In an interview with The Motley Fool, hedge fund guru David Einhorn recently offered some insight into his investment approach, along with some of his views on the current market.

Asked how he comes up with investing ideas, Einhorn said, “Our ideas start with a story. Is the market missing something that we see? Once we find an idea, the due diligence starts. We try to uncover a mispricing, and then we invest. Despite our reputation, we are predominantly long investors.”

One stock Einhorn is quite high on right now: Dutch insurer Delta Lloyd, which he called “the only stock in my portfolio that I think if it doubled, it would still be cheap.”

As for short opportunities, Einhorn said he looks for “companies that are misunderstood, overvalued, and have deteriorating performance. We tend to avoid shorting open-ended growth stories. We also look for improper accounting practices.”

Asked whether he is bullish or bearish on the S&P 500 over the next two years or so, Einhorn said that there are a “wide range of [potential] outcomes on both sides”. He seems more focused on individual picks, saying that he tries to construct a portfolio that can generate strong returns under a variety of different scenarios.

One area Einhorn isn’t high on: banks. Asked whether he’s bullish on Bank of America, he replied, “I wouldn’t own any banks right now.”

In a different segment of the interview, Einhorn talks about the SEC, credit rating agencies, and the role of media in the financial world.