Long-Term Returns of David Einhorn’s 5 Activist Targets

1. General Motors Company (NYSE:GM)

Activist Investment: 2015
Long Term Returns:  84%
S&P 500 Average Gain: 190%

General Motors Company (NYSE:GM) is a company that designs, builds, and sells trucks, crossovers, cars, and automobile parts. It also provides software-enabled services and subscriptions worldwide. Einhorn’s Greenlight Capital took a new stake in the automaker in 2015, a year after selling off its position in the company.

Following the acquisition, the activist investor started pushing for the creation of two classes of stock and accused the company of misleading credit rating agencies about the plan. The famed short seller investor cranked up the pressure in 2017 on launching a website that encouraged shareholders to vote for the fund’s proposal. The push came after General Motors Company (NYSE:GM) rejected the hedge fund’s push to appoint three directors and divide the common stock into two classes.

Einhorn had reiterated that their proposals would help unlock tens of billions of dollars in shareholders’ value without changing General Motors Company (NYSE:GM)’s business strategy, capital allocation priorities, or financial policy. Nevertheless, Einhorn’s proposals were shot down in 2017 at an annual shareholders’ meeting.

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