Hedge fund manager David Einhorn built Greenlight Capital‘s stake in Victoria’s Secret & Co. (NYSE:VSXY) from the ground up, steadily growing the position over a year before cashing out entirely, a trade that became one of the fund’s biggest winners.
A Year-Long Buildup
The disclosure was made by DME Capital Management, a successor to Einhorn’s Greenlight Capital, which he runs and controls, in a 13F filing with the SEC last week.
The hedge fund first disclosed the position in mid-2025 and expanded it aggressively over the following quarters as the retailer worked through a management shakeup and brand refresh, growing the stake to more than 2.2 million shares by the first quarter of 2026, before exiting entirely in the quarter ended June 30.
Einhorn had grouped the stock among a handful of turnaround bets he presented at the Sohn Investment Conference in May.
The Payoff
In Greenlight’s second-quarter letter, Einhorn confirmed the fund had fully exited the position, crediting new Victoria’s Secret leadership for the turnaround.
“Under new management, the company refreshed the brand, returned the company to ‘sexy’ (in its marketing and in its new ticker), generated renewed customer interest and improved financial performance,” he wrote, noting the trade generated a 157% internal rate of return over a one-year holding period.
How Have Shares Performed
Victoria’s Secret shares have surged 62.67% year-to-date and more than quadrupled over the past year, up 306.75%
Momentum has cooled more recently, though, with the stock up just 0.33% over the past month.
Price Action: On Thursday, the stock closed 2.04% lower at $86.80 and gained 0.32% in after-hours trading.
Benzinga edge rankings indicates Victoria’s Secret’s stock has a Value score in the 8th percentile and a Growth score in the 97th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: JHVEPhoto / Shutterstock.com
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