David Einhorn, the hedge fund manager behind Greenlight Capital, has expressed significant concerns regarding the impact of artificial intelligence (AI) on stock market valuations. His latest investment strategy appears to align closely with these concerns, as outlined in recent regulatory filings.
In the fourth quarter of 2025, Einhorn invested tens of millions of dollars in companies like Graphic Packaging, Capri Holdings, and various healthcare stocks, steering clear of major tech companies that are likely beneficiaries of AI advancements. Einhorn notably increased his stakes in Graphic Packaging and Capri by more than 70%, with both now valued at over $100 million—Graphic Packaging among his top five holdings.
Despite a challenging year for Graphic Packaging, whose shares experienced approximately a 23% decline in Q4 and over 44% for the entire year, analysts remain optimistic about its prospects. The average price target suggests potential for more than 35% upside. Capri Holdings, on the other hand, saw its shares rise over 22% in the same quarter and finished the year nearly 16% higher, breaking a three-year downward trend.
Einhorn’s focus on consumer-centric stocks is evident in his healthcare investments as well. He dramatically increased his position in Acadia Healthcare by about 150%, amounting to over $58 million, despite the stock’s drastic decline of 43% in Q4 2025. Analysts are hopeful for a rebound, with many citing buy ratings and an average price target indicating a potential 16% gain over the next year.
Einhorn’s message during a recent appearance on CNBC highlighted his expectations for Acadia’s new CEO, Debbie Osteen, to stabilize operations, given the stock’s tumultuous past. He pointed out the disconnect in valuations, suggesting that given the historical price movement, the current share price is not reflective of its true value.
Additionally, Einhorn increased his holdings in Centene, a managed healthcare provider, by about 70%, raising its value above $108 million. While shares saw a rise of over 15% in Q4, they still faced a significant 37% decline for the year. Analysts have a hold rating on Centene, with modest expectations for future gains.
Einhorn also opened a new stake worth more than $35 million in Henry Schein, a healthcare product manufacturer, whose shares rose 13% in Q4. However, the general sentiment among analysts suggests limited movement ahead.
In a noted shift, while remaining cautious about tech valuations, Einhorn nevertheless constructed a stake in Global Payments, valued at around $35 million. The company saw an almost 7% drop in Q4, culminating in a 31% decline for all of 2025; nevertheless, it has shown signs of recovery in 2026.
Einhorn expressed a cautious attitude towards AI, likening its potential impact to that of the internet, yet questioning the immediate investment opportunities that may arise from it. He acknowledged the profound future influence of AI on society, while maintaining a skeptical view regarding its short-term effects on stock returns.
As the market navigates the complexities introduced by technological advancements, Einhorn’s selective investment approach may signal a broader commentary on the balancing act between enthusiasm for innovation and prudent investment practices.
