David Einhorn Bets on Turnaround Plays for Greenlight Capital

Known primarily for his aggressive short-selling, David Einhorn took the stage at the Sohn conference on Tuesday to pivot toward optimism. The Greenlight Capital founder unveiled five specific stock picks currently in transition, projecting potential upside ranging from 52% to 167% as these companies work through internal restructuring.

Einhorn’s portfolio of turnaround bets spans diverse sectors, ranging from healthcare and engineering to media and retail. His selection includes Acadia Healthcare, the insurer Centene, construction giant Fluor, the media spinout Versant, and lingerie retailer Victoria’s Secret. While each firm faces unique operational hurdles, Einhorn maintains that their underlying business models possess enough resilience to emerge from their current transformations with significant market gains.

The investment thesis varies by company, driven by a mix of macro tailwinds and internal strategic shifts. For Fluor, Einhorn points to a massive infrastructure boom as a primary catalyst for earnings growth. Conversely, his interest in Versant Media and Victoria’s Secret centers on valuation and brand identity. He described Versant as exceptionally undervalued, while noting that Victoria’s Secret is reclaiming its legacy market position under new leadership. The presentation, punctuated by pop-culture references and a brief jig to Gloria Gaynor’s music, signaled a distinct change in tone for the veteran investor.