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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 13F regulatory form filed on 02/14/2023. please visit our Follow David Einhorn’s Greenlight Capital Holdings article Series for an idea on his investment philosophy and ours previous update for the movements of the fund in the third quarter of 2022.
Greenlight Capital’s 13F portfolio was valued at $1.44 billion this quarter. It’s up ~2% compared to $1.41 billion last quarter. Einhorn’s letter for the fourth quarter of 2022 reported that the fund had a terrific year: up 36.6% in 2022 versus down 18.1% for S&P. Since inception in 1996, Greenlight has produced an annualized return of ~12.8% versus 8.9% for the S&P 500 index. In addition to participations from partners, the fund also invests in the float of Greenlight Capital Re (NASDAQ:GLRE). To learn more about David Einhorn and the dangers of short selling, check out his “Fooling some of the people all along, long, short (and now full) story“.
Note: Your Q4 2022 letter contained the following in relation to Danimer Scientific (DNMR). They switched most of their position from common stock to converts in 2021. Later in 2022, they also increased the combined position when the stock plummeted.
New missions:
Tenet Healthcare (THC) and Gulfport Energy (GPOR): These are the new positions for this quarter. THC makes up 2.23% of the portfolio position, which was purchased at a cost basis of $48.61. The stock is currently trading at $61.20. GPOR accounts for a very small 0.64% of the portfolio portion built during the quarter.
Sale of shares:
Twitter Inc.: The large merger arbitrage interest was set up last August at a cost basis of ~$37. The stake was sold when the transaction closed at $54.20 per share last October.
Note: This merger arbitrage holding has been reported as the 3rd largest contributor to performance in 2022.
Intel Corp. (INTC): INTC accounted for 1.30% of the portfolio position bought last quarter at prices between ~$26 and ~$41. Sales were priced between ~$25 and ~$31 during the quarter. The stock is currently trading at $26.40.
Change healthcare: Change Healthcare represented 1.56% of the portfolio position, which was acquired in Q1 2020 at a cost basis of $11.40. In Q1 2021 there was a ~30% reduction at prices between ~$18.25 and ~$24 and has continued to sell since then. UnitedHealth (UNH) bought Change Healthcare in an all-cash deal closed last October.
Stake Increases:
CONSOL Energy (CEIX): CEIX is a large portion (top 3) of the portfolio holding at 8.16%, resulting from the merger with Consol Coal Resources that was completed in December. The terms provided for 0.73 Consol Energy shares for each Consol Coal share held. Greenlight had a position in Consol Coal for which they received these shares. In the first quarter of 2021 there was a ~30% reduction at prices between ~$6.75 and ~$12.20. This was followed by ~25% selling in Q2 2021 at prices ranging from ~$8.75 to ~$18.70. In the last three quarters there has been a net increase of ~23% with prices ranging from ~$35.50 to ~$77.50. CEIX is currently trading at $64.13.
Note: Greenlight’s Q4 2022 letter contained the following in relation to Consol Energy – expects CEIX to generate free cash flow equivalent to its market cap over the next two years.
Kyndryl Holdings (KD): KD is a large (top 5) 6.93% of portfolio position built over the past five quarters at prices between ~$8.25 and ~$41 and the stock now stands at $15.75.
Teck Resources (TECK): TECK is 5.86% of portfolio position bought in Q2 2020 at prices between $7 and $12.25. The stock is currently trading at ~$38. In the fourth quarter of 2020 there was a ~40% stake increase at prices between ~$12.25 and ~$18.85, while the next quarter sold ~25% at prices between ~$18 and ~$23.75. In the two quarters to Q3 2021, a share had doubled at prices between ~$19.50 and ~$26.80. Over the next three quarters, about 55% was sold at prices between about $26 and $46. There has been an increase of ~12% over the past two quarters.
Southwestern Energy (SWN): SWN is 3.64% portfolio interest formed in Q1 2022 at an average price of $6.58. The stock is currently trading at $5.67. Last quarter saw a ~48% increase in stake priced between ~$5.60 and ~$8.10. This was followed by a similar surge this quarter, priced between ~$5.50 and ~$7.25.
Global Payments (GPN): GPN now holds 3.25% of the portfolio stake. It was launched in Q4 2021 at prices ranging from ~$118 to ~$161. Greenlight’s cost basis is ~$126 per share. In the most recent quarter, the stake sold ~47% at prices ranging from ~$108 to ~$137. This quarter saw a ~73% share increase priced between ~$93 and ~$125. The stock is now at ~$113.
LivaNova AG (LIVN): The 3.22% portfolio stake in LIVN was built over the past six quarters at prices ranging from ~$44 to ~$92. The stock is now at ~$46.25. This quarter saw a slight ~3% increase in stake.
Galapagos NV (GLPG): The portfolio’s very small 0.48% stake in GLPG was up marginally this quarter. Greenlight’s cost basis was ~$53 per share and the stock is currently trading at $36.84.
Civitas Resources (CIVI) and Graphic Packaging Holding (GPK): These small holdings (less than ~2% of the portfolio each) were bought significantly this quarter. CIVI’s share increased by about two-thirds at prices ranging from ~$56 to ~$71 and is now at ~$73. GPK’s stake is up about 30% at prices between about $19.70 and about $23.50, and the stock now stands at $24.58.
Decreased Mission:
Brighthouse Financial (BHF): BHF is a large (top 3) holding at 11.34% of the portfolio. The position was established in Q3 2017 and increased ~60% in the following quarter at a total cost basis of $57.92. The stock currently stands at $58.45. In Q4 2018 ~70% was sold at prices between $29 and $46.50. Minor cuts have been made over the past five quarters.
Note: BHF is a US retail (pensions and life insurance) spin-off of MetLife (MET), which began trading in July 2017.
The ODP Corp. (ODP): ODP accounts for 5.21% of the portfolio position, which was built primarily over the three quarters ending Q4 2021 at prices between ~$36 and ~$50. The stock is currently trading at ~$50. In the second quarter of 2022, there was a ~20% share increase priced between ~$29 and ~$46. This quarter saw a slight cut of ~2%.
Note: Greenlight’s cost basis is ~$44.
Capri Holdings (CPRI): The 3.75% CPRI position was bought in 2021 at prices between ~$40.50 and ~$67. The first quarter of 2022 saw a ~12% cut while the next quarter saw a ~20% increase in share. The stock now stands at $49.78. Only minor adjustments were made in the last two quarters.
Note: Greenlight’s cost base is ~$56.
SPDR Gold Trust (GLD): GLD’s 2.46% stake was built in Q3 2020 at prices ranging from $167 to $194. In the first quarter of 2021, ~70% were sold at prices between ~$158 and ~$183. The first half of 2022 saw a ~140% share increase at prices ranging from ~$167 to ~$192. In the last two quarters there has been a ~24% drop with prices between ~$151 and ~$170. It is currently trading at ~$173.
iShares Silver Trust (SLV): SLV accounts for 2.32% of the portfolio position established in Q3 2021 at prices ranging from ~$20 to ~$24.50 and the stock is currently trading at $19.55. There was a slight ~2% cut this quarter.
Weatherford (WFRD): The ~2% of portfolio position in WFRD was bought in Q1 2022 at an average price of $32.27 and is now at $68.95. This quarter saw a ~22% discount with prices ranging from ~$32 to ~$51.
Resideo Technologies (REZI): The 1.68% stake in REZI was established in Q2 2020 at prices ranging from $3.95 to $12.50. The second half of 2020 saw a one-third increase at prices between ~$10 and ~$22.50, while the next quarter sold ~45% at prices between ~$21 and ~$31.50. This was followed by a ~15% cut in Q4 2021. In the next quarter, the stake increased ~30% at prices between ~$23 and ~$27. The stock now stands at $18.77. Only minor adjustments have been made in recent quarters.
Victoria’s Secret (VSCO): The ~1% interest in VSCO was built primarily in Q4 2021 at prices between ~$47 and ~$59. In the second quarter of 2022, there was a ~70% share increase priced between ~$28 and ~$51. The stock now stands at $35.78. This quarter saw a price reduction of approximately 40% with prices ranging from approximately $29 to approximately $48.
Note: VSCO is a Bath & Body Works (formerly L Brands) spinoff that was trading at ~$46 per share as of August 2021.
GoPro Inc (GPRO): GPRO’s 0.92% stake was built in H1 2021 at prices ranging from ~$7.50 to ~$13.50. Q4 2021 saw ~20% selling priced between ~$8.50 and ~$11.60. The stock is currently trading at $5.37. Marginal cuts were made in this quarter.
Concentrix Corp. (CNXC): The small CNXC position of 0.89% saw its stake rise ~150% last quarter at prices between ~$110 and ~$137. The stock is currently trading at ~$138. This quarter saw a ~13% cut.
Kept steady:
Green Brick Partners (GRBK): GRBK is currently the largest holding at ~28% of the 13F portfolio. The stake was acquired as a result of BioFuel Energy’s acquisition of JGBL Builder Finance and the rebranding transaction. The deal was completed (October 2014) with Greenlight owning 49% of the business. David Einhorn was appointed CEO following the transaction. During the first quarter of 2021, ~28% was sold at ~$20.50 per share through an underwritten offering. The stock is currently trading at ~$33. They own ~38% of the company.
Note: Your Q4 2022 letter contained the following in relation to GRBK. It underperformed due to the macro situation. They expect GRBK to do well in 2023 as the stock reprices to a fair multiple of its lows. The thesis is based on the favorable position of the property, the conservative balance sheet and the concentration of GRBK on low-cost cultivation areas.
The table below shows changes to Greenlight’s 13F stock holdings during Q4 2022:
David Einhorn – Q4 2022 13F Report Q/Q Comparison by Greenlight Capital (John Vincent (Author))
Editor’s note: This article covers one or more securities that are not traded on a major US exchange. Please be aware of the risks associated with these stocks.
