"Tracking David Einhorn’s Portfolio – Q2 2015 Update"
"David Einhorn's US long portfolio increased from $7.65B to $7.97B this quarter.Greenlight's long/short ratio is at 103% long and 86% short compared to 102% long and 88% short last quarter.Greenlight added Applied Materials and Michael Kors while substantially increasing stakes in General Motors, Bank of New York Mellon, and UIL Holdings.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 08/14/2015. Please visit our  series for an idea on his investment philosophy and our  highlighting the fund’s moves during Q1 2015.Greenlight Capital’s US long portfolio stood at $7.97B this quarter. It is up 2.4% compared to $7.79B as of last quarter. The long/short ratio shifted marginally to the long side this quarter: 103% long and 86% short as of Q2 2015 compared to 102% long and 88% short as of Q1 2015 - net exposure at 17% compared to 14% last quarter. The top five holdings represent 42.25% of the US long portfolio. The number of 13F stakes decreased from 43 to 41.Einhorn’s Q2 2015 letter reported that the fund lost 1.5% in the quarter and 3.3% for H1 2015 - Consol Energy and Micron Technology were the big losers while Sunedison was a winner. Greenlight is known to be short Pioneer Natural Resources (PXD). The letter also revealed two short positions that were covered in the quarter: Intuitive Surgicals (ISRG) for a small gain and Vale SA ADR (VALE) for a large gain.To learn about David Einhorn and the perils of shorting, check-out his “”.New Stakes:Applied Materials (AMAT): AMAT is a 1.93% of the US long portfolio stake established this quarter at a cost-basis of $20.31. The stock currently trades well below that at $16.64. For investors attempting to follow Einhorn, AMAT is a good option to consider for further research.Michael Kors Holdings (KORS): KORS is a 1.91% of the US long portfolio position established this quarter at prices between $42 and $66. The stock currently trades near the low-end of that range at $43.37.Dillard’s (DDS), Hertz Global (HTZ), Owens Illinois (OI), and Twenty First Century Fox (FOXA): These are very small (less than ~1.25% of the portfolio each) stakes established this quarter.Note: Hertz and Owens Illinois have seen recent activist involvement: Carl Icahn has a large stake in Hertz while Alex Roepers has a huge position in Owens Illinois. Twentry First Century Fox is a popular stake among super-investors: Donald Yacktman, Wallace Weitz, and Leon Cooperman among others have substantial positions.Stake Disposals:Civeo Corporation (CVEO): CVEO was a minutely small 0.35% of the US long portfolio position established in Q2 2014 as a result of its spin-off from Oil States International. Einhorn held 2.75M shares of Oil States and per the spin-off terms received 5.5M shares (2:1 ratio). In Q4 2014, the position was increased by ~73% at prices between $3.92 and $13.25.  The elimination this quarter happened at prices between $2.54 and $4.80.Note: CVEO started trading in May 2014 at $22.80 and the stock is currently at $1.58.Conn’s Inc. (CONN): CONN was a 1.41% of the US long portfolio position established in Q1 2014 at an average purchase price of $35.49. The exit this quarter resulted in a small overall loss. The stock currently trades at $35.36.Note: The specialty retailer fell ~50% in February 2014 after announcing increased credit losses. Einhorn purchased the shares on the thesis that the market had over-reacted. The shares fell to the mid-teens in Q4 2014. Greenlight exited as the stock price recovered after they unveiled plans to sell their loan book.EMC Corporation (EMC): The original position in EMC was established in Q4 2013 at around $24 per share. It was doubled in Q1 2014 at prices between $23.66 and $28.18. Q4 2014 saw a ~39% increase at prices between $26.89 and $30.89 but last quarter the pattern reversed: ~48% reduction at prices between $25.17 and $29.83. The remaining 1.41% stake was eliminated this quarter at prices between $25.47 and $27.46. The stock currently trades at $26.62. Overall, the partnership had a small profit in the EMC round-trip.Keysight Technologies (KEYS) & Life Time Fitness (LTM): These are small (less than ~2% of the portfolio each) positions established in Q4 2014 and eliminated this quarter. Keysight was a 2.15% position purchased at a cost-basis of ~$31 and the elimination was at prices between $31 and $37. The stock currently trades at $30.37. LTM was a 1.68% stake established at prices between $47.77 and $56.75. The stake got eliminated as LTM got acquired in a cash-deal for $72.10 in a private equity transaction that closed in June.Marvell Technology Group (MRVL): MRVL was a top-five position at 4.77% of the US long portfolio as of Q4 2014. It was reduced by almost two-thirds to a 1.74% portfolio stake last quarter at prices between $14.28 and $16.59 and eliminated this quarter at prices between $13.14 and $15.38. Q3 2014 had also seen a one-third reduction at prices between $12.80 and $14.64. The original position was from Q3 2011. Einhorn’s cost-basis was ~$11. Greenlight had an annualized ~15% return compounded over several years on this position.Time Inc. (TIME): Time Warner (TWX) spun-off Time Inc. (magazine publisher subsidiary) in June 2014. Greenlight established a 1.13% stake in Q2 2014 at prices between $20.85 and $24.43. Q3 2014 saw an almost one-third increase at prices between $22.59 and $25.62. In Q4 2014, the pattern reversed as the position was reduced by ~11% at prices between $19.41 and $24.98. Last quarter, the remaining stake was almost eliminated at prices between $21.64 and $25.60 and the minutely small remainder stake was disposed of this quarter. The stock currently trades at $21.69.FCB Financial Holdings (FCB) and Nokia Corporation (NOK): These are very small (less than ~1% of the portfolio each) stakes eliminated this quarter. The NOK exit was at a healthy profit.Stake Increases:Bank of New York Mellon (BK) and Ingram Micro (IM): These two positions were established last quarter and increased this quarter. BK saw a more than 10x increase this quarter at prices between $40 and $44. It is now at 2.11% of the portfolio. The stock currently trades at $44.07. The IM position saw a ~9% increase this quarter but is still minutely small at 0.38%.Consol Energy (CNX): CNX is a large 6.23% 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 last quarter saw a further ~55% increase at prices between $26.56 and $34.34. This quarter also saw a ~11% increase at prices between $21.74 and $33.34. The stock currently trades at $12.93. The substantial stake build-up indicates a clear bullish bias. Einhorn controls ~10% of the business.Note: CNX completed an IPO for its coal business as CNX Coal Resources (CNXC) last month. Greenlight established a huge position in the MLP soon after.General Motors (GM): GM is a large (top-five) 6.12% of the US long portfolio positon established in Q4 2014 at a cost-basis of $34.62. The stake was increased by ~55% this quarter at prices between $33.23 and $37.50. The stock currently trades below his purchase price ranges at $31.50. For investors attempting to follow Einhorn, GM is a good option to consider for further research.Note: GM was Greenlight’s third-largest position at 9.55% of the US long portfolio in Q4 2013. That stake was disposed of the following quarter at an average exit price of $35.76 compared to an average entry price of $23.87. Greenlight expected 2014 to be a break-out earnings year but the guidance disappointed and that resulted in the exit decision. The current thesis boils down to the expectation that GM will likely beat the 2015 earnings projection of $4.63 per share.Green Brick Partners (GRBK): The 3.31% 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.Note: The share-count increased by ~8.5M shares this quarter but Einhorn’s ownership stake remained steady as GRBK had a ~17M share common-stock offering in June.Micron Technology (MU): MU is Einhorn’s third-largest 13F position at 8.97% of the US long portfolio. The original stake was purchased in Q4 2013 at an average cost-basis of $16.49. Q1 2014 saw an 8% trimming at prices between $20.67 and $25.49 and the following quarter saw an additional 8% trimming at prices between $21 and $32.50. In Q3 2014, almost 25% of the remaining position was sold at prices between $29.68 and $34.64. This quarter saw a ~13% increase at prices between $18.73 and $29.52. The stock currently trades at $16.95.Sunedison Semiconductor (SEMI): SEMI is a small 0.80% of the US long portfolio stake established last quarter at prices between $15.19 and $27.14. It was increased by 37% this quarter at prices between $17.27 and $26.46. The stock currently trades below his purchase price ranges at $12.95. Einhorn controls ~9% of the business.Note: Seth Klarman also has a large ~19% stake in the business.UIL Holdings Corporation (UIL): UIL is a medium-sized 2.87% of the portfolio stake. It was established last quarter at prices between $42 and $52 and increased by ~92% this quarter at prices between $45.82 and $51.42. The stock currently trades at $47.62.Note: UIL stock experienced a ~25% price-spike in February as Iberdola made an acquisition offer. Connecticut utility regulators rejected the proposal in June.Stake Decreases:Aecom Technology (ACM): ACM is a 2.64% 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. This quarter saw a marginal decrease. The stock currently trades at $29.Apple Inc. (AAPL): AAPL is Einhorn’s largest position at 11.61% of the US long portfolio. The stake was first purchased in the low-40s price-range in 2010. It was reduced by 25% in Q3 2012 at prices between $82 and $100 but upped by 45% in Q4 2012 at prices between $72 and $96. In Q1 2013, the position was again increased by around 50% at prices between $60 and $78. Last six quarters have seen a combined ~55% reduction at prices between $72 and $133. The stock currently trades at $116. Einhorn is opportunistically realizing large long-term gains from this position.Chicago Bridge & Iron (CBI): CBI is a 4.22% of the US long portfolio position established in Q4 2014 at prices between $37.78 and $57.85 and increased by ~130% last quarter at prices between $34.51 and $49.48. This quarter saw a marginal decrease. The stock currently trades at $51.74.Citizens Financial Group (CFG): CFG is a 3.98% position established at an average-cost-basis of $22.01 in Q3 2014. Last two quarters had seen a ~50% stake increase at prices between $21.80 and $25.60. The stock currently trades at $26.38. This quarter saw a marginal decrease.Note: It is a carve-out from Royal Bank of Scotland (RBS) that debut on 9/23/2014.Halyard Health (HYH): HYH is a minutely small 0.06% of the US long portfolio position. It was established in Q4 2014 at prices between $35.82 and $48.30 and reduced by ~70% last quarter at prices between $43.07 and $49.62. This quarter, the remaining stake was almost eliminated at prices between $40 and $51. The stock currently trades at $32.97.Note: HYH, a surgical infection prevention products business is a spin-off from Kimberly Clark (KMB). It started trading in November 2014.IAC Interactive (IACI): IACI 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. This quarter saw a ~37% reduction at prices between $67 and $81. The stock currently trades at $75.15 and the stake is at 1.60% of the US long portfolio.Kapstone Paper & Packaging (KS): KS is a minutely small 0.27% of the US long portfolio stake. It was increased by ~60% last quarter at prices between $28.82 and $35.43 but this quarter saw an about-turn: one-third reduction at prices between $23 and $33. The stock currently trades at $23.84.Lam Research (LRCX): LRCX is a 1.67% of the US long portfolio position first purchased in Q1 2014 and more than doubled the following quarter. Greenlight’s cost-basis is at $54.07 and the stock currently trades at $72.71. Last quarter saw a one-third reduction at prices between $70.24 and $84.48 and this quarter saw a marginal further reduction.Macys Inc. (M): M is a small 0.86% of the US long portfolio stake established last quarter at prices between $62.10 and $67.81. The position was sold down by ~39% this quarter at prices between $63 and $71. The stock currently trades at $63.36.ON Semiconductor (ON): ON is a 2.54% position 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 two quarters have seen minor reductions. The stock currently trades at $9.91.NorthStar Asset Management (NSAM): The 0.71% NSAM position was established as a result of the spin-off of NSAM from NorthStar Realty Finance that was completed in July 2014.  It currently trades at $18.47 compared to an IPO price of $18.80. The original stake was reduced by ~30% last quarter at prices between $20.56 and $24.75. This quarter also saw a ~4% further reduction.Spirit Aerosystems (SPR): SPR is a 1.48% position that had seen consistent buying since the stake establishment in Q1 2013. The position was increased by just over 40% in Q4 2013 at prices between $21.50 and $26 and another 20% in Q1 2014 at prices between $26.51 and $35.89. In Q3 2014, the pattern reversed as the stake was reduced by 29% at prices between $32.57 and $39.73. This quarter saw a minor decrease. The stock currently trades at $56.Sunedison Inc. (SUNE): The very small 0.23% of the US long portfolio position in SUNE 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. Last quarter saw a further ~18% increase at prices between $14.30 and $22.86. This quarter saw a marginal decrease. The stock currently trades at $14.15. SUNE is currently Greenlight’s second-largest 13F position at 9.32% of the US long portfolio and they control ~8% of the business.Note: SUNE completed the IPO of its yield-co TerraForm Power (TERP) in July 2014 and TerraForm Global (GLBL) this month.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% this quarter at prices between $23.70 and $28.62 and the stock currently trades at $30.72. The stake is at 1.44% of the US long portfolio and Einhorn controls ~4.9% of the business.Voya Financial (VOYA) previously ING US: The 3.42% VOYA position was established in Q2 2013 at a cost-basis of $20.29. Q4 2014 saw a 37% increase at prices between $35.23 and $43.07. Last quarter saw a minor increase while this quarter saw a marginal decrease. The stock has more than doubled from his original purchase and currently trades at $45.05.Kept Steady:AerCap Holdings N.V. (AER): AER is a 3.21% 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% last quarter at prices between $37.84 and $45.94. The stock currently trades at $47.27.Liberty Global Class A & Class C (LBTYA) (LBTYK): Liberty Global position accounts for 2.76% 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.Market Vectors Gold Miner ETF (GDX): GDX stake is currently at 1.90%. It is a very long-term position and 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 $14.49.Note: Einhorn also has a large holding (top-five) in physical gold.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. The stock currently trades at $28.60.Note 1: In the Ira Sohn conference in May 2013, Einhorn highlighted this position saying the shares could be worth as high as $155 per share, if the accommodation business it owns is spun-off as an REIT. The business was spun-off as Civeo Corporation (CVEO) in May 2014.Note 2: The performance implied by the quoted prices above understates the actual performance due to the effect of the spin-off of CVEO from OIS. The spin-off terms called for OIS shareholders to receive two shares of CVEO for every share of OIS held.Time Warner Inc. (TWX): TWX is a fairly large 4.14% of the US long portfolio stake established in Q4 2014 at a cost-basis of $72.72. The stock currently trades at $78.23.Tri Pointe Homes (TPH): TPH is a very small 0.92% of the US long portfolio stake established in Q4 2014 at prices between $12.73 and $15.34 and increased by ~9% last quarter at prices between $13.59 and $16.03. The stock currently trades at $14.77.Note: TPH, a homebuilder with significant exposure to the California market is a spin-off from Weyerhaeuser Company (WY). It started trading in February 2013. The stock is still below the IPO price of $19.Fifth Street Asset Management (FSAM), Santander Consumer USA Holdings (SC), Scientific Games Corp. (SGMS), Vodafone Group (VOD), and Yahoo Inc. (YHOO): These are very small (less than ~1% of the US long portfolio each) stakes that were kept steady this quarter. Greenlight controls 9.98% of FSAM.Per Greenlight’s Q2 2015 letter, the top disclosed long positions in the partnership are Apple, Consol Energy, General Motors, gold, Micron Technology and SunEdison.  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 Q2 2015:"