"Tracking David Einhorn’s Portfolio – Q4 2014 Update"
"David Einhorn's US long portfolio increased from $6.93B to $7.52B this quarter.Greenlight's long/short ratio is at 96% long and 66% short compared to 114% long and 75% short last quarter.Greenlight substantially increased stakes in Consol Energy and Sunedison while also adding a new medium-sized position in Time Warner.This article is part of a series that provides an ongoing analysis of the changes made to David Einhorn’s Greenlight Capital US long stock portfolio on a quarterly basis. It is based on Einhorn’s regulatory  filed on 02/13/2015. Please visit our  series for an idea on his investment philosophy and our  highlighting the fund’s moves during Q3 2014.Greenlight Capital’s US long portfolio stood at $7.52B this quarter. It is up 8.56% compared to $6.93B as of last quarter: the long/short ratio shifted significantly this quarter - 96% long and 66% short as of Q4 2014 compared to 114% long and 75% short as of Q3 2014. The top five holdings represent around 44% of the US long portfolio. The number of individual stock positions decreased from 46 to 41. 36 of them are fairly large (greater than 0.5% of the portfolio each) and they are the focus of this article.Einhorn’s Q4 2014 letter reported that the fund returned 8% for 2014 - in a constantly rising bull-market, the fund is not expected to keep pace with the market, but the long-term performance of his absolute-returns strategy speaks for itself: 18.90% annualized returns (net of fees and expenses) since inception in 1996.To learn about David Einhorn and the perils of shorting, check-out his “”.New Stakes:Chicago Bridge & Iron (CBI): CBI is a 1.64% of the US long portfolio position established this quarter at prices between $37.78 and $57.85. The stock currently trades near the low end of that range at $38.69. For investors attempting to follow Einhorn, CBI is a very good option to consider for further research.Covidien PLC (COV): COV is a 1.16% of the US long portfolio position established this quarter. Einhorn has disclosed that the merger-arbitrage stake was established when the Medtronic (MDT) deal-spread was at $8.79 - the deal closed on January 26, 2015.Green Brick Partners (GRBK): GRBK stake was acquired as a result of BioFuel Energy’s JGBL Builder Finance acquisition and rename transaction. The deal closed with Greenlight owning 49% of the business. David Einhorn was appointed Chairman of the Board following the transaction.Halyard Health (HYH): HYH is a new 1.42% of the US long portfolio position established this quarter at prices between $35.82 and $48.30. The stock currently trades at $44.50. HYH, a surgical infection prevention products business, is a spin-off from Kimberly Clark (KMB) that started trading in November 2014. Greenlight initiated the stake soon after and they control 5.1% of the business.Time Warner Inc. (TWX): TWX is a fairly large 4.31% of the US long portfolio stake established this quarter at an average cost-basis of $72.72. The stock currently trades at $83.87. The substantial stake establishment indicates a clear bullish bias.Tri Pointe Homes (TPH): TPH is a very small 0.89% of the US long portfolio stake established this quarter at prices between $12.73 and $15.34. The stock currently trades just outside that range at $15.64. The homebuilder with a significant exposure to the California market is a spin-off from Weyerhaeuser Company (WY) that started trading in February 2013. The stock is still trading below the IPO price of $19.Keysight Technologies (KEYS), Life Time Fitness (LTM), & Yahoo Inc. (YHOO): These are small (less than ~2% of the portfolio each) positions established this quarter. KEYS is a 2% position purchased at an average cost-basis of $30.54 and the stock currently trades at $36.49. LTM is a 1.38% stake established at prices between $47.77 and $56.75 and the stock currently trades at $56.10. YHOO is a 1.36% position established at prices between $37.82 and $52.37 and the stock currently trades at $44.42.Stake Disposals:American Capital Agency (AGNC): The 1.74% AGNC stake was first purchased in Q1 2014 at prices between $19.29 and $22.66. It was increased by 8.59% last quarter at prices between $21.25 and $23.69. This quarter, the position was eliminated at prices between $21.25 and $23.29. The stock currently trades at $21.95.Anadarko Petroleum (APC): APC was a 1.70% of the US long portfolio position purchased in Q4 2013 at an average cost-basis of $78.55. It was increased by ~22% in Q1 2014 at prices between $78 and $87. Half the stake was disposed of in Q2 2014 at prices between $85 and $112 and the remaining position was eliminated this quarter at prices between $72.01 and $101.44. The stock currently trades at around $89.44.Babcock & Wilcox (BWC): The very small 0.53% of the US long portfolio BWC position was first purchased in Q3 & Q4 2012 at prices between $23.37 and $27. In Q2 2014, the stake was reduced by ~60% at prices between $31.89 and $35.49 and last quarter saw an additional ~11% selling at prices between $27.69 and $33.43. This quarter, the remaining position was eliminated at prices between $27.69 and $30.70. The stock currently trades at $29.88.BP PLC (BP): BP was a 1.31% of the US long portfolio position purchased in Q4 2013 at an average cost-basis of $47.39. The position was increased by just over 50% in Q1 2014 at prices between $46 and $51 and that was followed with a ~40% increase last quarter at prices between $43.95 and $53.38. This quarter, the stake was eliminated at prices between $34.94 and $43.95. The stock currently trades at $41.93.Chemtura Corporation (CHMT): CHMT was a 1.33% position established in Q2 2014 at prices between $22.14 and $26.09 and increased by over one-third last quarter at prices between $23.26 and $26.44. The stake was eliminated this quarter at prices between $21.49 and $24.94 and the stock currently trades at $24.77.Cigna Corporation (CI): CI was a top-five position in 2013 but had seen significant selling: Q4 2013 saw a ~10% trimming at prices between $73 and $88 and Q2 2013 saw a ~40% stake reduction at prices between $62.50 and $72.50. The original position was established in Q2 2012 at prices between $43 and $50. Q2 2014 saw another 26% reduction at prices between $75.64 and $92.11 and last quarter the pattern continued with a one-third reduction at prices between $88.75 and $96.80. This quarter, the remaining position was eliminated at prices between $87.71 and $105.20. The stock currently trades at around $114.  Einhorn harvested large long-term gains from this position - his average cost-basis was $45.77 and the average exit price was at $81.67.Einstein Noah (BAGL): BAGL was a very long-term holding that was kept steady from 2009 to Q2 2013. About 14% of the position was sold at $15.51 (1.5M shares) through a secondary underwriting in August 2013. Q4 2013 saw another ~27% stake reduction at prices between $14.50 and $18.11. The remaining position was at 1.96% of the US long portfolio (~6.7M shares) as of Q3 2014. On November 5, 2014, the shares were tendered at $20.25 following the acquisition offer from JAB Holding.Note: Einhorn disclosed that over the holding period, BAGL was a 5-bagger (2001 onwards - 18% annualized). Greenlight almost lost the whole investment as BAGL went through a near-death experience. In response, Greenlight converted their preferred holdings to common-stock, replaced management, etc. and was instrumental in the turnaround.Synchrony Financial (SYF) & Interpublic Group (IPG): SYF & IPG were very small 0.75% & 0.64% of the US long portfolio positions respectively established last quarter and disposed of this quarter. SYF purchase was at prices between $23 and $26 and the exit was at prices between $24.20 and $30.50. The stock currently trades at $32.80. It is a private-label credit card issuer spun-off from General Electric (GE) at the end of July 2014. IPG stake was established at prices between $18 and $20.54 and the exit was at prices between $16.51 and $20.83. The stock currently trades at $22.10.National-Oilwell Varco (NOV): NOV was a 2.44% of the US long portfolio position first purchased in Q1 2014 at prices between $73 and $80. In Q2 2014, the position was increased by around 42% at prices between $77 and $84 and last quarter saw a further ~27% increase at prices between $76.10 and $86.43. This quarter, the stake was eliminated at prices between $61.55 and $76.10. The stock currently trades at $53.36.NOTE: The implied performance of this position by the prices quoted above is negatively skewed because of the effect of National Oilwell Varco’s Now Inc. (DNOW) spinoff in May 2014. The terms called for NOV shareholders to receive one share of DNOW for every four shares of NOV held. It is interesting that Einhorn chose to liquidate DNOW while increasing NOV substantially.URS Corporation (URS): The 1.59% URS stake established in Q2 2013 at prices between $43 and $50 was increased by ~16% in Q4 2013 at prices between $50 and $55. Q1 2014 saw a ~50% stake increase at prices between $42.51 and $53.28. This quarter, the position was eliminated as a result of Aecom’s acquisition of URS for $56.31 in cash-and-stock that closed in October 2014.Stake Increases:AerCap Holdings N.V. (AER): AER is a small 1.93% position established in Q2 2014 at prices between $38.91 and $48.14. It was increased by ~68% this quarter at prices between $36.68 and $45.22 and the stock currently trades at $43.02.Civeo Corporation (CVEO): CVEO is a 0.58% of the US long portfolio position established in Q2 2014 as a result of its spin-off from Oil States International. Einhorn held 2.75M shares of Oil States and per the spin-off terms received 5.5M shares (2:1 ratio). This quarter, the position was increased by ~73% at prices between $3.92 and $13.25.  CVEO started trading in May at $22.80 and the stock is currently at $3.87.Note: Einhorn’s disclosed that CVEO was the one significant loser in the quarter (excluding the O&G related losses that were hedged). The mistake was that they viewed CVEO as a real estate company and underestimated its sensitivity to commodity prices.EMC Corporation (EMC): The original position in EMC was established in Q4 2013 at around $24 per share. It was doubled in Q1 2014 at prices between $23.66 and $28.18. The average cost-basis as of last quarter was $25.79. This quarter saw a ~39% increase at prices between $26.89 and $30.89 and the stake is at 3.17% of the US long portfolio. The stock currently trades at $27.99. The activity indicates a clear bullish bias.Kennametal Inc. (KMT): KMT was a minutely small 0.35% position as of last quarter. This quarter, the position was increased by ~280% at prices between $33.60 and $41.68. The stake is now at 1.05% of the US long portfolio. The stock currently trades near the low-end of that range at $35.44.Market Vectors Gold Miner ETF (GDX): GDX stake is currently at 2.08%. The original position was increased by ~47% in Q2 2013 at prices between $23.42 and $35.06. Last quarter saw a 27% reduction at prices between $21.36 and $27.32. This quarter, the pattern reversed: ~35% increase at prices between $16.59 and $21.94. The stock currently trades at $21.26. Einhorn also has a large holding in physical gold.Micron Technology (MU): MU is Einhorn’s largest 13F position at 14.54% of the US long portfolio. The original stake was purchased in Q4 2013 at an average cost-basis of $16.49. Q1 2014 saw an 8% trimming at prices between $20.67 and $25.49 and the following quarter saw an additional 8% trimming at prices between $21 and $32.50. Last quarter, almost 25% of the position was sold at prices between $29.68 and $34.64.  This quarter saw a marginal increase. The stock currently trades at $31.85. Einhorn has started to opportunistically realize large gains from this position.Sunedison Inc. (SUNE): The very small 0.23% of the US long portfolio position in SUNE established in Q4 2013 was increased to a fairly large 3.34% position in Q1 2014 at an average entry price of $15.55. In Q2 2014, the stake was increased by around 79% at prices between $16.74 and $22.87. This quarter saw a ~18% increase at prices between $14.30 and $22.86. The stock currently trades at $21.45. SUNE completed the IPO of its yield-co TerraForm Power (TERP) in July 2014. SUNE is currently Greenlight’s third-largest 13F position at 6.47% of the US long portfolio and they control 9.2% of the business.Voya Financial (VOYA) previously ING US: The 3.12% VOYA position was established in Q2 2013 at an average cost-basis of $20.29. This quarter saw a 37% increase at prices between $35.23 and $43.07. The stock currently trades at $43.19. The activity indicates a clear bullish bias.Consol Energy (CNX): CNX is a 5.96% stake purchased last quarter at prices between $36.53 and $46.07.  This quarter, the position was increased by over 170% at prices between $32.13 and $41.61. It is now a top-five holding and the stock currently trades at $33.60. The substantial stake build-up indicates a clear bullish bias.  Einhorn controls 5.8% of the business.Aecom Technology (ACM), Citizens Financial Group (CFG) & ON Semiconductor (ONNN): These are medium-sized (more than ~2% of the portfolio each) positions established last quarter and substantially increased this quarter. ACM is a 2.69% stake purchased at prices between $31.66 and $38.13 and more than doubled this quarter at prices between $28.12 and $33.91. The stock currently trades below those ranges at $27.79. CFG is a 3.34% position established at an average-cost-basis of $22.01 and the stock currently trades at $25.45. It is a carve-out from Royal Bank of Scotland (RBS) that debut on 9/23/2014. ONNN is a 2.39% position established at prices between $8.34 and $9.91 and increased by ~18% this quarter at prices between $6.94 and $10.22. The stock currently trades outside those ranges at $11.94. The substantial stake build-ups represent a bullish bias toward these businesses.Stake Decreases:Aetna Inc. (AET): AET was a top-five position as of Q3 2013. Q4 2013 & Q1 2014 together saw a ~50% stake reduction at prices between $60.75 and $76. Last quarter, the pattern continued with a ~7% decrease at prices between $75 and $85 and this quarter saw a further ~56% reduction at prices between $73.43 and $90.84. The original position was established in Q2 2012 at prices between $38.50 and $50. The stock currently trades at $96.12 and the remaining position is at 1.59% of the US long portfolio.Amdocs (DOX): The very small 0.81% DOX position was established in Q2 2013 at prices between $34 and $37. It was increased by just over 50% in Q4 2013 at prices between $40 and $45. This quarter saw a ~43% reduction at prices between $44.43 and $48.75. The stock currently trades at $51.15.Apple Inc. (AAPL): AAPL position was first purchased in the low-40s price-range in 2010. It was reduced by 25% in Q3 2012 at prices between $82 and $100 but upped by 45% in Q4 2012 at prices between $72 and $96. In Q1 2013, the position was again increased by around 50% at prices between $60 and $78 and had since been kept steady. Q1 2014 saw a ~13% stake reduction at prices between $71 and $80 and that was followed by a 35% reduction last quarter at prices between $74 and $94. Last two quarters have seen minor selling at prices between $96.26 and $119. The stock currently trades at around $127. Einhorn is starting to realize large long-term gains from this position. The remaining stake is currently his second-largest position.Lam Research (LRCX): LRCX is a 2.62% of the US long portfolio position first purchased in Q1 2014 and more than doubled the following quarter. Greenlight’s overall cost-basis is $54.07 and the stock currently trades at $82.21. This quarter saw minor selling. The buy thesis boils down to foreseeing excess demand for Lam’s etchers and deposition tools.Liberty Global Class A & Class C (LBTYA) (LBTYK): Liberty Global position accounts for 2.78% of the US long portfolio. Einhorn had a position in Virgin Media (VMED) from Q2 2012 onwards and the Liberty Global position was established as a result of the acquisition of VMED by Liberty Global. The VMED position roughly doubled in around twelve months of ownership. This quarter saw a very minor reduction.Marvell Technology Group (MRVL): MRVL is a top-five position at 4.77% of the US long portfolio. It was first purchased in Q3 2011. Einhorn’s average cost-basis in MRVL is around $11. The stock currently trades at $16.59. Last quarter saw a one-third stake reduction at prices between $12.80 and $14.64 and this quarter saw minor additional selling. Greenlight still controls 4.8% of the business. The significant selling in a long-term position indicates a bearish bias.Oil States International (OIS): OIS was a fairly large stake established in Q1 2013 at an average purchase price of $77.16. This quarter, the position was almost eliminated at prices between $42.42 and $61.90. The stock currently trades at $41.83. In the Ira Sohn conference in May 2013, Einhorn highlighted this position saying the shares could be worth as high as $155 per share, if the accommodation business it owns is spun-off as an REIT. The business was spun-off as Civeo Corporation in May 2014.NOTE: The performance implied by the quoted prices above understates the actual performance due to the effect of the spin-off of CVEO from OIS. The spin-off terms called for OIS shareholders to receive two shares of CVEO for every share of OIS held.Spirit Aerosystems (SPR): SPR is a 1.26% position that had seen consistent buying since the stake establishment in Q1 2013. The position was increased by just over 40% in Q4 2013 at prices between $21.50 and $26 and another 20% in Q1 2014 at prices between $26.51 and $35.89. Last quarter the pattern reversed as the stake was reduced by 29% at prices between $32.57 and $39.73 and this quarter saw minor additional selling. The stock currently trades at $49.35.Time Inc. (TIME): Time Warner (TWX) spun-off Time Inc. (magazine publisher subsidiary) in June 2014. Greenlight established a 1.13% stake in Q2 2014 at prices between $20.85 and $24.43. Last quarter saw an almost one-third increase at prices between $22.59 and $25.62. This quarter, the pattern reversed as the position was reduced by ~11% at prices between $19.41 and $24.98. The stock currently trades at $24.84 and the stake is at 1.28%.Kept Steady:Conn’s Inc. (CONN): CONN is a 0.89% of the US long portfolio position established in Q1 2014 at an average purchase price of $35.49. Q2 2014 saw a 6% stake increase at prices between $38.59 and $49.87. The stock currently trades below his purchase price ranges at $24.69. The specialty retailer fell ~50% in February 2014 after announcing increased credit losses. Einhorn purchased the shares on the thesis that the market has over-reacted. He currently controls 9.8% of the business. For investors attempting to follow Einhorn, CONN is a good option to consider for further research.IAC Interactive (IACI): IACI was a minute 0.30% of the US long portfolio position established in Q1 2013. In Q2 2013, the position was substantially increased at prices between $43.50 and $51.50. Q1 2014 saw an about-turn as the position was reduced by 28% at prices between $65 and $80. In Q2 2014, the pattern reversed again: 36% stake increase at prices between $62 and $72.59. Last quarter, the position was increased by 60% at prices between $63.80 and $72.96. The stock currently trades at $64.60 and the stake is at 2.42% of the US long portfolio. The large stake build-up over several quarters indicates a bullish bias.Take-Two Interactive (TTWO): TTWO was first purchased in Q4 2013 at prices between $18.81 and $22.38. The position was increased by ~15% in Q1 2014 at prices between $16.88 and $22.26 and the stock currently trades at $28.40. The stake is at 1.75% of the US long portfolio and Einhorn controls 5.6% of the business.Nokia Corporation (NOK), & NorthStar Asset Management (NSAM): These are small (less than ~2% of the portfolio each) positions established last quarter and kept steady this quarter. The 0.82% NOK position was established at prices between $7.40 and $8.66 and the stock currently trades at $8.02. The 1.36% NSAM position was established as a result of the spin-off of NSAM from NorthStar Realty Finance that was completed in July.  NSAM currently trades at $22.02 compared to an IPO price of $18.80.Other very small positions (less than 0.5% of the US long portfolio) include California Resources Corp. (CRC), FCB Financial Holdings (FCB), Fifth Street Asset Management (FSAM), Green Dot Corporation (GDOT), Kapstone Paper & Packaging (KS), and Vodafone Group (VOD). Greenlight controls 9.98% of FSAM.Per Greenlight’s Q4 2014 letter, the top disclosed long positions in the partnership are Apple, Consol Energy, gold, Marvell Technology, Micron Technology and SunEdison. Alpha Bank (ALBKY) and Resona Holdings (RSNHF) are no longer in the top-five.  In addition to partner stakes, the fund also invests the float of Greenlight Capital RE (GLRE).Note: Einhorn has disclosed that Greenlight had oil hedges in place and that helped mitigate the losses in Anadarko, BP, McDermott (MDR), and National Oilwell Varco.The spreadsheet below highlights changes to Greenlight’s US stock holdings in Q4 2014:"