This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks David Einhorn Bought -- and So Should You

DST Systems

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

One more name that Greenlight added onto in the last quarter is DST Systems (DST - Get Report). DST is a mid-cap technology stock whose main business is providing portfolio accounting services to mutual funds -- that niche operation makes up more than two-thirds of DST's total sales. The firm also provides printing and mailing services for the telecom and healthcare industries.

By taking care of back-office functions for scores of mutual funds, DST reduces clients' costs, particularly at smaller funds or fund families that don't have the benefits of paying for in-house back-office staff. And because DST's services are so nuanced, customer stickiness is extremely high; funds can't switch providers or move their back-office work in-house without incurring massive headaches. For that reason, DST owns close to half of the outsourced back-office market in the mutual fund world.

The firm also owns a portfolio of various and sundry assets, ranging from real estate to private equity holdings. While that positioning makes DST less of a pure-play service firm, it also gives the company access to liquidity that it can raise without selling off important parts of its business. Greenlight picked up 442,000 shares of DST in the last quarter, bringing Einhorn's stake in the firm to $85 million.

To see the rest of David Einhorn's plays, including a complete list of which stocks he added or sold off, check out the Greenlight Capital Portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
CSC $27.62 2.11%
DST $101.25 0.71%
EXPE $102.25 -1.08%
MRVL $8.61 2.38%
STX $29.88 2.93%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs