David Einhorn’s Greenlight Capital shed almost all of its Peloton shares after owning the exercise bike startup for a year, according to a new 13F filing. His hedge fund reduced exposure to Peloton by more than 96% to a stake worth merely $1.2 million at the end of June, the filing showed. The star manager first invested in the tech name in the second quarter of 2024. He even pitched the stock at the Robin Hood Investors Conference while riding a Peloton bike on stage, saying shares were “significantly undervalued.” Earlier this month, the company posted a surprise profit for its fiscal fourth quarter and outlined its strategy to return to growth under new CEO Peter Stern . The stock has jumped 19% this month on the back of strong earnings. Still, after rallying 42% in 2024, the stock has fallen about 2% this year, significantly underperforming the S & P 500. PTON 1Y mountain Peloton over the past 1-year period Elsewhere, Greenlight built a significant stake in industrial name Fluor last quarter. The bet worth nearly $200 million was the fund’s second biggest holding at the end of June. It seems to be a value bet as the stock has fallen more than 15% this year. Einhorn, a 56-year-old Cornell grad, also picked up smaller stakes in Sotera Health , Cigna Group and Victoria’s Secret last quarter. Einhorn founded Greenlight Capital nearly three decades ago and went on to produce a 26% annualized return for the next decade, far outpacing the broader market and many peers. He then thrived during the financial crisis, foreseeing the downfall of Lehman Brothers. His stellar track record made him one of the most followed hedge fund managers on Wall Street. In recent years, he’s found some success purchasing value stocks that have buyback strategies in place. At the beginning of the year, Einhorn warned of speculative behavior in the bull market that he thinks has ascended to a level beyond common sense.
