David Einhorn presented five turnaround investment ideas at the Sohn Investment Conference on May 12, 2026, in New York, pitching what he called “transition stories” — deeply discounted companies undergoing strategic transformations with credible paths to higher earnings and valuations.
Speaking at Jazz at Lincoln Center, the Greenlight Capital founder told investors that while U.S. markets appear broadly expensive, his firm is finding compelling opportunities in overlooked businesses repositioning toward “more durable, more disciplined, more generative growth.” Einhorn said the key question for each investment is whether management can convert strategic change into better visibility, improved margins, and eventually a higher valuation multiple.
Acadia Healthcare, a leading operator of behavioral health hospitals and clinics, topped Einhorn’s list. He argued that the company’s newer facilities are underutilized and that unlocking value depends on raising occupancy rates to 70–80% and negotiating better reimbursement terms with insurers. At a 10 times earnings multiple, Einhorn said the stock could reach $56 per share, roughly double its current price.
Centene, a health insurer focused on administering Obamacare plans, was highlighted as a potential beneficiary of artificial intelligence. Einhorn said the company struggled in 2025 with rising medical costs outpacing price adjustments, but he sees significant upside if margins normalize. Applying a conservative 10 to 12 times earnings multiple, he valued the stock between $85 and $102 per share, compared with about $56 currently.
Fluor, an industrial engineering and construction firm, was positioned as a play on U.S. infrastructure spending. Einhorn said the company has “transformed itself after a near death experience” and stands poised to benefit from capital spending booms tied to data centers, pharmaceuticals, manufacturing, liquefied natural gas infrastructure, nuclear power, and copper mining. He projected shares could reach $115 within several years as the company completes its buyback program.
Versant Media, a spinout from Comcast that includes CNBC and other channels, appealed to Einhorn because of its relative insulation from streaming competition through its focus on news and live sports. Despite structural pressures from cord-cutting, he said Versant’s cash generation gives it flexibility to repurchase shares or pursue acquisitions outside traditional cable television. Einhorn estimated the company could generate free cash flow equal to more than 60% of its market capitalization over the next four years.
Victoria’s Secret, the lingerie and women’s clothing retailer, rounded out the five. Einhorn acknowledged that tariffs continue to pressure margins, but said revenue trends have stabilized and a larger profit margin recovery is expected to begin in 2027. He forecast the stock could climb into the low $80 range, representing roughly 74% upside from current levels, and noted the company could also benefit from potential tariff refunds.
The through-line across all five picks reflected Einhorn’s long-standing value investing approach: finding companies where management is undertaking genuine strategic change, where near-term headwinds have depressed valuations, and where the market has not yet repriced the business for improved fundamentals. His presentation, delivered with characteristic wit and accompanied by cartoons and classic song clips, underscored his conviction that despite elevated overall market valuations, pockets of mispricing remain available to disciplined investors willing to look beyond near-term noise.
Sources
- CNBC — reported Einhorn’s five turnaround stock pitches, specific valuations, and investment thesis for each company
- Hedge Fund Alpha — covered Einhorn’s presentation at Sohn 2026, describing the five companies as “transition stories” and his focus on businesses repositioning toward better margins
- Business Insider — detailed Einhorn’s five picks and his bullish case for each, including commentary on the presentation style
- Seeking Alpha — outlined Einhorn’s investment thesis on U.S. transitional companies and the five specific picks
- The Sohn Conference Foundation — confirmed the event date (May 12, 2026) and venue (Jazz at Lincoln Center, Frederick P. Rose Hall, New York City)
