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

This text is a part of a sequence that gives an ongoing evaluation of the modifications made to David Einhorn’s Greenlight Capital 13F portfolio on a quarterly foundation. It’s based mostly on Einhorn’s regulatory 13F Form filed on 8/14/2023. Please go to our Monitoring David Einhorn’s Greenlight Capital Holdings article sequence for an concept on his funding philosophy and our earlier replace for the fund’s strikes throughout Q1 2023.

Greenlight Capital’s 13F portfolio worth stood at $2.13B this quarter. It’s up ~16% in comparison with $1.84B as of final 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. Along with associate stakes, the fund additionally invests the float of Greenlight Capital Re (NASDAQ:GLRE). To study 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 Energy Inc. (NPWR): NPWR is a 1.53% of the portfolio place bought this quarter at a cost-basis of $10.10 per share. The inventory presently trades at $15.58.

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

Stake Disposals:

International Funds (GPN): GPN was a 3.43% of the portfolio stake. It was established in This autumn 2021 at costs between ~$118 and ~$161. Q3 2022 noticed the stake bought down by ~47% at costs between ~$108 and ~$137. There was a ~120% stake improve within the final two quarters at costs between ~$93 and ~$125. The disposal this quarter was at costs between ~$96 and ~$113. The inventory is now at ~$126.

Notice: Greenlight’s Q2 2023 letter talked about a ~6% IRR on this holding. They exited as they have been uncomfortable with the corporate’s more and more giant changes to reported numbers and an abrupt CEO change.

Civitas Sources (CIVI): The 1.70% CIVI stake noticed a roughly two-thirds improve throughout This autumn 2022 at costs between ~$56 and ~$71, and it’s now at $85.24. The place was bought this quarter at costs between ~$65 and ~$74.

Notice: The funding had a ~35% IRR. The stake took place by means of buying distressed debt of Extraction Oil & Gasoline earlier than its chapter in June 2020.

Concentrix Corp (CNXC): The small 1.37% CNXC place noticed a ~150% stake improve throughout Q3 2022 at costs between ~$110 and ~$137. That was adopted with a ~115% improve this quarter at costs between ~$118 and ~$151. The disposal this quarter was at costs between ~$81 and ~$122. The inventory presently trades at ~$72.

Stake Will increase:

CONSOL Power (CEIX): CEIX is a big (prime three) ~9% of the portfolio place that took place because of the merger with Consol Coal Sources that closed in December 2020. Phrases referred to as for 0.73 shares of Consol Power for every share of Consol Coal held. Greenlight had a place in Consol Coal for which they acquired these shares. There was a ~30% discount in Q1 2021 at costs between ~$6.75 and ~$12.20. That was adopted with a ~25% promoting in Q2 2021 at costs between ~$8.75 and ~$18.70. The three quarters by means of This autumn 2022 noticed a ~23% internet improve at costs between ~$35.50 and ~$77.50. There was one other ~50% improve final quarter at costs between ~$51 and ~$64. This quarter additionally noticed a minor ~5% additional improve. CEIX presently trades at ~$93.

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

Capri Holdings (CPRI): The two.77% CPRI place was bought in 2021 at costs between ~$40.50 and ~$67. Q1 2022 noticed a ~12% trimming, whereas subsequent quarter there was a ~20% stake improve. That was adopted by a ~75% improve within the final two quarters at costs between ~$34 and ~$68. The inventory is now at $52.78.

Southwestern Power (SWN): SWN is a 2.60% of the portfolio stake established in Q1 2022 at a median value of $6.58. The inventory presently trades at $6.66. There was a ~48% stake improve throughout Q3 2022 at costs between ~$5.60 and ~$8.10. That was adopted by an analogous improve within the subsequent quarter at costs between ~$5.50 and ~$7.25. The final two quarters noticed solely minor changes.

Graphic Packaging Holding (GPK): The small ~2% stake in GPK noticed a two-thirds improve this quarter at costs between ~$23.50 and ~$27. The inventory presently trades at $22.10.

Stake Decreases:

Tenet Healthcare (THC) and Gulfport Power (GPOR): THC is a 3.56% of the portfolio place bought throughout This autumn 2022 at a cost-basis of $48.61. The inventory presently trades at $74.73. There was a ~117% stake improve final quarter at costs between ~$49 and ~$62. This quarter noticed a one-third discount at costs between ~$58 and ~$82. GPOR is a ~1% of the portfolio stake constructed within the final two quarters at costs between ~$61 and ~$97. It’s now at ~$121. There was a ~25% promoting this quarter at costs between ~$76 and ~$108.

The ODP Corp (ODP): ODP is a 3.33% of the portfolio place, primarily constructed over the three quarters by means of This autumn 2021 at costs between ~$36 and ~$50. The inventory presently trades at ~$48. There was a ~20% stake improve in Q2 2022 at costs between ~$29 and ~$46. The final three quarters noticed minor trimming.

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

Kyndryl Holdings (KD): KD is a 2.77% of the portfolio place constructed over the 5 quarters by means of This autumn 2022 at costs between ~$8.25 and ~$41 and the inventory is now at ~$17. There was a ~50% promoting this quarter at costs between ~$11.50 and ~$15.

Teck Sources (TECK): TECK is a 2.66% of the portfolio place bought in Q2 2020 at costs between $7 and $12.25. There was a ~40% stake improve in This autumn 2020 at costs between ~$12.25 and ~$18.85 whereas subsequent quarter there was a ~25% promoting at costs between ~$18 and ~$23.75. The 2 quarters by means of Q3 2021 had seen a stake doubling at costs between ~$19.50 and ~$26.80. There was ~55% promoting over the following three quarters at costs between ~$26 and ~$46. The final three quarters had seen a ~25% improve at costs between ~$26 and ~$44. This quarter noticed a ~45% discount at costs between ~$36.50 and ~$49. The inventory presently trades at $40.31.

Weatherford Worldwide plc (WFRD): The 1.35% of the portfolio place in WFRD was bought in Q1 2022 at a median value of $32.27, and it’s now at ~$94. This autumn 2022 noticed a ~22% discount at costs between ~$32 and ~$51. That was adopted by comparable promoting this quarter at costs between ~$56 and ~$66.

iShares Silver Belief (SLV): SLV is a 1.21% of the portfolio place established in Q3 2021 at costs between ~$20 and ~$24.50 and the inventory presently trades at ~$21. There was a ~17% trimming this quarter.

New York Group Bancorp (NYCB): The 0.90% NYCB stake was established final quarter at costs between ~$6.40 and ~$10.40. It was bought down by ~25% this quarter at costs between ~$8.50 and ~$11. The inventory is now at $11.88.

Resideo Applied sciences (REZI): The 0.65% REZI stake was established in Q2 2020 at costs between $3.95 and $12.50. H2 2020 noticed a one-third improve at costs between ~$10 and ~$22.50 whereas the following quarter noticed a ~45% promoting at costs between ~$21 and ~$31.50. That was adopted with a ~15% trimming in This autumn 2021. Subsequent quarter noticed a ~30% stake improve at costs between ~$23 and ~$27. There was a two-thirds discount within the final two quarters at costs between ~$16 and ~$20. The inventory is now at ~$16.

Stored Regular:

Inexperienced Brick Companions (GRBK): GRBK is presently the biggest place at ~44% of the 13F portfolio. The stake was acquired because of BioFuel Power’s JGBL Builder Finance acquisition and rename transaction. The deal closed (October 2014) with Greenlight proudly owning 49% of the enterprise. David Einhorn was appointed Chairman of the Board following the transaction. Q1 2021 noticed a ~28% promoting at ~$20.50 per share by means of an underwritten providing. The inventory presently trades at $45.61.

Notice: Regulatory filings for the reason that quarter ended present them proudly owning ~13.1M shares (~29% of the enterprise). That is in comparison with 16.6M shares within the 13F report. The discount was primarily attributable to in-kind distributions to redeeming shareholders, moderately than precise gross sales within the open market.

Brighthouse Monetary (BHF): BHF is a big (prime three) stake at ~7% of the portfolio. The place was established in Q3 2017 and elevated by ~60% within the following quarter at an total cost-basis of $57.92. There was a ~70% promoting in This autumn 2018 at costs between $29 and $46.50. The inventory is presently at $49.69.

Notice: BHF is a by-product of MetLife’s (MET) U.S. Retail enterprise (annuities and life insurance coverage) that began buying and selling in July 2017.

LivaNova PLC (LIVN): The two.50% of the portfolio stake in LIVN was constructed over the six quarters by means of Q3 2022 at costs between ~$44 and ~$92. The inventory is now at $53.64. There was a ~23% stake improve final quarter at costs between ~$41 and ~$58.

SPDR Gold Belief (GLD): The 1.91% GLD stake was inbuilt Q3 2020 at costs between $167 and $194. Q1 2021 noticed a ~70% promoting at costs between ~$158 and ~$183. H1 2022 had seen a ~140% stake improve at costs between ~$167 and ~$192. The subsequent two quarters noticed a ~24% discount at costs between ~$151 and ~$170. It presently trades at ~$178.

First Residents BancShares (FCNCA): FCNCA is a small 1.36% of the portfolio place bought final quarter at costs between ~$509 and ~$973 and the inventory presently trades effectively above that vary at ~$1327.

GoPro Inc. (GPRO): The 0.50% GPRO stake was constructed over H1 2021 at costs between ~$7.50 and ~$13.50. There was a ~20% promoting in This autumn 2021 at costs between ~$8.50 and ~$11.60. The inventory presently trades at $3.44.

The spreadsheet under highlights modifications to Greenlight’s 13F inventory holdings in Q2 2023:

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