In this article, we will discuss the 10 Best Stocks to Buy According to Billionaire David Einhorn.
David Einhorn is a highly regarded hedge fund manager, who co-founded Greenlight Capital in 1996. Einhorn shot to fame after he correctly forecasted the collapse of Lehman Brothers during the financial crisis. He graduated from Cornell University and garnered his skills in the hedge fund industry under the mentorship of Gary Siegler and Peter Collery at the SC Fundamental Value Fund. Due to his prowess in long/short equity strategies, David Einhorn is being tagged as one of the most successful hedge fund managers.
Greenlight Capital’s Investment Philosophy
Greenlight Capital specializes in value-oriented strategies. The investment management firm primarily focuses on long and short positions in the listed equity securities and selectively engages in distressed debt investments during favorable economic cycles. Einhorn is a highly-regarded hedge fund manager who uses a long-short investment strategy. Because of this strategy, he can capitalize on both rising and falling markets, providing him flexibility during uncertainties.
The Greenlight Capital funds (the Partnerships) managed to return 7.2% in 2024, net of fees and expenses, as compared to 25.0% for the broader S&P 500 index. However, since the inception of Greenlight Capital, the Partnerships returned 3,117% cumulatively or 12.9% annualized, both net of fees and expenses. Over the same period, the S&P 500 index delivered 1,421% or 10.0% annualized. Notably, Greenlight’s investors earned $5.7 billion, net of fees and expenses, since inception.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Greenlight Capital’s Views on Current Market Dynamics
CNBC, while quoting the comments of Greenlight Capital’s David Einhorn, mentioned that speculative behavior in the current bull market has reached beyond common sense. As per the firm’s Q4 2024 investor letter, the investors continue to experience a ‘Fartcoin’ stage of the market cycle. To give a brief context, Fartcoin is a cryptocurrency that came into existence late last year. Apart from trading and speculation, no other obvious purpose is being served and no need that is not being served elsewhere is being fulfilled. Einhorn went on to add that the investors might be leaving the Fartcoin stage of the market and entering the Trump (and Melania) memecoin stage. While the certainty about the possible outcome remains unpredictable, it is going to be wild, says David Einhorn.
Amidst these trends, let us now have a look at the 10 Best Stocks to Buy According to Billionaire David Einhorn.
Our Methodology
To list the 10 Best Stocks to Buy According to Billionaire David Einhorn, we selected the top 10 stocks in Greenlight Capital’s portfolio as per its Q4 2024 13F filing. We settled on the hedge fund’s 10 biggest holdings. Finally, we ranked the stocks in ascending order based on the value of Greenlight Capital’s equity stakes. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Stocks to Buy According to Billionaire David Einhorn
10. Roivant Sciences Ltd. (NASDAQ:ROIV)
Greenlight Capital’s Stake Value: $62.3 million
Number of Hedge Fund Holders: 44
Roivant Sciences Ltd. (NASDAQ:ROIV) is a commercial-stage biopharmaceutical company, which is engaged in the development and commercialization of medicines for inflammation and immunology areas. Analyst David Risinger from Leerink Partners reiterated a “Buy” rating on the company’s stock, providing a price objective of $17.00. The analyst’s rating is backed by factors demonstrating the company’s promising future. Roivant Sciences Ltd. (NASDAQ:ROIV) is anticipated to make strong progress in 2025 with the help of critical pipeline developments that can favorably impact the stock.
Elsewhere, Douglas Tsao, an analyst from H.C. Wainwright, reiterated a “Buy” rating on the company’s stock. The associated price target remained same at $18.00. The rating stemmed from factors related to the company’s strategic advancements and promising opportunities. Roivant Sciences Ltd. (NASDAQ:ROIV) has broadened its clinical pipeline with the newly announced trial of brepocitinib in cutaneous sarcoidosis (CS). As with dermatomyositis and non-infectious uveitis, brepocitinib can be the first-in-class agent for CS and expands the treatment options for patients suffering from an indication with high unmet need.
Tourlite Capital Management, an investment management firm, released a Q4 2024 investor letter. Here is what the fund said:
“We continue to believe Roivant Sciences Ltd. (NASDAQ:ROIV) offers an attractive risk reward and multiple ways to win. Excluding Roivant’s cash balance and Immunovant (IMVT) stake, the remainder of Roivant (ROIV stub) is valued at less than $2 per share. We believe Roivant’s stake in Arbutus and its exposure to the LNP litigation could alone be worth up to $4. In addition to ROIV, we remain shareholders in Arbutus.”
9. HP Inc. (NYSE:HPQ)
Greenlight Capital’s Stake Value: $68.8 million
Number of Hedge Fund Holders: 48
HP Inc. (NYSE:HPQ) offers personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies. In the broader PC market, critical trends like remote work, gaming, and the requirement for more powerful computing solutions for AI and data analysis can fuel demand for high-performance devices. The company has announced a definitive agreement to acquire key AI capabilities from Humane, which includes their AI-powered platform Cosmos, highly skilled technical talent, and intellectual property with over 300 patents and patent applications. Notably, the acquisition strengthens HP Inc. (NYSE:HPQ)’s transformation into a more experience-led company.
This investment is expected to rapidly accelerate HP Inc. (NYSE:HPQ)’s ability to develop a new generation of devices that orchestrate AI requests both locally and in the cloud. Humane’s AI platform Cosmos can help the company create an intelligent ecosystem throughout all the HP devices from AI PCs to smart printers and connected conference rooms. The company remains focused on the future of work, demonstrating opportunities in AI and premium product categories. Its Personal Systems segment is expected to outpace market growth, fueled by innovation in AI PCs and premium categories. HP Inc. (NYSE:HPQ) has made significant progress in establishing a globally diverse supply chain, and by FY 2025 end, it anticipates that over 90% of HP products sold in North America will be built outside of China.
8. Viatris Inc. (NASDAQ:VTRS)
Greenlight Capital’s Stake Value: $72.02 million
Number of Hedge Fund Holders: 48
Viatris Inc. (NASDAQ:VTRS) operates as a healthcare company. The company’s focus on business development and pipeline expansion can be a strong catalyst for future growth. The successful business development initiatives can result in a more diversified and robust product pipeline, reducing its reliance on any single product or market. This can help mitigate risks related to patent expirations or market-specific challenges, offering a more stable foundation for long-term growth. As Viatris Inc. (NASDAQ:VTRS) progresses into 2025, it remains focused on fueling healthy commercial execution and advancing its pipeline—such as numerous important late-stage development milestones for selatogrel, cenerimod and sotagliflozin and six Phase 3 readouts.
Viatris Inc. (NASDAQ:VTRS) is emphasizing the execution of the 2025 operating plan and identifying the opportunities to grow business and streamline global infrastructure post-divestitures. Apart from the new product launches, the company targets accretive regional business development opportunities that leverage the global infrastructure. With respect to commercial priorities, the company remains focused on driving successful complex injectables launches in the US market and developing global commercialization strategies for innovative pipeline assets. Viatris Inc. (NASDAQ:VTRS) plans to execute 150+ new generic launches globally and strengthen innovative commercialization capabilities throughout key markets.
