Tracking David Einhorn’s Greenlight Capital Portfolio – Q2 2023 Update

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 8/14/2023. 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 Q1 2023.

Greenlight Capital’s 13F portfolio value stood at $2.13B this quarter. It is up ~16% compared to $1.84B as of last quarter. Einhorn’s Q2 2023 letter reported that the fund returned 14.5% for Q2 2023 vs 8.7% for the S&P 500 Index. Since 1996 inception, Greenlight has returned ~12.6% annualized vs 9.1% 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:

NET Power Inc. (NPWR): NPWR is a 1.53% of the portfolio position purchased this quarter at a cost-basis of $10.10 per share. The stock currently trades at $15.58.

Activision Blizzard (ATVI), First Horizon Corp (FHN), and Seadrill Ltd. (SDRL): These are very small (less than ~1% of the portfolio each) new stakes established this quarter.

Stake Disposals:

Global Payments (GPN): GPN was a 3.43% of the portfolio stake. It was established in Q4 2021 at prices between ~$118 and ~$161. Q3 2022 saw the stake sold down by ~47% at prices between ~$108 and ~$137. There was a ~120% stake increase in the last two quarters at prices between ~$93 and ~$125. The disposal this quarter was at prices between ~$96 and ~$113. The stock is now at ~$126.

Note: Greenlight’s Q2 2023 letter mentioned a ~6% IRR on this holding. They exited as they were uncomfortable with the company’s increasingly large adjustments to reported numbers and an abrupt CEO change.

Civitas Resources (CIVI): The 1.70% CIVI stake saw a roughly two-thirds increase during Q4 2022 at prices between ~$56 and ~$71, and it is now at $85.24. The position was sold this quarter at prices between ~$65 and ~$74.

Note: The investment had a ~35% IRR. The stake came about through purchasing distressed debt of Extraction Oil & Gas before its bankruptcy in June 2020.

Concentrix Corp (CNXC): The small 1.37% CNXC position saw a ~150% stake increase during Q3 2022 at prices between ~$110 and ~$137. That was followed with a ~115% increase this quarter at prices between ~$118 and ~$151. The disposal this quarter was at prices between ~$81 and ~$122. The stock currently trades at ~$72.

Stake Increases:

CONSOL Energy (CEIX): CEIX is a large (top three) ~9% 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 last quarter at prices between ~$51 and ~$64. This quarter also saw a minor ~5% further increase. CEIX currently trades at ~$93.

Black Knight Inc. (BKI): BKI was a merger-arbitrage stake established last quarter at a cost-basis of $60.59. Intercontinental Exchange (ICE) acquired them for a $75 per share cash-and-stock deal that closed last week.

Capri Holdings (CPRI): The 2.77% CPRI position was purchased in 2021 at prices between ~$40.50 and ~$67. Q1 2022 saw a ~12% trimming, while next quarter there was a ~20% stake increase. That was followed by a ~75% increase in the last two quarters at prices between ~$34 and ~$68. The stock is now at $52.78.

Southwestern Energy (SWN): SWN is a 2.60% of the portfolio stake established in Q1 2022 at an average price of $6.58. The stock currently trades at $6.66. 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 two quarters saw only minor adjustments.

Graphic Packaging Holding (GPK): The small ~2% stake in GPK saw a two-thirds increase this quarter at prices between ~$23.50 and ~$27. The stock currently trades at $22.10.

Stake Decreases:

Tenet Healthcare (THC) and Gulfport Energy (GPOR): THC is a 3.56% of the portfolio position purchased during Q4 2022 at a cost-basis of $48.61. The stock currently trades at $74.73. There was a ~117% stake increase last quarter at prices between ~$49 and ~$62. This quarter saw a one-third reduction at prices between ~$58 and ~$82. GPOR is a ~1% of the portfolio stake built in the last two quarters at prices between ~$61 and ~$97. It is now at ~$121. There was a ~25% selling this quarter at prices between ~$76 and ~$108.

The ODP Corp (ODP): ODP is a 3.33% of the portfolio position, primarily built over the three quarters through Q4 2021 at prices between ~$36 and ~$50. The stock currently trades at ~$48. There was a ~20% stake increase in Q2 2022 at prices between ~$29 and ~$46. The last three quarters saw minor trimming.

Note: Greenlight’s cost-basis is ~$44.

Kyndryl Holdings (KD): KD is a 2.77% 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 ~$17. There was a ~50% selling this quarter at prices between ~$11.50 and ~$15.

Teck Resources (TECK): TECK is a 2.66% 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 last three quarters had seen a ~25% increase at prices between ~$26 and ~$44. This quarter saw a ~45% reduction at prices between ~$36.50 and ~$49. The stock currently trades at $40.31.

Weatherford International plc (WFRD): The 1.35% of the portfolio position in WFRD was purchased in Q1 2022 at an average price of $32.27, and it is now at ~$94. Q4 2022 saw a ~22% reduction at prices between ~$32 and ~$51. That was followed by similar selling this quarter at prices between ~$56 and ~$66.

iShares Silver Trust (SLV): SLV is a 1.21% of the portfolio position established in Q3 2021 at prices between ~$20 and ~$24.50 and the stock currently trades at ~$21. There was a ~17% trimming this quarter.

New York Community Bancorp (NYCB): The 0.90% NYCB stake was established last quarter at prices between ~$6.40 and ~$10.40. It was sold down by ~25% this quarter at prices between ~$8.50 and ~$11. The stock is now at $11.88.

Resideo Technologies (REZI): The 0.65% REZI stake was established in Q2 2020 at prices between $3.95 and $12.50. H2 2020 saw a one-third increase at prices between ~$10 and ~$22.50 while the next quarter saw a ~45% selling at prices between ~$21 and ~$31.50. That was followed with a ~15% trimming in Q4 2021. Next quarter saw a ~30% stake increase at prices between ~$23 and ~$27. There was a two-thirds reduction in the last two quarters at prices between ~$16 and ~$20. The stock is now at ~$16.

Kept Steady:

Green Brick Partners (GRBK): GRBK is currently the largest position at ~44% 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 stock currently trades at $45.61.

Note: Regulatory filings since the quarter ended show them owning ~13.1M shares (~29% of the business). This is compared to 16.6M shares in the 13F report. The reduction was primarily due to in-kind distributions to redeeming shareholders, rather than actual sales in the open market.

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 $49.69.

Note: BHF is a spinoff of MetLife’s (MET) U.S. Retail business (annuities and life insurance) that started trading in July 2017.

LivaNova PLC (LIVN): The 2.50% of the portfolio stake in LIVN was built over the six quarters through Q3 2022 at prices between ~$44 and ~$92. The stock is now at $53.64. There was a ~23% stake increase last quarter at prices between ~$41 and ~$58.

SPDR Gold Trust (GLD): The 1.91% 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. It currently trades at ~$178.

First Citizens BancShares (FCNCA): FCNCA is a small 1.36% of the portfolio position purchased last quarter at prices between ~$509 and ~$973 and the stock currently trades well above that range at ~$1327.

GoPro Inc. (GPRO): The 0.50% GPRO stake was built over H1 2021 at prices between ~$7.50 and ~$13.50. There was a ~20% selling in Q4 2021 at prices between ~$8.50 and ~$11.60. The stock currently trades at $3.44.

The spreadsheet below highlights changes to Greenlight’s 13F stock holdings in Q2 2023:

Source: John Vincent. Data constructed from Greenlight Capital’s 13F filings for Q1 2023 and Q2 2023.