What Is David Einhorn’s Net Worth? Early Life, Education And Career

What is David Einhorn’s net worth?

David Einhorn, an investor and hedge fund manager, has a net worth of $1 billion.

He founded Greenlight Capital, a hedge fund specializing in North America’s corporate debt offerings and equities.

Greenlight Capital is most notable for its short selling of Lehman stock before the collapse of Lehman Brothers in 2008.

In addition to his hedge fund activities, Einhorn is an amateur poker player and has competed in various World Series of Poker tournaments.

David Einhorn Net Worth
David Einhorn Net Worth

Early Life and Education

David Einhorn was born on November 20, 1968, in New Jersey as the eldest of three boys of Jewish parents Nancy and Stephen.

His father founded the consulting firm Einhorn & Associates and the venture capital fund Capital Midwest Fund.

In the mid-1970s, the family moved to Wisconsin, where Einhorn attended Nicolet High School in Glendale, graduating in 1987.

He went on to Cornell University, graduating summa cum laude with a BA in government in 1991.

What Is David Einhorn’s Net Worth? Early Career Beginnings

After graduating from Cornell, Einhorn began his career as an investment banker on Wall Street.

He worked for two years with the boutique investment bank Donaldson, Lufkin & Jenrette, and then went to work for the hedge fund Siegler, Collery & Co.

Greenlight Capital

In 1996, Einhorn founded the hedge fund Greenlight Capital.

The fund flourished in its early days by short selling weak financial firms, such as Conseco and Sirrom Capital.

However, Greenlight lost 4% of its total capital on a short on Chemdex just before the dot-com bubble burst.

In the summer of 2007, Greenlight began shorting Lehman Brothers stock, with Einhorn believing that the firm had huge exposures to illiquid real estate investments that were improperly accounted for.

Lehman went on to declare bankruptcy in 2008.

Greenlight made headlines again in early 2012 when the UK Financial Services Authority fined Einhorn and the fund $11.2 million for insider trading in the UK.

The fine was the second-largest ever issued to an individual in the history of the UK’s FSA.

Greenlight struggled throughout the latter half of the 2010s.

From 2014 to 2018, its assets under management decreased from around $12 billion to about $5.5 billion.

In 2015, Greenlight was ranked 53rd out of 58 hedge funds in the Institutional Investor’s Alpha Hedge Fund Report Card.

It received a “D” grade for the second year in a row, as well. Greenlight continued to flounder into the 2020s as it posted a loss of 21.5% during the advent of the global COVID-19 pandemic.

Apple Lawsuit

In early 2013, Einhorn initiated a lawsuit against Apple in a Manhattan court, seeking to pressure the company into issuing dividend-paying perpetual preferred stock as a means of distributing a portion of its $137 billion in cash to shareholders.

The court ultimately ruled in favor of Einhorn.

Poker Playing

As an amateur poker player, Einhorn has competed in several World Series of Poker tournaments.

In the 2006 World Series of Poker Main Event, he achieved an 18th place finish and won $659,730.

He performed even better in the 2012 World Series of Poker Big One for One Drop tournament, securing a third-place position and taking home $4,352,000.

What Is David Einhorn’s Net Worth? Philanthropy

Due to his wealth and status, Einhorn has significantly engaged in philanthropy.

He is a major contributor to the Michael J. Fox Foundation, of which he also serves as a board member; in 2006, he directed his poker winnings to the organization.

Einhorn also holds a board membership at the Robin Hood Foundation.

Over the years, he has made donations to various organizations, including the Tomorrows Children’s Fund, the Project on Government Oversight, the Center for Public Integrity, and City Year.

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Book

In 2010, Einhorn authored the book “Fooling Some of the People All of the Time,” chronicling his six-year battle against Allied Capital in the early 2000s.

During this period, he accused the company of defrauding the Small Business Administration, while Allied countered that Einhorn manipulated the market by recommending shorting the company, leading to a drastic drop in Allied’s stock value.

In mid-2007, a comprehensive SEC investigation determined that Allied violated securities laws related to its management of illiquid securities.

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Personal Life

In 1993, Einhorn married financial reporter and media consultant Cheryl Strauss, who is also a fellow Cornell alumnus.

They raised three children together before divorcing in 2017.

Einhorn currently resides in Westchester County, New York.

What is David Einhorn’s net worth?

David Einhorn, an investor and hedge fund manager, has a net worth of $1 billion.

 

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