David Einhorn laid out a bullish case for a group of out-of-favor companies at the Sohn Investment Conference on Tuesday, betting that operational turnarounds and artificial intelligence adoption could drive sharp a rebound in overlooked stocks. “We’re finding interesting investments where management is repositioning businesses towards more durable, more disciplined, more generative growth,” Einhorn said. “The value creation question is whether management can convert the strategic change into better visibility, better margins and eventually a better multiple.” The Greenlight Capital founder pitched five investment ideas in New York, focusing on companies he said are in a transitional period with catalysts for growth. Acadia Healthcare Among Greenlight’s top ideas was Acadia Healthcare , a leading operator of behavioral health hospitals and clinics in the U.S. Einhorn said the company’s newer facilities are underutilized and that the key to unlocking value will be raising occupancy rates and negotiating improved reimbursement terms with insurers. “Acadia needs to bring these recent openings to the target occupancy rates, back to 70 or 80%, and negotiate better reimbursement rates with managed payers,” he said. The hedge fund manager said a 10 times multiple could translate into share price around $56, or double the current share price. Centene Greenlight also highlighted Centene, arguing the health insurer could become a major beneficiary of AI by automating labor-intensive claims pr …
