David Einhorn Finds a Winner in Michael Kors (KORS)
Greenlight Capital hedge fund manger David Einhorn took his lumps in 2015. The fund lost over 20 percent on the year amid bets gone bad being long a plunging SunEdison (NYSE: SUNE) and short a couple high-flying FANG stocks. However, today Einhorn is again showing his stock picking prowess and why many investors are sticking by his side.
The stock is question is Michael Kors (NYSE: KORS). Shares are surging 24% Tuesday following strong results and a solid outlook.
In October 2015, Einhorn disclosed that the firm established a position at an average price of $45.18. Today's shares are up 24% to $50.22, putting Einhorn solidly in the green on the trade.
"We believe KORS has multiple avenues of continued growth, including its international business and footwear," the hedge fund manager said at that time. "We established our position at an average price of $45.18, less than 9.5x March 2016 fiscal year earnings estimates net of the $4 per share in cash."
Einhorn held 7,043,700 shares of Michael Kors at the end of the third quarter.