"Tracking David Einhorn’s Greenlight Capital Portfolio – Q1 2022 Update"
"David Einhorn's 13F stock portfolio value decreased from $1.75B to $1.57B this quarter.Greenlight increased Chemours, Warner Bros. Discovery, Resideo, Livanova, Kyndryl, and PLBY while dropping Jack in the Box and EchoStar. They also added Southwestern Energy, Weatherford plc, International Seaways, and TD SYNNEX.The largest three positions are at ~41% of the portfolio. As of Q1 2022, the overall portfolio is 113% long and 81% 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 5/16/2022. Please visit our  series for an idea on his investment philosophy and our  for the fund’s moves during Q4 2021.Greenlight Capital’s 13F portfolio value stood at $1.57B this quarter. It is down ~10% compared to $1.75B as of last quarter. Einhorn’s Q1 2022 letter reported that the fund returned 4.4% for Q1 2022. This is compared to negative 4.6% 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 Q1 2022 Letter disclosed a small stake in Ryanair Holdings (RYAAY) that is not in the 13F report. The stake was acquired at an average price of €13.93.Note 2: Greenlight has several minutely small stakes primarily in SPAC units, shares, and warrants.New Stakes:Southwestern Energy (SWN), Weatherford plc (WFRD), International Seaways (INSW), and TD SYNNEX Corp (SNX): SWN is a 1.88% of the portfolio stake established at an average price of $6.58. The stock currently trades at $7. The 1.49% of the portfolio position in WFRD was purchased at an average price of $32.27 and it is now at $29.76. INSW is a 1.17% stake established at an average price of $15.30 and it currently trades at $23.77. The 1.10% SNX stake was purchased at an average price of $105.33 and it now goes for ~$98.Stake Disposals:Tesla (TSLA) Puts: The large ~6% of the portfolio short position in TSLA through Puts was established last quarter as the underlying traded between ~$775 and ~$1230. The position was disposed this quarter when the underlying traded between ~$764 and ~$1200. It currently trades at ~$710.Note: Greenlight previously had a short position in Tesla. In December 2020 just before Tesla’s inclusion in the S&P 500 index, Greenlight switched their position to owning Puts instead of a direct short position. That stake was disposed at a loss in Q1 2021.Jack in the Box (JACK): JACK was 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 next quarter saw a similar increase at prices between ~$91 and ~$117. Q2 2021 saw a ~22% selling at prices between ~$109 and ~$123 while last quarter saw a ~40% stake increase at prices between ~$79 and ~$105. The elimination this quarter was at prices between ~$79 and ~$97. The stock currently goes for $73.56.Sonos Inc. (SONO): The 0.75% stake in SONO was purchased in Q4 2020 at prices between ~$14 and ~$24.50. The stake was sold down next quarter but was rebuilt over the last three quarters at prices between ~$29 and ~$44. The stake was disposed this quarter at prices between ~$22 and ~$31. The stock currently trades at ~$20.Concentrix (CNXC): CNXC is a spinoff from SYNNEX 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 ~$141. Q1 2021 saw a ~40% stake increase at prices between ~$100 and ~$150 while next quarter there was a ~18% trimming at prices between ~$149 and ~$160. That was followed with a ~85% reduction over the last two quarters at prices between ~$156 and ~$188. The remainder stake was disposed this quarter.EchoStar Corp (SATS): The SATS position was built over the three quarters through Q2 2021 at prices between ~$19.95 and ~$28.70. There was a ~20% selling next quarter at prices between ~$21.50 and ~$27. The stake was almost sold out last quarter at prices between ~$23 and ~$30. The remainder stake was sold this quarter. The stock is now at $21.02.Twitter Inc. (TWTR): The small 0.60% TWTR stake was purchased in Q3 2020 at prices between $31 and $45. There was a ~50% selling last quarter at prices between ~$42 and ~$66. This quarter saw the position disposed at prices between ~$32 and ~$41. The stock is now at $36.85.Stake Increases:Change Healthcare (CHNG): CHNG is a large (top five) 5.19% of the portfolio position purchased in Q1 2020 at a cost-basis of $11.40. The stock currently trades at $23.01. There was a ~30% reduction in Q1 2021 at prices between ~$18.25 and ~$24. Last three quarters have seen minor increases.Note: UnitedHealth (UNH) is buying Change Healthcare in a $25.75 all-cash deal announced in January 2021. In February, the DOJ sued to block the merger. In April, the merger deadline was extended to December 2022 by mutual agreement and there is now a fee of $650M due to Change Healthcare if the merger cannot be completed because of the court’s decision.Atlas Air Worldwide (AAWW): AAWW is a large (top five) 4.64% of the portfolio stake established in Q2 2020 at an average price of $36.28 per share. There was a ~45% selling last quarter at prices between ~$77.50 and ~$95. The stock currently trades at $69.10. This quarter saw a minor increase.Chemours (CC): CC is a 4.28% 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 five quarters through Q1 2021 had seen a two-thirds reduction at prices between ~$7 and ~$28.75. That was followed with a ~25% selling last quarter at prices between ~$28 and ~$34. This quarter saw a similar increase at prices between ~$23 and ~$36. The stock is currently at $41.35.Note: Greenlight had a highly successful (4x returns) previous roundtrip with Chemours in the two-year period that ended in Q1 2018.Warner Bros. Discovery (WBD): WBD is a 2.62% of the portfolio position built over the last two quarters at prices between ~$22 and ~$31 and the stock is now well below that range at $17.46.Resideo Technologies (REZI): The 2.29% 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 last quarter. This quarter saw a ~30% stake increase at prices between ~$23 and ~$27. The stock is now at $23.20.LivaNova plc (LIVN): The 2.29% of the portfolio stake in LIVN was built over the last three quarters at prices between ~$71 and ~$93. The stock is now at $64.44.SPDR Gold Trust (GLD): The 2.10% 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. It currently trades at ~$169. Last two quarters have seen a ~60% stake increase at prices between ~$164 and ~$192.Kyndryl Holdings (KD): KD is a ~2% of the portfolio position built over the last two quarters at prices between ~$11 and ~$41 and the stock is now near the low end of that range at $13.19.Gulfport Energy (GPOR) and PLBY Group (PLBY): These two small (less than ~0.70% of the portfolio each) stakes were increased this quarter.Stake Decreases:Green Brick Partners (GRBK): GRBK is currently the largest position at ~21% 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 $22.57. There was minor trimming this quarter. They own ~36% of the business.Brighthouse Financial (BHF): BHF is a large (top three) stake at ~12% 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 $46.81. There was a ~70% selling in Q4 2018 at prices between $29 and $46.50. Last two quarters have seen minor trimming.Note 2: BHF is a spinoff of MetLife’s (MET) U.S. Retail business (annuities and life insurance) that started trading in July 2017.Teck Resources (TECK): TECK is a 7.64% of the portfolio position purchased in Q2 2020 at prices between $7 and $12.25. The stock has tripled and currently trades at $39.16. 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 have seen a stake doubling at prices between ~$19.50 and ~$26.80. There was a roughly one-third selling over the last two quarters at prices between ~$24 and ~$44.The ODP Corp (ODP): ODP is a ~4% of the portfolio position primarily built over the last three quarters at prices between ~$36 and ~$50. The stock currently trades at $40.55. There was minor trimming this quarter.Note: Greenlight’s cost-basis is ~$44.Consol Energy (CEIX): CEIX is a 3.53% 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 two quarters have seen another ~30% selling at prices between ~$20.50 and ~$40.50. CEIX currently trades at $49.91.Capri Holdings (CPRI): The 2.55% CPRI position was purchased last year at prices between ~$40.50 and ~$67. This quarter saw a ~12% trimming. The stock is now at $42.50Note: Greenlight’s cost-basis is ~$56.GoPro Inc. (GPRO): The 1.46% GPRO stake was built over H1 2021 at prices between ~$7.50 and ~$13.50. There was a ~20% selling last quarter at prices between ~$8.50 and ~$11.60. The stock currently trades at $6.79. This quarter also saw minor trimming.Victoria’s Secret (VSCO): The 1.42% stake in VSCO was primarily built last quarter at prices between ~$47 and ~$59. The stock is now at $46.84. There was minor trimming this quarter.Note: VSCO is a spinoff from Bath & Body Works (previously L Brands) that started trading in August 2021 at ~$46 per share.Galapagos NV (GLPG): The very small 0.63% of the portfolio stake in GLPG was reduced this quarter. Greenlight’s cost-basis was ~$53 per share and the stock currently trades at $55.59.Kept Steady:Global Payments (GPN): GPN is a fairly large 4.40% of the portfolio stake established last quarter at prices between ~$118 and ~$161 and the stock currently trades at ~$120. Greenlight’s cost-basis is ~$126 per share.Note: Their Q4 2021 letter had the following regarding GPN: the ~45% drop due to fintech disruption worries is overdone. There is also a chance that they might get acquired.iShares Silver Trust (SLV): SLV is a 2.27% of the portfolio position established in Q3 2021 at prices between ~$20 and ~$24.50 and the stock currently trades at $19.73.Graphic Packaging Holding (GPK), Intel Corp (INTC), and News Corp (NWS): These small (less than ~1.10% of the portfolio each) stakes were kept steady this quarter.The spreadsheet below highlights changes to Greenlight’s 13F stock holdings in Q1 2022:Source: John Vincent. Data constructed from Greenlight Capital’s 13F filings for Q4 2021 and Q1 2022.Info from Q4 2021 Letter – 7/26/2021  – Performance – 11.9% in 2021 vs 28.7% for S&P. ~12.3% annualized since 1996 inception. Commentary – inflation is “embedded” opinion piece – fed wants to fight inflation without disrupting markets which is a “no-go”. Without action, pricing for critical feedstocks like oil and corn can go substantially higher. Young speculators preferring to “trade from home” rather than take a job is one of the drivers of labor shortage. We believe eventually inflation will cause a recession regardless of Fed – higher prices of necessities will ultimately cause low-income consumers to cut back on other things. We have begun to position for that scenario . Winners: BHF – still bullish despite 43% return in 2021 as street is still unimpressed despite ~12% buyback of outstanding shares in 2021 and adjusted earnings at $18.52 compared to $11.45 expectation (mainly due to strong investment performance). Expects another double-digit percentage of the float to retire in 2022 due to buybacks. GRBK – advanced 48% to $30.33 in the quarter. $3.65 expected earnings in 2021 and $4.28 in 2022. Although 32% advance in year, PE shrank as earnings grew faster than PPS . RIVN – material gain as a result of IPO from a mid-2020 small investment at a $10B valuation. Was hedged to lock in ~$120B minimum valuation. Not material exposure now although they are believers in the business. Bubble basket shorts contributed during quarter – believes these stocks could get cut in half again and fall further from there as “half a silly price is not deep value”. TECK – advanced 16% to $28.82. New copper mine scheduled for H2 2022 is a tailwind. Met coal mining is the main reason for EPS expectations to go up form $1.67 to $3.49 and $4.50 now. Next year’s is now at $5.52 – we believe this would be easily beat. Management is evaluation splitting met-coal business from “green metals” business – should unlock value. Detractors: DNMR – was cut in half to $8.52. Primary driver is inexplicable mismanagement of capital situation. Plan to bring online a large new plant in late 2023 was projected as fully funded. But, they doubled the size of the plant and simultaneously did a large cash acquisition of an adjacent product. Investors were told the expansion will be funded by debt thru govt-spoonsored-programs which turned out to be NOT TRUE. In response, we invested in the convert and sold our common. We continue to believe that there will be enormous demand for its biodegradable plastic. An equity index hedge and an undisclosed short were the two other material detractors.  New Positions: GPN – Acquired at $126.27 average price. electronic payments behemoth – benefits from ongoing consumer preference shifts. Also benefits from inflation as it generally charges a percentage of merchant dollar volume. Worries of fintech disruption resulted in a 46% drop in the April-December timeframe which we think is overdone. Thinks they may be acquired. CPRI – average entry price is $55.86 - re-entered after the 2016 successful exit (successful turnaround) when it was Michael Kors. Since then, they rebranded and acquired Versace and Jimmy Choo brands – they are transforming into a full-scale luxury platform. With cuts in wholesale business (30%) and 10% in US retail, they are no longer over-distributed and is enjoying pricing power. Share repurchase of 11% of float announced and expects 10% of market-cap cash generation this year. GLPG – began building position at 47 Euro average price compared to 73 Euro net-cash. small molecule medicines – dropped 47% thru Nov-2021 after several late-stage trial disappointments taking valuation below net-cash position. Jysleca (approved in EU & Japan to treat inflammatory disorders) & rest of pipeline should be worth a lot more than the negative 2B Euros the market values it at. ODP – Acquired at average price of $43.69. Holding company of Office Depot and OfficeMax – also B2B distribution platform – retail and business services divisions expected to separate over the next year. Strong cash positions and low valuation. Also buying back 20% of shares by mid-2022. Sum-of-parts comes up at $55 (based partly on $1B that Saples offered for retail division in June 2021) which doesn’t include Varis (digital commerce SaaS and procurement business – potentially valuable option for investors). Rheinmetall AG – acquired at average price of 82.49 euros - producer of land-based military vehicles – sold off based on lower defense spending projection. Believes 8-10% annual growth based on NATO orders. Exits: AER – 9% compounded return. Countryside Properties – changed our mind. FUBO – invested prior to public listing in 2020. Excellent compounded return. Exposure - 127% long and 71% short.  Largest Long Positions –Brighthouse Financial, Change Healthcare, Global Payments, Green brick Partners, and Teck Resources.Regulatory filings from 11/17/2021 to 2/26/2022: 13Gs & 13G/As – 2/14 – TLIS – Talis Biomedical – 1.57M shares – 6% of business, AAWW – 815k shares – 2.8% of business, NBSE – 2.73M shares – 8.3% of business, CEIX – 1.88M shares – 5.4% of business. Form 4 – 1/3 – GLRE – in-kind distributions to Einhorn that resulted in a change in the form of his beneficial ownership."