This article is part of a series that provides an ongoing analysis of the changes made to David Einhorn’s Greenlight Capital 13F portfolio on a quarterly basis. It is based on Einhorn’s regulatory 13F Form filed on 5/15/2024. Please visit our Tracking David Einhorn’s Greenlight Capital Holdings article series for an idea on his investment philosophy and our previous update for the fund’s moves during Q4 2023.
Greenlight Capital’s 13F portfolio value increased from $2.05B to $2.18B this quarter. Einhorn’s Q1 2024 letter reported that the fund returned 4.9% for Q1 2024 vs 10.6% for the S&P 500 Index. Since 1996 inception, Greenlight has returned ~13% annualized vs ~9.6% annualized for S&P 500 index. In addition to partner stakes, the fund also invests the float of Greenlight Capital RE (NASDAQ:GLRE). To learn about David Einhorn and the perils of shorting, check-out his “Fooling Some of the People All of the Time, A Long Short (and Now Complete) Story“.
New Stakes:
Penn Entertainment (PENN): PENN is a fairly large 3.8% of the portfolio stake established this quarter at a cost-basis of $22.69. The stock currently trades well below that range at $17.28.
HP Inc. (HPQ): The 2.24% of the portfolio HPQ position was purchased at a cost-basis of $30.76. The thesis is based around the idea that an AI driven PC adoption cycle is underway and that would substantially benefit their business. The stock currently trades at $36.18.
Roivant Sciences (ROIV): ROIV is a ~2% of the portfolio position established this quarter at a cost-basis of $10.96. The thesis is that they have several shots on goal including certain COVID related litigation that could result in homeruns. The stock is now at $10.62.
Liberty Global (LBTYA): LBTYA is a 1.58% stake purchased at a cost-basis of $19.19. Their undervaluation thesis is pinned on the idea that spinning the Swiss business later this year could help unlock the value. The stock currently trades at $18.13.
Stake Disposals:
Gulfport Energy (GPOR): GPOR was a 1.45% of the portfolio stake built in the two quarters through Q1 2023 at prices between ~$61 and ~$97. There was a ~25% selling next quarter at prices between ~$76 and ~$108. Q3 2023 saw a minor ~2% trimming while in the last quarter there was a ~6% increase. The position was sold this quarter at prices between ~$122 and ~$160. It is now at ~$160.
Herc Holdings (HRI): HRI was a ~1% stake established during Q3 2023 at prices between ~$119 and ~$147. There was a minor ~6% stake increase in the last quarter. The elimination this quarter was at prices between ~$138 and ~$170. The stock currently trades at ~$134.
First Horizon Corp. (FHN): The 0.95% stake in FHN saw a minor ~6% stake increase last quarter. The stake was disposed this quarter at prices between $13.12 and $15.40. Overall, they exited with a 40% return in eight months of ownership. The stock is now at $15.20.
New York Community Bancorp (NYCB): The 0.91% NYCB stake was established during Q1 2023 at prices between ~$6.40 and ~$10.40. It was sold down by ~25% in the next quarter at prices between ~$8.50 and ~$11. The stake was disposed this quarter at prices between $2.73 and $10.48. The stock is now at $3.19. Overall, they sold immediately after January results for a minor overall loss.
Stake Increases:
Kyndryl Holdings (KD): KD is a 6.58% of the portfolio position built over the five quarters through Q4 2022 at prices between ~$8.25 and ~$41 and the stock is now at $26.51. There was a ~50% selling during Q2 2023 at prices between ~$11.50 and ~$15 while in the next quarter there was a ~25% increase at prices between $12.22 and $16.92. The last quarter also saw a ~14% stake increase. There was a minor ~4% increase this quarter.
Alight, Inc. (ALIT) and Viatris (VTRS): ALIT is a 5.20% of the portfolio stake established in the last quarter at prices between ~$6.50 and ~$8.60 and the stock currently trades at $7.57. The position was increased by 25% this quarter at prices between $8.16 and $10.32. The 2.47% VTRS position was purchased last quarter at prices between ~$8.75 and ~$11 and it now goes for $10.42. The stake was increased by 35% this quarter at prices between $11.16 and $13.40.
Note: their original cost-basis on ALIT was $7.98 and that of VTRS was $10.63.
LivaNova plc (LIVN): The 3.41% of the portfolio stake in LIVN was built over the six quarters through Q3 2022 at prices between ~$44 and ~$92. There was a ~23% stake increase during Q1 2023 at prices between ~$41 and ~$58. That was followed by a ~15% increase during Q3 2023 at prices between ~$50 and ~$59. The last two quarters also saw minor increases. The stock is now at $52.80.
DHT Holdings (DHT): The 2.12% DHT position was established during Q3 2023 at prices between $8.15 and $10.30. The last quarter saw a ~87% stake increase at prices between ~$9.50 and ~$11.50. The stock currently trades at $11.76. This quarter saw a ~7% increase.
First Citizens BancShares (FCNCA): FCNCA is a 1.88% of the portfolio position purchased during Q1 2023 at prices between ~$509 and ~$973 and the stock currently trades well above that range at ~$1696. There was a ~12% increase in the last three quarters.
AerCap Holdings (AER), Kenvue Inc. (KVUE), and Seadrill Ltd. (SDRL): These small (less than ~1.5% of the portfolio each) positions were increased during the quarter.
Stake Decreases:
Green Brick Partners (GRBK): GRBK is currently the largest position at ~29% of the 13F portfolio. The stake was acquired as a result of BioFuel Energy’s JGBL Builder Finance acquisition and rename transaction. The deal closed (October 2014) with Greenlight owning 49% of the business. David Einhorn was appointed Chairman of the Board following the transaction. Q1 2021 saw a ~28% selling at ~$20.50 per share through an underwritten offering. Q3 2023 saw a similar reduction at prices between $41.51 and $58.51. The reduction was primarily due to in-kind distributions to redeeming shareholders rather than actual sales in the open market. The stock currently trades at $55.07. The last two quarters also saw a ~17% trimming.
Note: They have a ~23% ownership stake in the business.
Brighthouse Financial (BHF): BHF is a large (top three) stake at ~7% of the portfolio. The position was established in Q3 2017 and increased by ~60% in the following quarter at an overall cost-basis of $57.92. There was a ~70% selling in Q4 2018 at prices between $29 and $46.50. The stock is currently at $42.85. The last two quarters saw a ~4% trimming.
Note: BHF is a spinoff of MetLife’s (MET) U.S. Retail business (annuities and life insurance) that started trading in July 2017.
CONSOL Energy (CEIX): CEIX is a large (top five) 6.29% of the portfolio position that came about as a result of the merger with Consol Coal Resources that closed in December 2020. Terms called for 0.73 shares of Consol Energy for each share of Consol Coal held. Greenlight had a position in Consol Coal for which they received these shares. There was a ~30% reduction in Q1 2021 at prices between ~$6.75 and ~$12.20. That was followed with a ~25% selling in Q2 2021 at prices between ~$8.75 and ~$18.70. The three quarters through Q4 2022 saw a ~23% net increase at prices between ~$35.50 and ~$77.50. There was another ~50% increase during Q1 2023 at prices between ~$51 and ~$64. Q3 2023 saw a ~16% selling at prices between ~$63 and ~$105 and that was followed by a ~12% trimming in the last quarter. The stake was decreased by 22% this quarter at prices between ~$76 and ~$105. CEIX currently trades at ~$100.
Note: they own ~5.3% of the business.
Tenet Healthcare (THC): THC is a 4.28% of the portfolio position purchased during Q4 2022 at a cost-basis of $48.61. There was a ~117% stake increase during Q1 2023 at prices between ~$49 and ~$62. The next quarter saw a one-third reduction at prices between ~$58 and ~$82. There was a ~45% stake increase in the last quarter at prices between ~$52.70 and ~$77. The stake was decreased by 32% this quarter at prices between ~$74 and ~$105. The stock currently trades at ~$135.
The ODP Corp. (ODP): ODP is a 4.15% of the portfolio position primarily built over the three quarters through Q4 2021 at prices between ~$36 and ~$50. There was a ~20% stake increase in Q2 2022 at prices between ~$29 and ~$46. The last two quarters also saw a ~15% stake increase. The stock currently trades at ~$39. There was a ~2% trimming this quarter.
Note: Greenlight’s cost-basis is ~$44.
Graphic Packaging Holding (GPK): The 2.40% stake in GPK saw a two-thirds increase during Q2 2023 at prices between ~$23.50 and ~$27. The last quarter saw a one-third further increase at prices between ~$20 and ~$25. The stake was decreased by 29% this quarter at prices between $24.26 and $29.18. The stock currently trades at $27.22.
SPDR Gold Trust (GLD): The 2.32% GLD stake was built in Q3 2020 at prices between $167 and $194. Q1 2021 saw a ~70% selling at prices between ~$158 and ~$183. H1 2022 had seen a ~140% stake increase at prices between ~$167 and ~$192. The next two quarters saw a ~24% reduction at prices between ~$151 and ~$170. Q3 2023 saw the position rebuilt at prices between ~$172 and ~$184. The stake was decreased by 36% this quarter at prices between ~$184 and ~$206. It currently trades at ~$220.
Weatherford (WFRD): The 1.68% of the portfolio position in WFRD was purchased in Q1 2022 at an average price of $32.27 and it is now at ~$111. Q4 2022 saw a ~22% reduction at prices between ~$32 and ~$51. That was followed by similar selling during Q2 2023 at prices between ~$56 and ~$66. The stake was decreased by 30% this quarter at prices between ~$85 and ~$119.
NET Power Inc. (NPWR): NPWR is a ~1% of the portfolio position purchased during Q2 2023 at a cost-basis of $10.10 per share. The stock currently trades at $9.65. The stake was decreased by 35% this quarter at prices between $7.85 and $11.67.
SPDR Aerospace & Defense (XAR) and Invesco Aerospace & Defense (PPA): These small (less than ~1% of the portfolio each) stakes were reduced during the quarter.
Kept Steady:
Teck Resources (TECK): TECK is a 3.20% of the portfolio position purchased in Q2 2020 at prices between $7 and $12.25. There was a ~40% stake increase in Q4 2020 at prices between ~$12.25 and ~$18.85 while next quarter there was a ~25% selling at prices between ~$18 and ~$23.75 The two quarters through Q3 2021 had seen a stake doubling at prices between ~$19.50 and ~$26.80. There was ~55% selling over the next three quarters at prices between ~$26 and ~$46. The three quarters through Q1 2023 saw a ~25% increase at prices between ~$26 and ~$44. The next quarter saw a ~45% reduction at prices between ~$36.50 and ~$49. The stock currently trades at $51.02.
Note: They have significant ownership stakes in the following businesses: Talis Bio (TLIS) and NeuBase Therapeutics (NBSE).
The spreadsheet below highlights changes to Greenlight’s 13F stock holdings in Q1 2024:
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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