on for years, and Mr. Einhorn was even questioned by the Securities and Exchange Commission. He was ultimately victorious, when the S.E.C. found in 2007 that Allied had violated securities laws. The stock later lost much of its value, and in 2009 Allied agreed to sell itself to Ares Capital.
