"Tracking David Einhorn’s Greenlight Capital Portfolio – Q4 2021 Update"
"David Einhorn's 13F stock portfolio value increased from $1.49B to $1.75B this quarter.Greenlight increased Capri Holdings, ODP Group, Livanova, & Victoria’s Secret while reducing Twitter, Concentrix, & EchoStar. They also added Global Payments while dropping AerCap and Fubotv.The largest three positions are at ~48% of the portfolio. As of Q4 2021, the overall portfolio is 127% long and 71% 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 2/14/2022. Please visit our  series for an idea on his investment philosophy and our  for the fund’s moves during Q3 2021.Greenlight Capital’s 13F portfolio value stood at $1.75B this quarter. It is up ~17% compared to $1.49B as of last quarter. Einhorn’s Q4 2021 letter reported that the fund returned 11.9% for 2021. This is compared to 28.7% 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: Greenlight has several minutely small stakes primarily in SPAC units, shares, and warrants.New Stakes:Tesla (TSLA) Puts: The large ~6% of the portfolio short position in TSLA through Puts was established this quarter as the underlying traded between ~$775 and ~$1230. It currently trades at ~$810.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.Global Payments (GPN): GPN is a fairly large 3.91% of the portfolio stake established this quarter at prices between ~$118 and ~$161 and the stock currently trades at ~$138. 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.Kyndryl Holdings (KD), Intel Corp (INTC), Discovery Inc. (DISCK), and Galapagos NV (GLPG): These are small (less than ~1% of the portfolio each) stakes established during the quarter. KD is a spinoff  from IBM (IT infrastructure managed services business) that started trading in November. Shares started trading at ~$41 and currently goes for ~$16.Note: Greenlight’s Q4 2021 letter had the following regarding Galapagos NV – it is valued at a negative $2.4B when adjusted for the large net cash position – despite several late-stage trial disappointments in their small-molecule drug business, their pipeline should have a positive value. Greenlight’s cost-basis is ~$53 per share. It currently trades at ~$66.Stake Disposals:AerCap Holdings N.V. (AER): AER stake was established in Q2 2014 at prices between $39 and $48. Q4 2014 thru Q3 2015 saw a combined ~270% increase at prices between $36.50 and $48.50. First three quarters of 2016 had also seen another ~70% increase at prices between $25.50 and $42. At the time, it was a top-three stake. The four quarters thru Q3 2018 saw the stake reduced by ~70% at prices between $49 and $57.50. The three quarters through Q1 2021 had seen another ~80% selling at prices between ~$23 and ~$61. That was followed with another ~20% selling last quarter at prices between ~$48 and ~$61. The disposal this quarter was at prices between ~$54.50 and ~$69. The stock currently trades at $62.81.Note: Greenlight had a ~9% IRR on this investment over a 7+ year holding period.Fubotv (FUBO): FUBO had an IPO in October 2020. Shares started trading at ~$12 and currently goes for $8.14. Greenlight’s stake goes back to earlier funding rounds and their cost-basis was ~$5 per share. Q1 2021 saw the stake reduced by two-thirds at prices between ~$21 and ~$52.40. The disposal this quarter was at prices between ~$15.50 and ~$34.Stake Increases:Change Healthcare (CHNG): CHNG is a large (top five) 4.45% of the portfolio position purchased in Q1 2020 at a cost-basis of $11.40. The stock currently trades at $21.17. There was a ~30% reduction in Q1 2021 at prices between ~$18.25 and ~$24. Last two quarters have seen minor increases.Note: UnitedHealth (UNH) is buying Change Healthcare in a $25.75 all-cash deal announced in January 2021. Last week, the DOJ sued to block the merger.Capri Holdings (CPRI): The 3.28% CPRI position was purchased this year at prices between ~$40.50 and ~$67 and it is now just above that range at $68.97.Note: Greenlight’s cost-basis is ~$56. Their Q4 2021 letter discussed the position – they are transforming into a full-scale luxury business with the acquisition of Versace and Jimmy Choo brands. Also, wholesale cuts of 30% and US retail cuts of 10% has resulted in better distribution dynamics and that has resulted in more pricing power.The ODP Corp (ODP): ODP is a 3.23% of the portfolio position primarily built over the last three quarters at prices between ~$36 and ~$50. The stock currently trades at $44.41.Note: Greenlight’s cost-basis is ~$44. Their sum-of-parts valuation is ~$55 per share and that excludes possible upside from Varis (promising but nascent digital commerce SaaS and procurement business). Also, the retail business which is expected to be separated has at-least $1B value (Staples offered to pay $1B for that business in June 2021) and their B2B distribution platform should get valued higher.LivaNova plc (LIVN): The 1.71 % of the portfolio stake in LIVN was built over the last two quarters at prices between ~$76 and ~$93. The stock is now at ~$81.Victoria’s Secret (VSCO): The 1.45% stake in VSCO was primarily built this quarter at prices between ~$47 and ~$59. The stock is now at ~$56.Note: VSCO is a spinoff from Bath & Body Works (previously L Brands) that started trading in August 2021 at ~$46 per share.Jack in the Box (JACK): JACK is 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 this quarter saw a ~40% stake increase at prices between ~$79 and ~$105. The stock currently goes for ~$87.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 stock currently trades at $27.27.Stake Decreases:Brighthouse Financial (BHF): BHF is a large (top three) stake at 11.22% 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 $54.13. There was a ~70% selling in Q4 2018 at prices between $29 and $46.50. This quarter saw a ~3% reduction.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 5.60% of the portfolio position purchased in Q2 2020 at prices between $7 and $12.25. The stock has tripled and currently trades at $36.84. 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 Last two quarters have seen a stake doubling at prices between ~$19.50 and ~$26.80. There was a ~25% selling this quarter at prices between ~$24.50 and ~$30.Note: David Einhorn pitched Teck Resources at Sohn Conference in May 2021. Greenlight’s Q4 2021 letter had the following regarding TECK – management is evaluating splitting the metallurgical coal business and that should unlock value. Also, EPS estimates have gone up a lot over the last year.Atlas Air Worldwide (AAWW): AAWW is a large 4.39% of the portfolio stake established in Q2 2020 at an average price of $36.28 per share. There was a ~45% selling this quarter at prices between ~$77.50 and ~$95. The stock currently trades at ~$77.Chemours (CC): CC is a 3.34% 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 this quarter at prices between ~$28 and ~$34. The stock is currently at $28.69.Note: Greenlight had a highly successful (4x returns) previous roundtrip with Chemours in the two-year period that ended in Q1 2018.Consol Energy (CEIX): CEIX is a 3.70% 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. CEIX currently trades at $29.60. This quarter also saw a ~11% trimming.Note: Greenlight has a 5.4% ownership stake in Consol Energy.Resideo Technologies (REZI): The 1.74% 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 this quarter. The stock is now at $25.48.GoPro Inc. (GPRO): The 1.73% GPRO stake was built over H1 2021 at prices between ~$7.50 and ~$13.50 and the stock currently trades at $8.54. There was a ~20% selling this quarter at prices between ~$8.50 and ~$11.60.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 this quarter at prices between ~$42 and ~$66. The stock is now at $35.29.Concentrix (CNXC): CNXC is a spinoff from SYNNEX Corporation 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 ~$199. 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.Danimer Scientific (DNMR): The 0.40% of the portfolio DNMR stake came about following the ~$700M EV De-SPAC transaction with Live Oak Acquisition that closed in December. Greenlight’s stake goes back to earlier funding rounds done a year ago. There was a ~25% stake increase in Q1 2021 at prices between ~$22 and ~$64. That was followed with a ~12% stake increase last quarter. The position was reduced by two-thirds this quarter at prices between ~$8.20 and ~$19.90. DNMR currently trades at $3.94.Note: Greenlight’s Q4 2021 letter had the following regarding DNMR: they invested in converts and sold their common in response to certain financial missteps by DNMR management: they doubled the size of the previously announced plant and simultaneously did a large cash acquisition. This resulted in them having to raise capital at unfavorable terms through the converts.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 last quarter at prices between ~$21.50 and ~$27. The stake was almost sold out this quarter at prices between ~$23 and ~$30. The stock is now at $22.80.Kept Steady:Green Brick Partners (GRBK): GRBK is currently the largest position at ~30% 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. They still own just over one-third of the business. The stock currently trades at $22.87.iShares Silver Trust (SLV): SLV is a 1.92% of the portfolio position established last quarter at prices between ~$20 and ~$24.50 and the stock currently trades at $22.40.SPDR Gold Trust (GLD): The 1.13% 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 ~$177. Last quarter saw a ~14% stake increase.Neubase Therapeutics (NBSE): NBSE is a small 0.44% of the portfolio position established in Q3 2019 at an average cost of $3.96. Q2 2020 saw a ~25% stake increase at prices between $6.70 and $11.51. That was followed with another one-third increase this quarter at prices between $4.60 and $9.30. The stock currently trades at $1.42. Greenlight controls ~11% of NBSE.Graphic Packaging Holding (GPK), Gulfport Energy (GPOR), News Corp (NWS), and PLBY Group (PLBY): These small stakes were kept steady this quarter.The spreadsheet below highlights changes to Greenlight’s 13F stock holdings in Q4 2021:Source: John Vincent. Data constructed from Greenlight Capital’s 13F filings for Q3 2021 and Q4 2021.Info from Q3 2021 Letter – 7/26/2021  – Performance – -2.6% in Q3 2021 vs 0.6% for S&P. ~12% annualized since 1996 inception. Commentary – inflation not “transitory” opinion piece – GRBK: PE now down to 5.6x despite 30% ROE – bullish on housing. Exposure - 127% long and 70% short , BHF – beat earnings by wide margin - $5.05 vs $3.28. Full-year consensus moved from $13.75 to $16.18 – thinks the runoff business that was suspected to be a drain is a false viewpoint – share count is down 30% and BV is now $175 – also $1B repurchase authorization. SONO – our average price is $28.45 per share – believes 15x FY2021 earnings valuation net of $4 cash is attractive at ~$32.  NEW POSITION: small stake in Countryside Properties – UK housing – entered at 5.14 pounds 6x estimate – bullish on focus on residential partnerships rather than UK residential home building.  EXITS: SYNNEX & APi Group – redeployed to new ideas after successful high return exits.  Largest Long Positions –Atlas Air Worldwide, Brighthouse Financial, Change Healthcare, Green Brick Partners, and Teck Resources.Regulatory filings from 8/25/2021 to 11/17/2021: None."