"Tracking David Einhorn’s Greenlight Capital Portfolio – Q4 2022 Update"
"David Einhorn's 13F stock portfolio value increased from $1.41B to $1.44B this quarter.Greenlight added Tenet Healthcare and increased Kyndryl Holdings, Southwestern Energy, and Global Payments during the quarter.The largest three positions are at ~48% of the portfolio. As of EOY 2022, the overall portfolio is 96% long and 56% short. The short portfolio was substantially reduced from 84% as of last quarter.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  filed on 2/14/2023. Please visit our  series for an idea on his investment philosophy and our  for the fund’s moves during Q3 2022.Greenlight Capital’s 13F portfolio value stood at $1.44B this quarter. It is up ~2% compared to $1.41B as of last quarter. Einhorn’s Q4 2022 letter reported that the fund had a stellar year: positive 36.6% in 2022 vs negative 18.1% for S&P.  Since 1996 inception, Greenlight has returned ~12.8% annualized vs 8.9% annualized for S&P 500 index. In addition to partner stakes, the fund also invests the float of Greenlight Capital RE (GLRE). To learn about David Einhorn and the perils of shorting, check-out his “”.Note: Their Q4 2022 letter had the following regarding Danimer Scientific (DNMR). They switched most of their position from common to converts in 2021. Later in 2022, they also increased the position in common as the stock crashed.New Stakes:Tenet Healthcare (THC) and Gulfport Energy (GPOR): These are the new positions this quarter. THC is a 2.23% of the portfolio position purchased at a cost-basis of $48.61. The stock currently trades at $61.20. GPOR is a very small 0.64% of the portfolio stake established during the quarter.Stake Disposals:Twitter Inc.: The large merger-arbitrage stake was established last August at a cost-basis of ~$37. The stake got disposed as the deal closed at $54.20 per share last October.Note: This merger-arbitrage stake was disclosed as the third largest contributor to 2022 performance.Intel Corp (INTC): INTC was a 1.30% of the portfolio position purchased last quarter at prices between ~$26 and ~$41. The disposal this quarter was at prices between ~$25 and ~$31. The stock currently trades at $26.40.Change Healthcare: Change Healthcare was a 1.56% of the portfolio position purchased in Q1 2020 at a cost-basis of $11.40. There was a ~30% reduction in Q1 2021 at prices between ~$18.25 and ~$24 and further selling since. UnitedHealth (UNH) bought Change Healthcare in a $25.75 all-cash deal that closed last October.Stake Increases:Consol Energy (CEIX): CEIX is a large (top three) 8.16% of the portfolio position that came about as a result of the merger with Consol Coal Resources that closed in December. 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. Last three quarters saw a ~23% net increase at prices between ~$35.50 and ~$77.50. CEIX currently trades at $64.13.Note: Greenlight’s Q4 2022 letter had the following regarding Consol Energy - expects CEIX to generate free-cash-flow equal to their market-cap over the next two years.Kyndryl Holdings (KD): KD is a large (top five) 6.93% of the portfolio position built over the last five quarters at prices between ~$8.25 and ~$41 and the stock is now at $15.75.Teck Resources (TECK): TECK is a 5.86% of the portfolio position purchased in Q2 2020 at prices between $7 and $12.25. The stock currently trades at ~$38. 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. Last two quarters have seen a ~12% increase.Southwestern Energy (SWN): SWN is a 3.64% of the portfolio stake established in Q1 2022 at an average price of $6.58. The stock currently trades at $5.67. There was a ~48% stake increase last quarter at prices between ~$5.60 and ~$8.10. That was followed with a similar increase this quarter at prices between ~$5.50 and ~$7.25.Global Payments (GPN): GPN is a now at 3.25% of the portfolio stake. It was established in Q4 2021 at prices between ~$118 and ~$161. Greenlight’s cost-basis is ~$126 per share. Last quarter saw the stake sold down by ~47% at prices between ~$108 and ~$137. There was a ~73% stake increase this quarter at prices between ~$93 and ~$125. The stock is now at ~$113.LivaNova plc (LIVN): The 3.22% of the portfolio stake in LIVN was built over the last six quarters at prices between ~$44 and ~$92. The stock is now at ~$46.25. There was a minor ~3% stake increase this quarter.Galapagos NV (GLPG): The very small 0.48% of the portfolio stake in GLPG saw a minor increase this quarter. Greenlight’s cost-basis was ~$53 per share and the stock currently trades at $36.84.Civitas Resources (CIVI) and Graphic Packaging Holding (GPK): These small (less than ~2% of the portfolio each) stakes saw substantial buying this quarter. The CIVI stake saw a roughly two-thirds increase at prices between ~$56 and ~$71 and it is now at ~$73. GPK stake saw a ~30% increase at prices between ~$19.70 and ~$23.50 and the stock is now at $24.58.Stake Decreases:Brighthouse Financial (BHF): BHF is a large (top three) stake at 11.34% 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. The stock is currently at $58.45. There was a ~70% selling in Q4 2018 at prices between $29 and $46.50. Last five quarters have seen minor trimming.Note: BHF is a spinoff of MetLife’s (MET) U.S. Retail business (annuities and life insurance) that started trading in July 2017.The ODP Corp (ODP): ODP is a 5.21% of the portfolio position primarily built over the three quarters through Q4 2021 at prices between ~$36 and ~$50. The stock currently trades at ~$50. There was a ~20% stake increase in Q2 2022 at prices between ~$29 and ~$46. This quarter saw a minor ~2% trimming.Note: Greenlight’s cost-basis is ~$44.Capri Holdings (CPRI): The 3.75% 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. The stock is now at $49.78. Last two quarters saw only minor adjustments.Note: Greenlight’s cost-basis is ~$56.SPDR Gold Trust (GLD): The 2.46% 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. Last two quarters saw a ~24% reduction at prices between ~$151 and ~$170. It currently trades at ~$173.iShares Silver Trust (SLV): SLV is a 2.32% of the portfolio position established in Q3 2021 at prices between ~$20 and ~$24.50 and the stock currently trades at $19.55. There was a minor ~2% trimming this quarter.Weatherford plc (WFRD): The ~2% of the portfolio position in WFRD was purchased in Q1 2022 at an average price of $32.27 and it is now at $68.95. This quarter saw a ~22% reduction at prices between ~$32 and ~$51.Resideo Technologies (REZI): The 1.68% REZI stake was established in Q2 2020 at prices between $3.95 and $12.50. H2 2020 had seen a one-third increase at prices between ~$10 and ~$22.50 while 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. The stock is now at $18.77. Last few quarters have seen only minor adjustments.Victoria’s Secret (VSCO): The ~1% stake in VSCO was primarily built in Q4 2021 at prices between ~$47 and ~$59. There was a ~70% stake increase in Q2 2022 at prices between ~$28 and ~$51. The stock is now at $35.78. This quarter saw a ~40% reduction at prices between ~$29 and ~$48.Note: VSCO is a spinoff from Bath & Body Works (previously L Brands) that started trading in August 2021 at ~$46 per share.GoPro Inc. (GPRO): The 0.92% 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 $5.37. This quarter saw marginal trimming.Concentrix Corp (CNXC): The small 0.89% CNXC position saw a ~150% stake increase last quarter at prices between ~$110 and ~$137. The stock currently trades at ~$138. This quarter saw a ~13% trimming.Kept Steady:Green Brick Partners (GRBK): GRBK is currently the largest position at ~28% 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 ~$33. They own ~38% of the business.Note: Their Q4 2022 letter had the following regarding GRBK. It underperformed due to the macro situation. They expect GRBK to perform well in 2023 as the stock rerates to a fair multiple of trough earnings. The thesis is based on GRBK’s favorable land position, conservative balance sheet, and concentration in low-cost growing areas.The spreadsheet below highlights changes to Greenlight’s 13F stock holdings in Q4 2022:Source: John Vincent. Data constructed from Greenlight Capital’s 13F filings for Q3 2022 and Q4 2022.Info from Q3 2022 Letter – Performance – positive 17.7% in YTD through Q3 2022 vs negative 23.87% for S&P. ~12.3% annualized since 1996 inception. Commentary – our pivot in January from ‘cautious’ to ‘bearish’ helped performance. POSTURE: bullish on inflation and bearish on stocks.  AAWW – exited after 102.50 buyout announcement – 80% IRR over two year period. GRBK – added to S&P smallcap index – housing market/mortgages hurting – hedged with a basket of housing sensitive equities. GRBK has outperformed peers because of its superior competitive position. CEIX – Still Expects them to generate $50 after-tax free cash flow by end of 2023. First dividend of $1 in August. 2024 might be another strong year. Short Eurodollar since January – market expectations for rate hikes match their own now and so exited. TWTR – expects deal to close at or near $54.20. BHF – At $41.02, 25% of BV and 3x earnings. Expects 10-20% repurchase this year. Gold – concerned that the current inflation problem might evolve into a currency and/or sovereign debt crisis – so, maintaining gold exposure. TECK – At $30.57, 85% of BV and 4x earnings. Also starting buybacks. The CEO said “I’d like to buy the whole company back myself” . Short Portfolio – not much comment. Winners: . Detractors:  .   New Positions: None other than TWTR. Expects we are in a bear market – “buy-the-dip” may no longer work – continuing to build dry powder. Thinks fed wants to deflate market. Fed policy mistake – supply and demand difference is not really the cause of inflation – productive investments rather than policies for demand destructions is what is required Exits: Change Healthcare (42% IRR over 32-month holding period), Chemours (concerned about deteriorating economic cycle – exited with 3-year mid-single digit IRR), International Seaways (exited with 40% gain over half a year holding period), Playboy (50% loss – corporate transformation failure), and Warner Brothers Discovery (40% loss in half a year – more challenging path to executing integration plan). Exposure - 94% long and 84% short.  Largest Long Positions –Brighthouse Financial, CONSOL Energy, Green brick Partners, Teck Resources, and TwitterRegulatory filings from 9/4/2022 to 12/22/2022: ."