David Einhorn is a widely renowned hedge fund manager who co-founded Greenlight Capital in 1996. The billionaire graduated from Cornell University and gained experience in the hedge fund industry under the tutelage of Gary Siegler and Peter Collery at the SC Fundamental Value Fund. Einhorn rose to prominence in 2002, when he successfully questioned the accounting practices of Allied Capital, a private equity firm, and disclosed having a short position at the Sohn Investment Conference. The stock plummeted, sparking a heated exchange of claims between Allied and Einhorn. A five-year-long inquiry by the United States Securities and Exchange Commission (SEC) confirmed Einhorn's claim, revealing that Allied did breach accounting rules related to securities laws.
Greenlight Capital focuses on value-oriented initiatives. The investment management firm's primary concentration lies in long and short positions in listed equity securities. This strategy allows Einhorn to navigate both rising and falling markets, giving him flexibility during periods of uncertainty.
Greenlight Capital gained 8.2% in the first three months of 2025, boosted by a gold bet that it believes will pay out further as Trump administration policies continue to shake the economy. In a letter to clients, the firm stated that the precious metal was "by far the biggest winner" in their portfolio, increasing 19%. Gold is frequently used as an inflation hedge, and Greenlight believes the White House's policies would only worsen inflation. "All current Administration policy roads lead to higher longer-term inflation." the letter added. Greenlight reasoned that slower growth would push the US Federal Reserve to drop interest rates more than markets anticipate. As a countermeasure, the fund acquired a stake in SOFR futures (secured overnight financing rate), while also including tail protection in case the dollar falls significantly compared to the euro and yen.
Another aspect of the Greenlight letter was the assertion that the US equities market is in the early stages of a bear market. To that end, the firm was able to determine precisely when to opt out of its equity holdings. According to the firm's letter:
"Bear markets do not go straight down. They are punctuated with 'rip-your-face-off' rallies based on big headlines, extreme investor sentiment, and experience that buying the dip usually pays off."
Our Methodology
For this article, we examined Greenlight Capital’s Q4 2024 13F filings to list down billionaire David Einhorn’s stock picks with the highest upside potential. We ranked the companies in ascending order of their upside potential. These equities are also popular among elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up photo of a copper rod coiled around itself.
Teck Resources Limited (NYSE:TCK) is a prominent mining and mineral development company that extracts and explores a wide range of minerals, including copper, coal, zinc, and oil. With activities in Canada, Chile, Peru, and the United States, the company operates across five business segments: steelmaking, coal, copper, zinc, energy, and corporate.
Following the company's first-quarter results announcement, Benchmark maintained its Buy rating and $55 price target for Teck Resources Limited (NYSE:TECK). Teck Resources surpassed expectations, reporting adjusted EBITDA of C$927 million, exceeding the C$808 million market concensus and Benchmark's own C$867 million projection. This success was related to strong performance in the zinc industry. Furthermore, Teck remains optimistic about its future prospects, anticipating copper output of 490,000 to 565,000 tonnes and zinc production of 525,000 to 575,000 tonnes this year. The company is also continuing its $3.25 billion buyback program, with more than half of it already completed, and is looking into near-term copper projects with possible investments of $3.2 to $3.9 billion.
Overall TCK ranks 8th on our list of David Einhorn's stock picks with huge upside potential. While we acknowledge the potential for TCK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TCK but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
