"Tracking David Einhorn’s Greenlight Capital Portfolio – Q3 2022 Update"
"David Einhorn's 13F stock portfolio value increased from $1.29B to $1.41B this quarter.Greenlight increased Kyndryl Holdings, Livanova plc, and Southwestern Energy while dropping Chemours, International Seaways, and Warner Brothers Discovery.The largest three positions are at ~49% of the portfolio. As of Q3 2022, the overall portfolio is 94% long and 84% 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 11/14/2022. Please visit our  series for an idea on his investment philosophy and our  for the fund’s moves during Q2 2022.Greenlight Capital’s 13F portfolio value stood at $1.41B this quarter. It is up ~10% compared to $1.29B as of last quarter. Einhorn’s Q3 2022 letter reported that the fund returned 17.7% for YTD through Q3 2022. This is compared to negative 23.87% 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 “”.New Stakes:Twitter Inc.: The large (top three) merger-arbitrage stake was established in August at a cost-basis of ~$37. The stake got disposed as the deal closed at $54.20 per share in October.Intel Corp (INTC): INTC is a 1.30% of the portfolio position purchased this quarter at prices between ~$26 and ~$41 and the stock currently trades at ~$26.Stake Disposals:Atlas Air Worldwide (AAWW): AAWW was a large (top three) 6.37% of the portfolio stake established in Q2 2020 at an average price of $36.28 per share. There was a ~45% selling in Q4 2021 at prices between ~$77.50 and ~$95. Last quarter saw a ~57% stake increase at prices between ~$59 and ~$73. The stock currently trades at ~$101. In August, an investor group led by Apollo agreed to acquire AAWW at $102.50 per share cash. The position was closed soon after at a ~80% IRR over the two-year holding period.Chemours (CC): CC was a 1.74% 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 in Q4 2021 at prices between ~$28 and ~$34. Next quarter saw a similar increase at prices between ~$23 and ~$36. There was a two-thirds reduction last quarter at prices between ~$29.40 and ~$45. The remainder stake was sold this quarter. The stock is currently at $29.63.Note: The exit was at a 3-year mid-single-digit IRR. Greenlight had a highly successful (4x returns) previous roundtrip with Chemours in the two-year period that ended in Q1 2018.International Seaways (INSW):. INSW was a 0.74% stake established in Q1 2022 at an average price of $15.30 and it currently trades at $37.84. There was a ~55% selling last quarter at prices between ~$19.50 and ~$25. The disposal this quarter was at prices between ~$18 and ~$36.Note: the position realized gains of ~40% in a six-month holding period.Warner Bros. Discovery (WBD): WBD was a 1.72% of the portfolio position built over the last two quarters at prices between ~$22 and ~$31. It was sold this quarter at prices between ~$11.30 and ~$17.50. The stock is now at $9.23.Note: the position realized losses of ~40% in a six-month holding period.Stake Increases:Consol Energy (CEIX): CEIX is a large (top five) 7.80% 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. The two quarters through Q1 2022 had seen another ~30% selling at prices between ~$20.50 and ~$40.50 while last quarter saw a ~11% increase. CEIX currently trades at ~$71. This quarter also saw a ~5% increase.Note: Greenlight’s Q3 2022 letter had the following regarding Consol Energy - still Expects them to generate $50 after-tax free cash flow by end of 2023. Also thinks 2024 could be another strong year.Teck Resources (TECK): TECK is a 4.66% 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 last three quarters at prices between ~$26 and ~$46. This quarter saw a ~8% stake increase.Kyndryl Holdings (KD): KD is a 4.25% of the portfolio position built over the last four quarters at prices between ~$8.25 and ~$41 and the stock is now at $11.36.LivaNova plc (LIVN): The 2.92% of the portfolio stake in LIVN was built over the last six quarters at prices between ~$44 and ~$92. The stock is now at ~$54.Capri Holdings (CPRI): The 2.69% CPRI position was purchased last year at prices between ~$40.50 and ~$67. Q1 2022 saw a ~12% trimming while last quarter there was a ~20% stake increase. The stock is now at ~$56. There was a minor ~5% further increase this quarter.Note: Greenlight’s cost-basis is ~$56.Southwestern Energy (SWN): SWN is a 2.64% of the portfolio stake established in Q1 2022 at an average price of $6.58. The stock currently trades at $5.88. There was a ~48% stake increase this quarter at prices between ~$5.60 and ~$8.10.Resideo Technologies (REZI): The 2.12% 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 $16.26. There were minor increases in the last two quarters.Concentrix Corp (CNXC): The small 0.87% CNXC position saw a ~150% stake increase this quarter at prices between ~$110 and ~$137. The stock currently trades at ~$130.Stake Decreases:Green Brick Partners (GRBK): GRBK is currently the largest position at ~26% 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 $24.53. They own ~38% of the business. There was marginal trimming this quarter.Brighthouse Financial (BHF): BHF is a large (top three) stake at ~10% 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 ~$51. There was a ~70% selling in Q4 2018 at prices between $29 and $46.50. Last four 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.SPDR Gold Trust (GLD): The 2.74% 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. Last two quarters had seen a ~140% stake increase at prices between ~$167 and ~$192. It currently trades at ~$167. There was a ~9% trimming this quarter.Global Payments (GPN): GPN is a now a small ~2% of the portfolio stake. It was established in Q4 2021 at prices between ~$118 and ~$161. Greenlight’s cost-basis is ~$126 per share. This quarter saw the stake sold down by ~47% at prices between ~$108 and ~$137. The stock is now at $94.55.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. That was followed with a ~80% reduction in the last two quarters. UnitedHealth (UNH) bought Change Healthcare in a $25.75 all-cash deal that closed in October.Victoria’s Secret (VSCO): The 1.41% stake in VSCO was primarily built in Q4 2021 at prices between ~$47 and ~$59. There was a ~70% stake increase last quarter at prices between ~$28 and ~$51. The stock is now at $38.90. This quarter saw a ~8% trimming.Note: VSCO is a spinoff from Bath & Body Works (previously L Brands) that started trading in August 2021 at ~$46 per share.Kept Steady:The ODP Corp (ODP): ODP is a ~4% of the portfolio position primarily built over the three quarters through Q4 2021 at prices between ~$36 and ~$50. The stock currently trades at $45.26. There was a ~20% stake increase last quarter at prices between ~$29 and ~$46.Note: Greenlight’s cost-basis is ~$44.iShares Silver Trust (SLV): SLV is a 1.93% of the portfolio position established in Q3 2021 at prices between ~$20 and ~$24.50 and the stock currently trades at $21.69.Weatherford plc (WFRD): The 1.72% of the portfolio position in WFRD was purchased in Q1 2022 at an average price of $32.27 and it is now at $48.52. There was a ~7% stake increase last quarter.GoPro Inc. (GPRO): The 0.94% 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.Galapagos NV (GLPG): The very small 0.44% of the portfolio stake in GLPG was reduced in the last two quarters. Greenlight’s cost-basis was ~$53 per share and the stock currently trades at $42.27.Civitas Resources (CIVI) and Graphic Packaging Holding (GPK): These small (less than ~1.20% of the portfolio each) stakes were kept steady this quarter.The spreadsheet below highlights changes to Greenlight’s 13F stock holdings in Q3 2022:Source: John Vincent. Data constructed from Greenlight Capital’s 13F filings for Q2 2022 and Q3 2022.8/1/2022 –  – Greenlight has built a position in TWTR at 37.24. This is based on their estimation of value if the deal doesn’t go through as ~$20. At ~17 upside & downside optionality, it means the market is assigning 50-50 odds that the deal should go through for something that should happen 95% of the time.Info from Q2 2022 Letter – 8/1/2022  – Performance – 13.2% in H1 2022 vs negative 20% for S&P. ~12.3% annualized since 1996 inception. Commentary – best relative performance in the history of the partnerships. Value Investing still in the doldrums – many left or scaled back research. Also short sellers significantly diminished. Market still dominated by people who do not do valuation. In this context, buybacks are a critical factor. Believes still in bear market.  AAWW – At $61.71, trading at 65% of BV and 4x earnings. Bought back 4% and another 6% authorized. BHF – At $41.02, 25% of BV and 3x earnings. Expects 10-20% repurchase this year. CEIX – At $49.38, 2.6x BV. Expects them to generate $50 after-tax free cash flow by end of 2023. Capital returns to begin shortly. GRBK – At $19.57, it is at 1.1x BV and less than 4x earnings. 5% bought back and another 10% authorized. 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 did well. Closed 4.5 short position in CH Robinson Worldwide – modest overall loss  Winners: . Detractors:  .   New Positions: None for long-term, building dry powder. But, added TWTR – believes Chancery Court will apply the law and force Musk to close. Exits: Rheinmetall with 125% gain over a few months. Exposure - 86% long and 68% short.  Largest Long Positions – Atlas Air Worldwide, Brighthouse Financial, CONSOL Energy, Green brick Partners, and Teck Resources.Regulatory filings from 5/18/2022 to 9/4/2022: 13D/A – 8/5 – GRBK – 17.43M shares – 37.9% of business, Form 4 – 7/5 – 132K shares disposed."