Disclosure: This article is for informational purposes only and does not constitute investment advice. Stock prices and analyst theses change constantly. Always do your own research and consult a licensed financial advisor before making investment decisions.
David Einhorn, the founder of Greenlight Capital, has a habit of using the Sohn Investment Conference to make a case investors don’t expect. At the 2026 event, held May 12 at Jazz at Lincoln Center in New York, he skipped his usual pattern of pitching obscure international names and instead laid out five well-known American companies he believes the market has mispriced, businesses going through genuine operational turnarounds that he argues investors are still treating as permanent decline.
Here’s what he actually said, what the five picks are, and how they’ve performed since.
What Happened at Sohn 2026
Einhorn opened his presentation by acknowledging that US markets look expensive overall, but argued his firm is finding real opportunities in companies where management is actively repositioning the business toward better margins and more durable cash flow. His framing, delivered with his usual mix of slides, cartoons, and pop-culture references: the value creation question isn’t whether a business is cheap, it’s whether management can convert a strategic change into better visibility, better margins, and eventually a better multiple.
He called the five names his “transition stories,” businesses that suffered for identifiable, specific reasons and are now positioned for a potential re-rating as those pressures fade.
The Five Stocks Explained
Fluor (FLR)
The engineering and construction company was, in Einhorn’s words, coming back from “a near-death experience.” More than 80% of its project backlog is now on a cost-plus basis, which reduces the risk of the cost overruns that hurt the company in the past. His thesis ties Fluor to a broader US capital spending boom across data centers, pharmaceuticals, manufacturing, LNG infrastructure, nuclear power, and copper mining. He argued the stock could reach $115 within several years if the company completes its buyback program, representing the largest potential upside in the basket, roughly 167% from where it traded at the time.
Worth noting: Greenlight wasn’t pitching a brand-new idea here. The fund had already built a position in Fluor in its Q2 2025 filings, well before the Sohn presentation.
Victoria’s Secret (VSCO)
Einhorn’s case centered on margin recovery. He said the lingerie retailer’s margins are running at roughly half their historical level, pressured in part by tariffs, but that revenue trends have stabilized and new leadership is reviving what he called the brand’s “sexy DNA,” including its televised fashion show. Applying what he described as a conservative 10-to-12-times earnings multiple, he estimated the stock could be worth $85 to $102 per share, compared with roughly $56 at the time of the pitch, about 74% upside at the high end.
Versant Media (VSNT)
A relatively new name for most investors, Versant is the cable spin-off from Comcast. Einhorn called it “supercheap” and “very sexy,” pointing to a roughly 19% free cash flow yield. His argument: the market is overly focused on the structural decline of cable subscriptions and underweighting Versant’s focus on news and live programming, which he believes is more insulated from streaming competition than entertainment cable. He estimated the company could generate free cash flow equal to more than 60% of its market capitalization over the next four years, cash that could fund buybacks or bolt-on acquisitions outside traditional cable TV.
Acadia Healthcare (ACHC)
Pitched as a long alongside Centene, with less public detail than the other three names, but consistent with Einhorn’s broader healthcare exposure in the Greenlight portfolio.
Centene (CNC)
The second healthcare name in the basket, rounding out what Einhorn framed as a set of businesses recovering from company-specific setbacks rather than facing permanent structural decline.
Einhorn’s Investment Thesis: “Transition Stories”
The through-line across all five picks reflects Einhorn’s long-standing value-investing approach: find companies where real, identifiable operational change is underway, where near-term problems have pushed the valuation down further than the business’s actual prospects justify, and where the market hasn’t yet repriced the stock to reflect the improving picture.
It’s a deliberately contrarian stance in a market where, as Einhorn himself noted, capital has been flowing aggressively toward momentum names and anything connected to artificial intelligence, while companies recovering from operational mistakes or cyclical downturns often trade at valuations that price in little chance of recovery at all.
How the Picks Have Performed So Far
Early performance, tracked roughly a week after the presentation, showed a mixed start: the five-stock basket was down about 2% on average, with Versant Media the only name trading higher (up roughly 5%), while Acadia Healthcare and Victoria’s Secret were each down around 5%.
That’s a snapshot, not a verdict. Einhorn’s own thesis for names like Victoria’s Secret and Fluor is explicitly built around a multi-year timeline, margin recovery and capital-spending cycles don’t play out in days or weeks. Short-term price action after a high-profile pitch like this often says more about immediate trading flows than about whether the underlying thesis is correct.
Is Einhorn’s Track Record Reliable?
Worth being honest about here: Einhorn’s public track record over the past decade has been mixed. Several of his most publicized short positions in recent years, including bets against Amazon, Netflix, and Tesla, moved against him for extended periods. His long-side value investing, by contrast, is closer to his original strength as an investor, and by his own account in recent shareholder letters, he’s shifted his broader strategy toward companies generating real, current cash flow rather than waiting indefinitely for the market to recognize undervalued assets.
That mixed record doesn’t make this basket right or wrong, it’s a reason to treat any single high-profile pitch, from Einhorn or anyone else, as one input rather than a guarantee.
Should You Buy These Stocks?
That’s not a question this article can answer for you. A few things worth considering before acting on any conference stock pitch:
- Understand the specific thesis, not just the ticker. Einhorn’s case for each stock rests on a specific operational or margin-recovery story playing out over years, not a guaranteed short-term move.
- Check current price versus the pitch price. Stocks move fast after a high-profile presentation, and some of the opportunity may already be priced in by the time you’re reading this.
- Consider your own timeline. Turnaround theses like these generally require patience measured in quarters or years, not weeks.
- Remember that even skilled investors are wrong often. A well-reasoned thesis from a well-known manager is not the same as a guaranteed outcome.
Frequently Asked Questions
What stocks did David Einhorn pitch at Sohn 2026?
Fluor (FLR), Victoria’s Secret (VSCO), Versant Media (VSNT), Acadia Healthcare (ACHC), and Centene (CNC), presented as a basket of “transition stories” at the Sohn Investment Conference on May 12, 2026.
What is David Einhorn’s investment thesis for these picks?
That each company is undergoing a genuine operational turnaround, driven by factors like cost-plus contracting (Fluor), margin recovery (Victoria’s Secret), or a shift toward more resilient programming (Versant), and that the market hasn’t yet repriced the stock to reflect improving fundamentals.
How much upside did Einhorn project?
Estimates ranged from roughly 52% to 167% across the five stocks, with Fluor representing the highest projected upside and Victoria’s Secret around 74% at his estimated fair value.
How have Einhorn’s Sohn 2026 picks performed?
In the days immediately following the presentation, the basket was down modestly on average, with Versant Media the standout performer. Einhorn’s thesis for several of the names is built around a multi-year timeline, so short-term performance is not a reliable indicator of whether the underlying thesis will prove correct.
Is David Einhorn a reliable stock picker?
His track record is mixed. Several high-profile short positions in recent years underperformed for extended periods, while his long-side value picks are closer to the strategy that built his early reputation. His own recent letters describe a shift toward companies with strong current cash generation rather than purely undervalued assets awaiting a market re-rating.
About the Author
Katherine Kerpan is a personal finance writer with over 10 years of experience covering taxes, government benefits, and consumer financial protection. His background includes several years working in tax preparation before moving into full-time financial journalism, and her writing focuses on translating IRS guidance, benefit program rules, and financial policy changes into plain language readers can actually act on.
She pays particular attention to separating confirmed government action from proposals, rumors, and scams, an area where she sees firsthand how quickly misinformation can spread once a payment claim goes viral. Every piece he publishes is checked against primary sources: IRS.gov, official agency statements, and verified legislative text, rather than secondhand claims circulating online.
When she is not writing, Katherine spends time helping family and friends untangle their own tax and benefits questions, which is usually where his best article ideas come from. You can reach Katherine at katheriinekerpan@gmail.com.
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