Ethan Miller
Ethan Miller
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 2/14/2024. 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 Q3 2023.
Greenlight Capital’s 13F portfolio value increased from $1.76B to $2.05B this quarter. Einhorn’s Q4 2023 letter reported that the fund returned 22.1% for 2023 vs 26.3% for the S&P 500 Index. Since 1996 inception, Greenlight has returned ~13.1% annualized vs 9.5% annualized for S&P 500 index. In addition to partner stakes, the fund also invests the float of Greenlight Capital Re (NASDAQ:GLRE).
Alight Inc. (ALIT) and Viatris (VTRS): ALIT is a 3.85% of the portfolio stake established this quarter at prices between ~$6.50 and ~$8.60 and the stock currently trades at $9.05. The 1.77% VTRS position was purchased at prices between ~$8.75 and ~$11 and it now goes for $12.36.
Note: their cost-basis on ALIT was $7.98 and that of VTRS was $10.63.
AerCap Holdings (AER), SPDR S&P Aerospace & Defense ETF (XAR), Invesco Aerospace & Defense ETF (PPA), and Kenvue Inc. (KVUE): These small (less than ~1% of the portfolio each) stakes were established during the quarter.
Southwestern Energy (SWN): SWN was a 3.70% of the portfolio stake established in Q1 2022 at an average price of $6.58. There was a ~48% stake increase during Q3 2022 at prices between ~$5.60 and ~$8.10. That was followed by a similar increase in the next quarter at prices between ~$5.50 and ~$7.25. The last quarter also saw a ~10% stake increase. The disposal this quarter was at prices between ~$6 and ~$7.55. The stock currently trades at $6.96.
Note: the exit was roughly breakeven.
iShares Silver Trust (SLV): SLV was a 1.43% of the portfolio position established in Q3 2021 at prices between ~$20 and ~$24.50. There was a ~17% trimming during Q2 2023 and a marginal increase last quarter. The elimination this quarter was at prices between ~$19 and ~$23. The stock currently trades at $21.86.
Note: The exit was at a modest loss.
Activision Blizzard: Microsoft acquired Activision Blizzard in a $95 cash deal that closed in October thereby eliminating this stake.
Kyndryl Holdings (KD): KD is a 6.45% 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 $22.82. There was a ~50% selling during Q2 2023 at prices between ~$11.50 and ~$15 while in the last quarter there was a ~25% increase at prices between $12.22 and $16.92. This quarter also saw a ~14% stake increase.
Tenet Healthcare (THC): THC is a 4.86% 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 this quarter at prices between ~$52.70 and ~$77. The stock currently trades at $93.70.
The ODP Corp. (ODP): ODP is a 4.81% 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 $53.67.
Note: Greenlight’s cost-basis is ~$44.
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 $39.39. There was a ~9% stake increase last quarter and a ~6% increase this quarter.
LivaNova PLC (LIVN): The 3.11% 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 in the last quarter at prices between ~$50 and ~$59. This quarter also saw a minor ~3% increase. The stock is now at $55.85.
Graphic Packaging Holding (GPK): The ~3% stake in GPK saw a two-thirds increase during Q2 2023 at prices between ~$23.50 and ~$27. This quarter saw a one-third further increase at prices between ~$20 and ~$25. The stock currently trades at $25.50.
Weatherford International plc (WFRD): The 2.18% of the portfolio position in WFRD was purchased in Q1 2022 at an average price of $32.27 and it is now at ~$106. 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. There was a minor ~6% increase this quarter.
DHT Holdings (DHT) and Herc Holdings (HRI): The 1.81% DHT position was established last quarter at prices between $8.15 and $10.30. This quarter saw a ~87% stake increase at prices between ~$9.50 and ~$11.50. The stock currently trades at ~$11. HRI is a ~1% stake established last quarter at prices between ~$119 and ~$147 and it now goes for ~$169. There was a minor ~6% stake increase this quarter.
First Citizens BancShares (FCNCA): FCNCA is a 1.72% of the portfolio position purchased during Q1 2023 at prices between ~$509 and ~$973 and the stock currently trades well above that range at ~$1562. There was a ~10% increase in the last two quarters.
NET Power Inc. (NPWR): NPWR is a 1.48% of the portfolio position purchased during Q2 2023 at a cost-basis of $10.10 per share. The stock currently trades at $8.16. The last two quarters have seen a ~13% stake increase.
Gulfport Energy (GPOR): GPOR is 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. It is now at ~$143. The last quarter saw a minor ~2% trimming while this quarter there was a ~6% increase.
Seadrill Ltd. (SDRL): The 1.26% SDRL stake saw a ~50% stake increase this quarter at prices between ~$39 and ~$48. The stock currently trades at $44.58.
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 stock is now at $2.73. There was a ~6% stake increase this quarter.
First Horizon Corp. (FHN): The 0.95% stake in FHN saw a minor ~6% stake increase this quarter.
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. The last quarter 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 $51.85. This quarter also saw a ~8% trimming.
Note: They have a ~25% ownership stake in the business.
CONSOL Energy (CEIX): CEIX is a large (top three) 10.34% 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. The last quarter saw a ~16% selling at prices between ~$63 and ~$105 and that was followed by a ~12% trimming this quarter. CEIX currently trades at $90.26.
Note: they own ~6.8% of the business.
Brighthouse Financial (BHF): BHF is a large (top three) stake at ~8% 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 $45.61. This quarter saw a minor ~3% trimming.
Note: BHF is a spinoff of MetLife’s (MET) U.S. Retail business (annuities and life insurance) that started trading in July 2017.
SPDR Gold Trust (GLD): The 3.61% 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. The last quarter saw the position rebuilt at prices between ~$172 and ~$184. It currently trades at ~$196. There was a ~10% trimming this quarter.
Note: They have significant ownership stakes in the following businesses: Talis Bio (TLIS), NeuBase Therapeutics (NBSE), and Coya Therapeutics (COYA).
The spreadsheet below highlights changes to Greenlight’s 13F stock holdings in Q4 2023:
David Einhorn - Greenlight Capital Management Portfolio - Q4 2023 13F Report Q/Q Comparison (John Vincent (author))
Source: John Vincent. Data constructed from Greenlight Capital’s 13F filings for Q3 2023 and Q4 2023.