"Tracking David Einhorn’s Portfolio – Q1 2016 Update"
"David Einhorn's US long portfolio increased from $5.47B to $5.90B this quarter.Greenlight's long/short ratio is at 99% long and 79% short compared to 90% long and 76% short last quarter.Greenlight substantially increased Apple, General Motors, Yahoo, and Yelp while dropping Chicago Bridge & Iron and reducing IAC Interactive and Michael Kors.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 05/16/2016. Please visit our  series for an idea on his investment philosophy and our  for the fund’s moves during Q4 2015.Greenlight Capital’s US long portfolio stood at $5.90B this quarter. It is up 7.85% compared to $5.47B as of last quarter. The long/short ratio shifted to the long side this quarter: 99% long and 79% short compared to 90% long and 76% short as of Q4 2015 - net exposure at 20% compared to 14% last quarter. The top five holdings represent 46.27% of the US long portfolio. The number of 13F stakes decreased from 48 to 44. Einhorn’s Q1 2016 letter reported that the fund gained 3% in the quarter. Since inception in May 1996, the fund is up ~16.5% annualized net-of-fees and expenses.To learn about David Einhorn and the perils of shorting, check-out his “”.New Stakes:Hatteras Financial (HTS): HTS is a 1.64% of the US long portfolio stake established this quarter at a cost-basis of $12.34. The stock currently trades at $16.50. Hatteras is focused on single-family residential agency mortgage-backed securities and the stake was acquired at 0.64 times Book Value.PVH Corporation (PVH): PVH is a 1.11% of the US long portfolio position purchased this quarter at a cost-basis of $75.65. It currently trades at $86.65. The stake in the global apparel company was established at 11-times projected 2016 earnings. Greenlight expects Calvin Klein’s growth in Europe and Tommy Hilfiger Chinese joint venture interest purchase to result in good earnings growth going forward.Community Health Systems (CYH), Globalstar Inc. (GSAT), and Lamar Advertising (LAMR): These are very small (less than 0.5% of the portfolio each) stakes established this quarter.Stake Disposals:Chicago Bridge & Iron (CBI): CBI was a 2.46% of the US long portfolio position established in Q4 2014 at prices between $37.78 and $57.85 and increased by ~130% the following quarter at prices between $34.51 and $49.48. Q3 2015 saw a ~11% further increase at prices between $37.24 and $53.26. Last quarter saw an about-turn: ~54% reduction at prices between $37.58 and $45.48. The elimination this quarter was at prices between $31.52 and $39.72. The stock currently trades at $37.75. Overall, Greenlight realized modest losses on this investment.ON Semiconductor (ON): ON position was established in Q3 2014 at prices between $8.34 and $9.91 and increased by ~18% the following quarter at prices between $6.94 and $10.22. Last quarter saw a ~82% reduction at prices between $9.29 and $11.60 and the elimination this quarter was at prices between $7 and $10. The stock currently trades at $8.95.Note: Greenlight’s Q1 2016 letter discussed this exit - they do not believe ON’s Fairchild Semiconductor (FCS) acquisition would benefit shareholders.Owens Illinois (OI): The ~1.5% of the US long portfolio stake was purchased in Q2 2015 at prices between $23 and $26. It was disposed of this quarter at prices between $12 and $17. The stock is now at $18.78. Greenlight realized losses from this position.Sunedison Semiconductor (SEMI): SEMI was a minutely small 0.07% of the US long portfolio stake. It was established in Q1 2015 at prices between $15.19 and $27.14 and increased by 37% the following quarter at prices between $17.27 and $26.46. Q3 2015 saw a ~49% reduction at prices between $10 and $18.14. Last quarter, the remaining stake was almost eliminated at prices between $7.61 and $11.59. The stock currently trades at $4.45. The remnant stake was sold this quarter.SanDisk Corporation (SNDK):  The very small 0.65% of the portfolio merger-arbitrage stake established last quarter was disposed of this quarter.Note: Western Digital’s (WDC) acquisition of SNDK closed earlier this month.Fifth Street Asset Management (FSAM), Garmin Ltd. (GRMN), Liberty Global LiLAC (LILA) (LILAK), Match Group Inc. (MTCH), and Scientific Games Corp. (SGMS): These are very small stakes (less than ~0.5% of the portfolio each) eliminated this quarter.Note: IAC Interactive owned Match Group had an IPO in November 2015. Einhorn has a position in IAC Interactive as well.Stake Increases:AerCap Holdings N.V. (AER): AER is a fairly large (top five) 6.41% position established in Q2 2014 at prices between $38.91 and $48.14. It was increased by ~68% in Q4 2014 at prices between $36.68 and $45.22 and another ~50% the following quarter at prices between $37.84 and $45.94. Q3 2015 also saw another ~50% increase at prices between $37.71 and $48.49. The stock currently trades at $38.01. Last quarter saw a ~12% trimming while this quarter saw a ~23% increase. For investors attempting to follow Einhorn, AER is a good option to consider for further research.Apple Inc. (AAPL): AAPL is Einhorn’s largest position at 16.37% of the US long portfolio. The stake was first purchased in the low-40s price-range in 2010. It has seen several profitable trades over the years. The six quarters thru Q2 2015 had seen a combined ~55% reduction at prices between $72 and $133. In Q3 2015, the pattern reversed: ~59% increase at prices between $103 and $132. Last quarter saw a ~47% reduction at prices between $105 and $123 while in this quarter there was a ~31% increase at prices between $93 and $110. The stock currently trades at $93.49.General Motors (GM): GM is Greenlight’s second-largest position at 8.79% of the portfolio. The original stake was increased by ~55% in Q2 2015 at prices between $33.23 and $37.50 and another ~11% the following quarter at prices between $27.28 and $33.23. The stock currently trades at $30.62. Last quarter saw a ~15% trimming while there was a ~10% increase this quarter. For investors attempting to follow Einhorn, GM is a good option to consider for further research.Note: GM has seen a previous roundtrip: A huge 9.55% stake was disposed of in Q1 2014 at an average exit price of $35.76 compared to an average entry price of $23.87.Liberty Global Class A & Class C (LBTYA) (LBTYK): Liberty Global position accounts for 3.14% 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. This quarter saw a minor ~6% increase.Macys Inc. (M): Macys is a fairly large 5.69% of the 13F portfolio stake purchased last quarter at a cost-basis of $45.69. The stock currently trades below that range at $30.41. This quarter saw a ~5% increase.Note: Greenlight’s Q4 2015 letter discusses this position. Basically, the firm believes tremendous value can be unlocked by separating the real estate assets in an REIT structure.Sunedison Inc. (SUNEQ) & Notes: The very small 0.23% of the US long portfolio position in SUNEQ 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 another 79% at prices between $16.74 and $22.87. Q1 2015 saw a further ~18% increase at prices between $14.30 and $22.86. In Q3 2015, there was an about turn: ~25% reduction at prices between $6.66 and $31.84. This quarter saw a ~13% increase. The 13F report also shows a very small position in Sunedison Notes.Note: SUNEQ filed for Chapter 11 bankruptcy protection last month. Greenlight had added a director to SUNEQ board but in their Q1 2016 letter disclosed the action was too late as the patient was already terminally ill.Twenty First Century Fox (FOXA): FOXA is a 2.43% stake that saw a ~35% increase last quarter at prices between $27 and $31. The stock is now at $28.69. This quarter also saw a ~10% further increase.Voya Financial (VOYA) previously ING US: The 2.39% VOYA position was established in Q2 2013 at a cost-basis of $20.29. This quarter saw a ~20% increase at prices between $26 and $37. The stock currently trades at $30.82.Allergan plc (AGN), Cigna Corporation (CI), EMC Corporation (EMC), and Humana Inc. (HUM):  These are merger-arbitrage stakes established last quarter. It is rare for the firm to dip into such situations. All four stakes were increased this quarter.American Capital Agency (AGNC), Baxter International (BAX), Chemours Co. (CC), and Yelp Inc. (YELP):  These are very small (less than ~0.5% of the portfolio each) stakes established last quarter and increased significantly this quarter.Note: AGNC and YELP stakes were both mentioned in Greenlight’s Q1 2016 letter. AGNC was purchased at a cost-basis of $17.41 (0.77 times BV) while for YELP the cost-basis was $21.16. With YELP, the thesis is that valuation is currently depressed and that revenue should double by 2019.Vodafone Group (VOD) and Yahoo Inc. (YHOO): VOD is a very small 0.60% of the portfolio stake that saw a ~20% stake increase this quarter at prices between $29 and $33. The stock is now at $33.58. YHOO saw a huge ~120% stake increase this quarter at prices between $27 and $37. The position is now very sizable at 2.97% of the portfolio. The stock is currently at $37.27.Stake Decreases:Avangrid Inc. (AGR) previously UIL Holdings (UIL): AGR is a medium-sized 2.57% of the portfolio stake. It was established in Q1 2015 at prices between $31.50 and $41.50 and increased by ~92% the following quarter at prices between $35.32 and $40.92. The stock currently trades at $40.59. Greenlight’s overall cost-basis was at $39.07. This quarter saw a one-third stake reduction at prices between $36.72 and $42.01.Note: UIL merged with Iberdrola USA to form the new entity Avangrid. UIL shareholders got $10.50 per share cash and one share of AGR for each UIL share held. The prices quoted above are adjusted for this.Dillard’s (DDS): The 2.44% DDS position had seen a ~40% increase last quarter at prices between $65.87 and $93.77. This quarter saw an about-turn: ~10% trimming at prices between $61.24 and $87.74. The stock is now at $57.39.IAC Interactive (IAC): IAC was a minutely small 0.30% of the US long portfolio position established in Q1 2013. In Q2 2013, the stake was substantially increased at prices between $43.50 and $51.50. The position has wavered since. Q2 2015 saw a ~37% reduction at prices between $67 and $81 and the following quarter also saw a minor ~6% trimming. The pattern reversed last quarter: two-thirds increase at prices between $59 and $72. This quarter saw another about-turn: ~55% reduction at prices between $40 and $60. The stock currently trades at $53.84 and the stake is at ~1% of the US long portfolio.Market Vectors Gold Miner ETF (GDX): GDX stake is currently at ~3%. It is a very long-term position that has wavered over the years. Last significant activity was a ~35% increase in Q4 2014 at prices between $16.59 and $21.94. The stock currently trades at $25.58. This quarter saw a ~3% trimming.Note: Einhorn also has a large holding (top-five) in physical gold.Michael Kors Holdings (KORS): KORS is a fairly large (top five) 7.03% of the US long portfolio position established in Q2 2015 at prices between $42 and $66 and almost doubled the following quarter at prices between $38.06 and $45.37. Last quarter saw another 27% increase at prices between $38.53 and $43.89. There was a ~25% selling this quarter at prices between $35.57 and $58.50. The stock currently trades at $41.63.Take-Two Interactive (TTWO): TTWO was first purchased in Q4 2013 at prices between $18.81 and $22.38. The position was decreased by ~11% in Q2 2015 at prices between $23.70 and $28.62 and another 25% last quarter at prices between $28.54 and $36.49. The stock currently trades at $36. The stake is at ~2% of the 13F portfolio. This quarter saw a ~9% trimming.Time Warner Inc. (TWX): TWX is a large (top three) 7.67% of the US long portfolio stake. It was established in Q4 2014 at a cost-basis of $72.72. Last quarter saw a ~69% increase at prices between $63.41 and $77.30 while this quarter saw a ~10% reduction. The stock currently trades at $72.82. For investors attempting to follow Greenlight, TWX is a good option to consider for further research.Ingram Micro (IM): IM is a very small 0.69% of the US long portfolio position that saw a ~13% reduction this quarter at prices between $27 and $37. The stock is now at $33.23.Note: In February, Tianjin Tianhai agreed to acquire IM in a $38.90 all-cash deal.Kept Steady:Aecom Technology (ACM): ACM is a 1.82% stake first purchased in Q3 2014 at prices between $31.66 and $38.13 and more than doubled the following quarter at prices between $28.12 and $33.91. Last quarter saw a 50% reduction at prices between $27.31 and $32.09. The stock currently trades at $32.40.Consol Energy (CNX): CNX is a fairly large 6.11% stake (top-five) purchased in Q3 2014 at prices between $36.53 and $46.07.  In Q4 2014, the position was increased by over 170% at prices between $32.13 and $41.61 and the following quarter saw a further ~55% increase at prices between $26.56 and $34.34. Q2 2015 had also seen a ~11% increase at prices between $21.74 and $33.34 and that was followed by another ~30% increase the following quarter at prices between $9.41 and $21.79. The stock currently trades at $14.48. For investors attempting to follow Einhorn, CNX is a good option to consider for further research.Note 1: A regulatory Form 4 filing on 5/16/2016 shows minor reduction of the stake after the end of the quarter- sold around 170K shares @ $15.1657.Note 2: CNX completed an IPO for its coal business as CNX Coal Resources (CNXC) in July 2015.Note 3: Regulatory Form 4 filings between 11/3/2015 & 11/12/2015 showed the net long exposure to CNX was increased by around one-third through the purchase of total return swaps (Jan 2017 expiry).DSW Inc. (DSW): DSW is a small 1.77% of the portfolio position established last quarter at prices between $21.62 and $26.34. The stock currently trades near the low end of that range at $21.96.Green Brick Partners (GRBK): The 3.35% of the US long portfolio 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.Mylan NV (MYL): MYL is a 2.45% of the portfolio position established last quarter at a cost-basis of $45.32. The buy thesis projects an earnings expectation of around $7 in 2018. The stock is currently at $41.02.Oil States International (OIS): OIS was a fairly large stake established in Q1 2013 at an average purchase price of $77.16. In Q4 2014, the position was almost eliminated at prices between $42.42 and $61.90. Last quarter saw a huge ~235% increase at prices between $25 and $33. The stock currently trades at $31.74. The stake is still very small at 0.51%.Note: The performance implied by the quoted prices above understates the actual performance due to the effect of the spin-off of Civeo (CVEO) from OIS. The spin-off terms called for OIS shareholders to receive two shares of CVEO for every share of OIS held.Tri Pointe Group (TPH): TPH is a very small ~1% of the US long portfolio stake established in Q4 2014 at prices between $12.73 and $15.34 and increased by ~9% the following quarter at prices between $13.59 and $16.03. The stock currently trades at $10.85.Note: TPH is a homebuilder with significant exposure to the California market. It had an IPO in February 2013 and trading started at ~$19 per share. In November 2013, Weyerhaeuser (WY) split-off its homebuilder subsidiary in a Reverse Morris Trust transaction with TPH.CNX Coal Resources LP (CNXC), Terraform Global (GLBL), and TerraForm Power (TERP): These are very small (less than ~1% of the US long portfolio each) stakes that were kept steady this quarter.Per Greenlight’s Q1 2016 letter, the top disclosed long positions in the partnership are Apple, CONSOL Energy, General Motors, gold and Time Warner.  The letter also disclosed some details of their short book: the positions in Pioneer Natural Resources (PXD), Veeva Systems (VEEV), and Mobileye NV (MBLY) are still on, the multi-year stake in Daily Mail & General Trust was covered unsuccessfully, the JC Penney (JCP) position was covered successfully, and the Keurig Green Mountain (GMCR) stake was covered at a minor loss.In addition to partner stakes, the fund also invests the float of Greenlight Capital RE (GLRE).The spreadsheet below highlights changes to Greenlight’s US stock holdings in Q1 2016:: Q4 2015 return is (3.8%). 2015 return is (20.2%) net of fees. NEW LONGS: E.ON (EOAN Germany - entry at 8.93 euros ended the year at 8.92 euros - one of the largest European utilities down 35% due to uncertainties - Germany abandoned nuclear generation. Split-up happening. M - Macys - entry at $45.69. Activist argued separating store real estate into REIT should unlock $125 in value. Chance for PE firm to team up with an REIT to buy up the firm to unlock value. MYL - entry at $45.32. ~$7 earnings expectation for 2018. Also a handful of merger-arbitrage stakes - somewhat rare for them. EXITS:AMAT - Entry at $20.31 and exit at $18.21 - small loss - risk of pending cyclical downturn caused the exit. BK - Exited with a small gain - grew uncomfortable with investment services & mgmt. segments. May be overvalued based on too much fed rate hike expectation. Cairn Energy - Exited 2012 stake with losses (2.72 pounds to 1.54 pounds) - ongoing retroactive extraterritorial taxation claims by India prompted the exit. MU - biggest winner of 2014 became biggest loser of 2015. Entry - $19.93, Exit - $22.14, IRR - 14%. ARM Holding Short - Moved on with small losses - falling chip prices & smart phone growth materialized but Intel competition was not great and royalties increased. Largest disclosed longs: Apple, Consol Energy, General Motors, gold, and Time Warner. Long/Short Ratio: 90% long and 76% short.Form 3/4, 13D/G/A thru 02/17/2016: DDS - 2/16/2016 13G - 1.74M shares - 5.3%. HYH & CONN - 2/16/2016 13G/A - 0. TTWO - 2/16/2016 13G - 3.12M shares - 3.7%. SUNE - 1/27/2016 - 13D/A - 27.15M shares - 6.8%.Form 3/4, 13D/G/A after 8/15/2015: CNX 11/12/2015 Form 4 - Net exposure reduced to 129K shares through total return swaps."