"Tracking David Einhorn’s Greenlight Capital Portfolio – Q2 2023 Update"
"….….….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 8/14/2023. Please visit our  series for an idea on his investment philosophy and our  for the fund’s moves during Q1 2023.Greenlight Capital’s 13F portfolio value stood at $2.13B this quarter. It is up ~16% compared to $1.84B as of last quarter. Einhorn’s Q2 2023 letter reported that the fund returned 14.5% for Q2 2023 vs 8.7% for the S&P 500 Index.  Since 1996 inception, Greenlight has returned ~12.6% annualized vs 9.1% annualized for 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:Net Power Inc. (NPWR): NPWR is a 1.53% of the portfolio position purchased this quarter at a cost-basis of $10.10 per share. The stock currently trades at $15.58.Activision Blizzard (ATVI), First Horizon Corp (FHC), and Seadrill Ltd. (SDRL): These are very small (less than ~1% of the portfolio each) new stakes established this quarter.Stake Disposals:Global Payments (GPN): GPN was a 3.43% of the portfolio stake. It was established in Q4 2021 at prices between ~$118 and ~$161. Q3 2022 saw the stake sold down by ~47% at prices between ~$108 and ~$137. There was a ~120% stake increase in the last two quarters at prices between ~$93 and ~$125. The disposal this quarter was at prices between ~$96 and ~$113. The stock is now at ~$126.Note: Greenlight’s Q2 2023 letter mentioned a ~6% IRR on this holding. They exited as they were uncomfortable with the company’s increasingly large adjustments to reported numbers and an abrupt CEO change.Civitas Resources (CIVI): The 1.70% CIVI stake saw a roughly two-thirds increase during Q4 2022 at prices between ~$56 and ~$71 and it is now at $85.24. The position was sold this quarter at prices between ~$65 and ~$74.Note: The investment had a ~35% IRR. The stake came about through purchasing distressed debt of Extraction Oil & Gas before it’s bankruptcy in June 2020.Concentrix Corp (CNXC): The small 1.37% CNXC position saw a ~150% stake increase during Q3 2022 at prices between ~$110 and ~$137. That was followed with a ~115% increase this quarter at prices between ~$118 and ~$151. The disposal this quarter was at prices between ~$81 and ~$122. The stock currently trades at ~$72.Stake Increases:Consol Energy (CEIX): CEIX is a large (top three) ~9% of the portfolio position that came about as a result of the merger with Consol Coal Resources that closed in December 2020. 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 three quarters through Q4 2022 saw a ~23% net increase at prices between ~$35.50 and ~$77.50. There was another ~50% increase last quarter at prices between ~$51 and ~$64. This quarter also saw a minor ~5% further increase. CEIX currently trades at ~$93.Black Knight Inc. (BKI): BKI was a merger-arbitrage stake established last quarter at a cost-basis of $60.59. Intercontinental Exchange (ICE) acquired them for a $75 per share cash-and-stock deal that closed last week.Capri Holdings (CPRI): The 2.77% CPRI position was purchased in 2021 at prices between ~$40.50 and ~$67. Q1 2022 saw a ~12% trimming while next quarter there was a ~20% stake increase. That was followed by a ~75% increase in the last two quarters at prices between ~$34 and ~$68. The stock is now at $52.78.Southwestern Energy (SWN): SWN is a 2.60% of the portfolio stake established in Q1 2022 at an average price of $6.58. The stock currently trades at $6.66. There was a ~48% stake increase during Q3 2022 at prices between ~$5.60 and ~$8.10. That was followed by a similar increase in the next quarter at prices between ~$5.50 and ~$7.25. The last two quarters saw only minor adjustments.Graphic Packaging Holding (GPK): The small ~2% stake in GPK saw a two-thirds increase this quarter at prices between ~$23.50 and ~$27. The stock currently trades at $22.10.Stake Decreases:Tenet Healthcare (THC) and Gulfport Energy (GPOR): THC is a 3.56% of the portfolio position purchased during Q4 2022 at a cost-basis of $48.61. The stock currently trades at $74.73. There was a ~117% stake increase last quarter at prices between ~$49 and ~$62. This quarter saw a one-third reduction at prices between ~$58 and ~$82. GPOR is a ~1% of the portfolio stake built in the last two quarters at prices between ~$61 and ~$97. It is now at ~$121. There was a ~25% selling this quarter at prices between ~$76 and ~$108.The ODP Corp (ODP): ODP is a 3.33% of the portfolio position primarily built over the three quarters through Q4 2021 at prices between ~$36 and ~$50. The stock currently trades at ~$48. There was a ~20% stake increase in Q2 2022 at prices between ~$29 and ~$46. The last three quarters saw minor trimming.Note: Greenlight’s cost-basis is ~$44.Kyndryl Holdings (KD): KD is a 2.77% of the portfolio position built over the five quarters through Q4 2022 at prices between ~$8.25 and ~$41 and the stock is now at ~$17. There was a ~50% selling this quarter at prices between ~$11.50 and ~$15.Teck Resources (TECK): TECK is a 2.66% of the portfolio position purchased in Q2 2020 at prices between $7 and $12.25. 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 next three quarters at prices between ~$26 and ~$46. The last three quarters had seen a ~25% increase at prices between ~$26 and ~$44. This quarter saw a ~45% reduction at prices between ~$36.50 and ~$49. The stock currently trades at $40.31.Weatherford plc (WFRD): The 1.35% of the portfolio position in WFRD was purchased in Q1 2022 at an average price of $32.27 and it is now at ~$94. Q4 2022 saw a ~22% reduction at prices between ~$32 and ~$51. That was followed by similar selling this quarter at prices between ~$56 and ~$66.iShares Silver Trust (SLV): SLV is a 1.21% of the portfolio position established in Q3 2021 at prices between ~$20 and ~$24.50 and the stock currently trades at ~$21. There was a ~17% trimming this quarter.New York Community Bancorp (NYCB): The 0.90% NYCB stake was established last quarter at prices between ~$6.40 and ~$10.40. It was sold down by ~25% this quarter at prices between ~$8.50 and ~$11. The stock is now at $11.88.Resideo Technologies (REZI): The 0.65% REZI stake was established in Q2 2020 at prices between $3.95 and $12.50. H2 2020 saw a one-third increase at prices between ~$10 and ~$22.50 while the 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. There was a two-thirds reduction in the last two quarters at prices between ~$16 and ~$20. The stock is now at ~$16.Kept Steady:Green Brick Partners (GRBK): GRBK is currently the largest position at ~44% 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 $45.61.Note: Regulatory filings since the quarter ended show them owning ~13.1M shares (~29% of the business). This is compared to 16.6M shares in the 13F report. The reduction was primarily due to in-kind distributions to redeeming shareholders rather than actual sales in the open market.Brighthouse Financial (BHF): BHF is a large (top three) stake at ~7% 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. There was a ~70% selling in Q4 2018 at prices between $29 and $46.50. The stock is currently at $49.69.Note: BHF is a spinoff of MetLife’s (MET) U.S. Retail business (annuities and life insurance) that started trading in July 2017.LivaNova plc (LIVN): The 2.50% of the portfolio stake in LIVN was built over the six quarters through Q3 2022 at prices between ~$44 and ~$92. The stock is now at $53.64. There was a ~23% stake increase last quarter at prices between ~$41 and ~$58.SPDR Gold Trust (GLD): The 1.91% 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. H1 2022 had seen a ~140% stake increase at prices between ~$167 and ~$192. The next two quarters saw a ~24% reduction at prices between ~$151 and ~$170. It currently trades at ~$178.First Citizens BancShares (FCNCA): FCNCA is a small 1.36% of the portfolio position purchased last quarter at prices between ~$509 and ~$973 and the stock currently trades well above that range at ~$1327.GoPro Inc. (GPRO): The 0.50% 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 $3.44.The spreadsheet below highlights changes to Greenlight’s 13F stock holdings in Q2 2023:Source: John Vincent. Data constructed from Greenlight Capital’s 13F filings for Q1 2023 and Q2 2023.Info from Q1 2023 Letter – Performance – negative 1.3% through Q1 2023 vs 7.5% for S&P. ~12.6% annualized since 1996 inception vs 9.1% annualized for S&P 500 index. Commentary – POSTURE: likely change in Fed policy post SVB might be bullish for both inflation and stocks. Hence switched from bearish to neutral stance – shorts were mostly covered – net long back at long-term average. GRBK – biggest loser in 2022 is now the biggest winner – highest gross margins in the industry. Also enviable land position in the most desirable markets. Single-digit P/E needs should get rerated. KD – “bad business” spinoff is second-biggest winner in the quarter. Has no-margin contracts (IBM allowed it to be a loss leader to sell more hardware for years) that would take several years to work through. Should rerate eventually as KD closes the margin gap with its peers. OSH – bearish commentary on CVS acquisition & VBCs in general – assumptions are outrageous - $1M adjusted revenue per doctor is what they get now with zero margins – to justify price, have to triple doctor count while increasing margins from below 0 to 100% ($1M per doctor EBITDA). Further, the proxy revealed that CVS raised its uncontested bid several times in the auction for OSH. BHF – went down with banks – they own bonds but they are ultra-long duration and so is a beneficiary of higher rates. Short Portfolio – liquidated a bunch. Closed bubble basket shorts.  Macro - small detractor . Winners: . Detractors:  .   New Positions: BKI, NYCB, and FCNCA – NYCB and FCNCA are similar. Beneficiaries of Signature and Silicon Valley Bank liquidations. BKI is merger arbitrage. FTC has sued to block deal. Deal break value is conservatively $51. Cost-basis is $60.59. Market thinks there is only 25% chance deal will go through while they believe it is closer to 75%. . Exits: . Exposure - 106% long and 50% short.  Largest Long Positions –Brighthouse Financial, CONSOL Energy, Green brick Partners, Kyndryl Holdings, and Teck Resources.Regulatory filings from 3/5/2023 to 5/22/2023: None."