"Tracking David Einhorn’s Portfolio – Q2 2021 Update"
"David Einhorn's 13F stock portfolio value increased from $1.44B to $1.59B this quarter.Greenlight increased Teck Resources, GoPro, and The ODP Corp while reducing APi Group, CNX Resources, and Katapult Holdings during the quarter. They also dropped ADT Inc. and Alight Inc.The largest three positions are at ~42% of the portfolio. As of Q2 2021, the overall portfolio is 127% long and 68% short.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 8/16/2021. Please visit our  series for an idea on his investment philosophy and our  for the fund’s moves during Q1 2021.Greenlight Capital’s 13F portfolio value stood at $1.59B this quarter. It is up ~11% compared to $1.44B as of last quarter. Einhorn’s Q2 2021 letter reported that the fund returned negative 2.9% for Q2 2021. This is compared to 8.5% for the 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 1: Greenlight’s Q2 2021 letter was focused on their inflation thesis. Basically, they believe inflation will not be a transitory phenomenon. The following stakes were identified as positions that should benefit: Green Brick Partners (GRBK), Atlas Air Worldwide (AAWW,) Teck Resources (TECK), Chemours (CC), Consol Energy (CEIX), and Graphics Packaging (GPK).Note 2: Greenlight also has several minutely small stakes primarily in SPAC units, shares, and warrants.New Stakes:SPDR S&P 500 ETF (SPY), PLBY Group (PLBY), Graphic Packaging Holding (GPK), Soaring Eagle Acquisition (SRNG) & Units, and New Corp (NWS): These are small new stakes established this quarter. Mountain Crest Acquisition merged with PLBY in a De-SPAC transaction that closed in February. The stock traded between ~$20 and ~$60 during the quarter and currently goes for $27.17. Soaring Eagle Acquisition announced a SPAC merger with Gingko Bioworks at a ~$15B valuation and the transaction is set to close this month.Stake Disposals:ADT Inc. (ADT): The 1.64% ADT stake was built over the last two quarters at prices between ~$6.60 and ~$10.25. The disposal this quarter was at prices between ~$8.50 and ~$11.50. The stock currently trades at $8.73.Alight Inc. (ALIT): Foley Trasimene Acquisition merged with Alight in a De-SPAC transaction that closed in July. Greenlight established this position last quarter when it traded between ~$9.95 and ~$12.90. The disposal this quarter was at prices between ~$9.75 and ~$10.65. The stock is now at $11.79.Stake Increases:Teck Resources (TECK): TECK is a 3.10% of the portfolio position purchased in Q2 2020 at prices between $7 and $12.25. The stock has doubled and currently trades at $24.62. There was a ~40% stake increase in Q4 2020 at prices between ~$12.25 and ~$18.85 while last quarter there was a ~25% selling at prices between ~$18 and ~$23.75. This quarter saw a ~75% stake increase at prices between ~$19.50 and ~$26.25.Note: David Einhorn pitched Teck Resources at Sohn Conference in May.Chemours (CC): CC is a ~5% of the portfolio position established in Q2 2019 at a cost-basis of $23.18. Next quarter saw a ~75% stake increase at prices between $12 and $23. The stock is currently at $33.37. Last five quarters had seen a two-thirds reduction at prices between ~$7 and ~$28.75. This quarter saw a minor ~5% stake increase.Note: Greenlight had a very successful (4x returns) previous roundtrip with Chemours in the two-year period that ended in Q1 2018.GoPro Inc. (GPRO) and Capri Holdings (CPRI): These two stakes established last quarter were increased this quarter. The 2.68% GPRO stake was built at prices between ~$7.50 and ~$13.50 and the stock currently trades at $9.91. The 1.77% CPRI position was purchased at prices between ~$40.50 and ~$59.50 and it is now at $56.71.Resideo Technologies (REZI): The 2.68% 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 last quarter saw a ~45% selling at prices between ~$21 and ~$31.50. There was a minor ~3% stake increase this quarter. The stock is now at $31.91.The ODP Group (ODP): ODP is a ~2% of the portfolio position primarily built this quarter at prices between ~$38.70 and ~$50. The stock currently trades at $45.56.Echostar Corp (SATS): The 1.70% SATS position was built over the last three quarters at prices between ~$19.95 and ~$28.70 and it is now at $26.28.FuboTV (FUBO): FUBO had an IPO last October. Shares started trading at ~$12 and currently goes for $29.97. Greenlight’s stake goes back to earlier funding rounds and their cost-basis is ~$5 per share. Last quarter saw the stake reduced by roughly two-thirds at prices between ~$21 and ~$52.40. There was a ~10% stake increase this quarter and the stake is now at 0.95% of the portfolio.Joby Aviation (JOBY): Reinvent Technology Partners merged with Joby Aviation in a De-SPAC transaction that closed in August. Greenlight built the small 0.91% stake over the last two quarters at prices between ~$10 and ~$15.70. The stock currently trades at $10.16.Neubase Therapeutics (NBSE): NBSE is a small ~1% of the portfolio position established in Q3 2019 at an average cost of $3.96. Q2 2020 saw a ~25% stake increase at prices between $6.70 and $11.51. That was followed with another one-third increase this quarter at prices between $4.60 and $9.30. The stock currently trades at $3.86. Greenlight controls ~11% of NBSE.Sonos Inc. (SONO): The very small 0.52% stake in SONO was increased by ~15% this quarter.Stake Decreases:Concentrix (CNXC): CNXC is a spinoff from SYNNEX Corporation that started trading in December. Terms called for SYNNEX shareholders to get one share of CNXC for each share held. Greenlight had a position in SYNNEX for which they received these shares. The stock started trading at ~$80 and currently goes for ~$174. Last quarter saw a ~40% stake increase at prices between ~$100 and ~$150 while this quarter there was a ~18% trimming at prices between ~$149 and ~$160.Danimer Scientific (DNMR): The 3.31% of the portfolio DNMR stake came about following the ~$700M EV De-SPAC transaction with Live Oak Acquisition that closed in December. Greenlight’s stake goes back to earlier funding rounds done a year ago. There was a ~25% stake increase last quarter at prices between ~$22 and ~$64. DNMR currently trades at $20.56. This quarter saw a ~2% trimming.Note: The stock dropped sharply in early May following a short report by Spruce Point Capital.Consol Energy (CEIX): CEIX is a 2.51% 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 last quarter at prices between ~$6.75 and ~$12.20. That was followed with a ~25% selling this quarter at prices between ~$8.75 and ~$18.70. CEIX currently trades at $24.39.Note: Greenlight has a ~6% ownership stake in Consol Energy.Jack in the Box (JACK): JACK is a ~1% position purchased in Q2 2020 at prices between $32 and $73. There was a ~40% selling in Q4 2020 at prices between ~$80 and ~$95 while last quarter saw a similar increase at prices between ~$91 and ~$117. This quarter saw a ~22% selling at prices between ~$109 and ~$123. The stock currently goes for ~$105APi Group (APG): APG is now a minutely small 0.33% of the portfolio position. The stake was doubled last quarter at prices between ~$17 and ~$21.50 while this quarter there was a ~80% selling at prices between ~$19 and ~$23. The stock is now at $23.40.CNX Resources (CNX): CNX is now a minutely small 0.19% stake. It was first purchased in Q3 2014 and built up over the next several quarters. The three quarters thru Q4 2016 had seen a ~50% combined reduction at prices between $8 and $19. The pattern reversed in Q1 2017: ~50% increase at prices between $12 and $16.50. The four quarters thru Q4 2018 had seen a ~80% selling at prices between $11 and $18. Q1 2019 saw the pattern reverse again: two-thirds increase at prices between $9.75 and $13.50. Q1 2020 saw another ~25% stake increase at prices between $5 and $9 while next quarter there was a ~60% selling at prices between $5.50 and $12.95. Last two quarters have seen the stake almost sold out at prices between ~$11 and ~$15.60. The stock currently trades at $11.93.Note: The prices quoted above are adjusted for the spinoff of Consol Energy (CEIX) in November 2017.Katapult Holdings (KPLT), Extraction Oil & Gas (XOG), and SYNNEX Corporation (SNX): These are very small (less than ~1% of the portfolio each) stakes that were reduced this quarter.Kept Steady:Green Brick Partners (GRBK): GRBK is currently the largest position at ~25% 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. Last quarter saw a ~28% selling at ~$20.50 per share through an underwritten offering. They still own just over one-third of the business. The stock currently trades at $24.67.Note: The Q1 2021 commentary said they are still bullish on the position. Despite being the largest stake by a wide margin, they are comfortable with the current sizing of the position as well.Brighthouse Financial (BHF): BHF is a large (top three) stake at 10.41% 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 $48.65. There was a ~70% selling in Q4 2018 at prices between $29 and $46.50.Note: BHF is a spinoff of MetLife’s (MET) U.S. Retail business (annuities and life insurance) that started trading in July 2017.Atlas Air Worldwide (AAWW): AAWW is a large top three 6.48% of the portfolio stake established in Q2 2020 at an average price of $36.28 per share. The stock has doubled and currently trades at $73.57. Q4 2020 saw a ~15% stake increase at prices between $51.28 and $68.20 while last quarter saw similar trimming at prices between ~$51 and ~$62.Note: Greenlight controls ~5.5% of the business.Change Healthcare (CHNG): CHNG is large ~5% of the portfolio position purchased in Q1 2020 at a cost-basis of $11.40. The stock currently trades at $22.12. There was a ~30% reduction last quarter at prices between ~$18.25 and ~$24.Note: UnitedHealth (UNH) is buying Change Healthcare in a $25.75 all-cash deal announced in January.AerCap Holdings N.V. (AER): AER is currently a 2.14% position. It was established in Q2 2014 at prices between $39 and $48. Q4 2014 thru Q3 2015 saw a combined ~270% increase at prices between $36.50 and $48.50. First three quarters of 2016 had also seen another ~70% increase at prices between $25.50 and $42. The four quarters thru Q3 2018 saw the stake reduced by ~70% at prices between $49 and $57.50. Last three quarters had seen another ~80% selling at prices between ~$23 and ~$61. The stock currently trades at $53.96.Twitter Inc. (TWTR): The 2.11% TWTR stake was purchased in Q3 2020 at prices between $31 and $45 and the stock is now at $64.66.SPDR Gold Trust (GLD): The ~1% GLD stake was built in Q3 2020 at prices between $167 and $194. Last quarter saw a ~70% selling at prices between ~$158 and ~$183. It currently trades at ~$171.Offerpad (OPAD) and Gain Therapeutics (GANX): These two small (less than ~1% of the portfolio each) stakes were kept steady this quarter. Supernova merged with Offerpad in a ~$2.4B EV deal that closed last week.The spreadsheet below highlights changes to Greenlight’s 13F stock holdings in Q2 2021:Source: John Vincent. Data constructed from Greenlight Capital’s 13F filings for Q1 2021 and Q2 2021.Info from Q4 2020 Letter – 1/21/2021  – Performance – -0.1% in Q1 2021 vs 6.2% for S&P. ~12.2% annualized since 1996 inception., Commentary – Expects inflation to pick up and sees that as a tail-wind to their portfolio. Most of their longs performed strongly and a healthcare (undisclosed short) also did well. Performance held back by GRBK which they sold at a discount in an underwritten offering – that increased supply caused some underperformance – although largest, still comfortable with sizing – earned $2.23 in 2020 and sees growth due to housing-boom being in the early stages of a multi-year trend. Short portfolio is still not performing – this quarter, they were affected by individual shorts that saw sudden spikes – working on overhauling the area including the incentive structure of the analysts involved. Chamath accused - Mr. Palihapitiya controls SoFi, which competes with Robinhood, and left us with the impression that by destabilizing GME he could harm a competitor. Also call-out on penny stock manipulation and Hometown Intl. (HWIN). Also, Tether – not enough backing – the $18.5M penalty is like a light slap in the wrist. GSX Techedu – obvisouly Archegos and a small group of other funds cornered the market but SEC looked sideways on that market manipulation. Basically, all points to lax SEC fraud prosecution and seems to say they are being backed by some entities.   Exposure - 118% long and 81% short , Largest Long Positions –Atlas Air Worldwide, Brighthouse Financial, Change Healthcare, Danimer Scientific, and Green Brick Partners.Regulatory filings from 3/15/2021 to 6/7/2021: None."