David Einhorn made a bullish case for a group of unpopular companies at Tuesday’s Thorn Investment Conference, betting that a turnaround and the introduction of artificial intelligence could spark a sharp rally in overlooked stocks. Einhorn said, “Management is finding interesting investments that reposition the business for more durable, more disciplined and more generative growth.” “The question of value creation is whether management can translate strategic changes into better visibility, better profits, and ultimately better multiples.” Greenlight Capital founders pitched five investment ideas in New York, focusing on companies in transition to drive growth. Acadia Healthcare Greenlight’s top ideas included Acadia Healthcare, a leading operator of behavioral health hospitals and clinics in the United States. Einhorn said the company’s new facilities are underutilized and the key to unlocking value is increasing occupancy and negotiating improved reimbursement terms with insurance companies. “Acadia needs to bring recent vacancies back to target occupancy rates of 70-80% and negotiate better reimbursement rates with management payers,” he said. The hedge fund manager said a 10x could take the stock to about $56, or twice its current share price. Centene Greenlight also highlighted Centene, arguing that health insurance companies could become major beneficiaries of AI by automating labor-intensive claims processing functions. “Artificial intelligence is well-suited to automating manual and repetitive functions, and we believe Centene can greatly benefit from AI in this way,” he said. Einhorn said the company struggled in 2025 with medical cost increases exceeding annual price adjustments, but expects significant upside once margins normalize. Applying a conservative price-to-earnings ratio of 10 to 12 times, Einhorn said the current stock price of about $56 could be worth $85 to $102 per share. Fluor Industrial engineering and construction company Fluor was also one of the ideas featured. Einhorn said the company now stands to benefit from the U.S. capital investment boom related to data centers, pharmaceuticals, manufacturing, LNG infrastructure, nuclear power and copper mining. “They have changed after their near-death experience and are ready for success and reappraisal,” he said. “Investors are still focused on the past,” he said, arguing that the market is underestimating Fluor’s exposure to multiple potential “supercycles.” The investor said the stock could reach $115 within a few years if the company completes its share buyback program. Versant Media Einhorn also touted Versant Media, saying the company’s focus on live news and sports makes it relatively isolated from streaming competition. Although he recognizes the structural pressures from cord-cutting, he said Versant’s cash generation will give it the flexibility to pursue stock buybacks and acquisitions outside of traditional cable TV. “We have significant free cash flow from growing the business through stock purchases and bolt-on acquisitions from our cable TV business,” he said. Einhorn estimated that Versant could generate free cash flow equal to more than 60% of its market capitalization over the next four years. Victoria’s Secret Rounding out the presentation was Victoria’s Secret, where Einhorn said the lingerie retailer’s margins remain under pressure from tariffs, but revenue trends are stable. He predicted an even stronger recovery in profit margins starting in 2027, and said Victoria’s Secret could also benefit from potential tariff rebates. Greenlight believes Victoria’s Secret could rise to the low $80s, which would be an increase of about 74% from current levels. Disclosure: Versant Media is the parent company of CNBC.
