"Tracking David Einhorn’s Portfolio – Q1 2017 Update"
"David Einhorn's US long portfolio value increased from $5.82B to $7.19B this quarter.Greenlight's long/short ratio is at 108% long and 80% short compared to 106% long and 81% short last quarter.Greenlight almost doubled General Motors while reducing Apple, Time Warner, and Chemours.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 05/15/2017. Please visit our  series for an idea on his investment philosophy and our  for the fund’s moves during Q4 2016.Greenlight Capital’s US long portfolio value stood at $7.19B this quarter. It is up ~24% compared to $5.82B as of last quarter. The long/short ratio shifted marginally to the short side this quarter: 108% long and 80% short - net exposure at 28% compared to 25% EOY2016. The top five holdings represent ~62% of the US long portfolio. The number of 13F stakes increased from 31 to 35.Einhorn’s Q1 2017 letter reported that the fund returned 1.3% in the quarter. This is compared to 6.1% for the S&P 500 Index. In 2016, they were up 8.4% compared to up 12% for the S&P 500 Index. Since inception in May 1996, the fund is up ~16% annualized net-of-fees and expenses. To learn about David Einhorn and the perils of shorting, check-out his “”.New Stakes:Perrigo plc (PRGO) and Conduent Inc. (CNDT): These are small (less than ~1.5% of the portfolio each) positions established this quarter. The PRGO position was purchased at prices between $66 and $87 and the stock is now at $74.55. Conduent, the Xerox spinoff started trading last December at ~$16 and currently goes for $17.27. The position was established at prices between $13.25 and $17.25.Note 1: Perrigo plc is back in the portfolio after a quarter’s gap: a very small stake purchased in Q2 2016 was disposed of the following quarter.Note 2: Conduent’s business is identical to Affiliated Computer Services which Xerox (XRX) had acquired in 2010.Note 3: Greenlight had a fairly large ~3% portfolio stake in Xerox: it was purchased in 2011 in the low-7s and disposed of in 2013 in the mid-8s.Micron Technology (MU), Alere Inc. (ALR), Varex Imaging (VREX), and Clipper Realty (CLPR): These are very small stakes (less than ~0.5% of the portfolio each) established this quarter.Note 1: Varex Imaging is a spinoff from Varian Medical Systems (VAR) that started trading at ~$27 in January and currently goes for ~$34.Note 2: Clipper Realty, the New York focused residential REIT had an IPO in February at ~$13.50 per share. The stock is currently at $10.89.Stake Disposals:Avangrid Inc. (AGR) previously UIL Holdings (UIL): AGR was a ~1% of the portfolio stake. It was established in Q1 2015 at prices between $31.50 and $41.50 and increased by ~90% the following quarter at prices between $35 and $41. 2016 saw a combined ~70% reduction at prices between $37.50 and $46.50 and the disposal this quarter was at prices between $37.50 and $44. The stock currently trades at $44.22.Note: UIL merged with Iberdrola USA to form the new entity Avangrid which started trading in December 2015. 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.Yelp Inc. (YELP):  YELP was a very small 0.57% of the portfolio stake established in Q1 2016 at a cost-basis of $21.16. Q2 2016 saw a ~10% trimming at prices between $19.50 and $30.50 and that was followed with another ~21% selling last quarter at prices between $29 and $42. The disposal over the last two quarters happened at prices between $31.50 and $43. The stock is now at $28.52. Greenlight harvested gains.Stake Increases:General Motors (GM): GM is Greenlight’s largest position at ~36% of the portfolio. The position was established during the first three quarters of 2015 at prices between $28.50 and $39. The three quarters thru Q2 2016 had also seen a combined ~22% increase at prices between $27 and $34. The position was more than doubled last quarter thru the purchase of Calls as the underlying traded between $31 and $38. The stake was almost doubled again this quarter at prices between $34 and $38.50. The stock currently trades at $33.42. For investors attempting to follow Einhorn, GM is a good option to consider for further research.Note 1: Greenlight controls ~5% of General Motors.Note 2: In March, Greenlight proposed GM shares be split into two classes (one with dividend & the other without) but management rejected the plan. Last month, Greenlight started preparing for a proxy fight and nominated three members to the board.Note 3: Greenlight had a previous successful roundtrip with GM: A huge ~10% stake was disposed in Q1 2014 at an average exit price of $35.76 compared to an average entry price of $23.87.Consol Energy (CNX): CNX is a fairly large 5.29% stake purchased in Q3 2014 at prices between $36.50 and $46.  The position was increased by over 170% in the following quarter at prices between $32 and $41.50. H1 2015 saw an additional ~70% increase at prices between $22 and $34 and that was followed by another ~30% increase in Q3 2015 at prices between $9.50 and $22. Last three quarters had seen a ~50% combined reduction at prices between $11 and $22. The pattern reversed this quarter: ~50% increase at prices between $14.90 and $19.50. The stock currently trades at $16.22. For investors attempting to follow Einhorn, CNX is a good option to consider for further research.Note: Greenlight controls ~10% of Consol Energy.Mylan NV (MYL): MYL is a fairly large 4.71% of the portfolio position established in Q4 2015 at a cost-basis of $45.32. Q2 2016 saw a ~70% increase at prices between $38.50 and $49 and that was followed with another ~30% increase in the following quarter at prices between $38 and $50. Last quarter also saw a one-third increase at prices between $34 and $39. The stock is currently at $39.15. There was a marginal increase this quarter.Dillard’s (DDS): The 1.37% DDS position had seen a ~40% increase in Q4 2015 at prices between $66 and $94. Q2 2016 saw a ~25% further increase at prices between $55.50 and $88. The stock is now at $49.14.  Last quarter saw a ~9% trimming while this quarter saw a ~7% increase.Note: Greenlight controls ~6.7% of Dillard’s.Syngenta AG (SYT) and Fred’s Inc. (FRED): These are small stakes established last quarter and increased this quarter. The 1.26% SYT stake was purchased at prices between $75.50 and $88 and increased by ~10% this quarter. The stock is now at $92.76. The 0.40% FRED position was established at prices between $8 and $20 and increased by ~45% this quarter at prices between $13 and $19. The stock is now at $14.26.Stake Decreases:AerCap Holdings N.V. (AER): AER is a large (top three) ~8% position. It 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% further increase at prices between $25.50 and $42. The stock currently trades at $44.78. There was marginal trimming in the last two quarters.Note: Greenlight controls ~7% of AerCap Holdings.Apple Inc. (AAPL): AAPL is Einhorn’s third-largest position at ~8% 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: ~60% increase at prices between $103 and $132. Q4 2015 saw a ~50% reduction at prices between $105 and $123 while in Q1 2016 there was a ~30% increase at prices between $93 and $110. The next two quarters had seen a combined ~35% selling at prices between $90 and $116. The pattern reversed again last quarter: ~12% increase at prices between $106 and $118. There was a roughly one-third reduction this quarter at prices between $116 and $144. The stock currently trades at $156.Time Warner Inc. (TWX): TWX is a ~3% of the US long portfolio stake. It was established in Q4 2014 at a cost-basis of $72.72. Q4 2015 saw a ~70% increase at prices between $63.50 and $77.50. 2016 saw a combined ~50% reduction at prices between $62 and $96 and that was followed with a ~40% selling this quarter at prices between $93 and $99. The stock currently trades at $97.87. Greenlight is harvesting gains.Chemours Co. (CC):  CC is currently a ~2.7% portfolio stake. It saw a ~85% increase in Q2 2016 at prices between $7 and $10.50. Last quarter saw a ~45% selling at prices between $15 and $30 and that was followed with another ~45% reduction this quarter at prices between $21 and $39. The stock is now at $45.38. Greenlight is harvesting huge gains.Note: Greenlight’s cost-basis on CC is $6.58. The buy thesis was based on earnings reaching ~$2 in 2017 and ~$3 in 2018. Greenlight also believed that the litigation threat is overstated.Rite Aid (RAD): RAD is a ~1% stake established in Q2 2016 at prices between $7.50 and $8.20 and increased by ~30% in Q3 2016 at prices between $6.85 and $8.21. Last quarter saw another ~50% increase at prices between $6.50 and $8.50. There was an about turn this quarter: ~20% sold at prices between $4.25 and $8.70. The stock currently trades at $3.78.Note: Walgreens Boots Alliance (WBA) was to acquire Rite Aid at $9 per share but in January the price was negotiated down to a $6.50 to $7 range.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. The pattern reversed in Q4 2015: two-thirds increase at prices between $59 and $72. Q1 2016 saw another about-turn: ~55% reduction at prices between $40 and $60 and that was followed with another ~12% trimming in the following quarter. Last two quarters have also seen another one-third reduction at prices between $57 and $77. The stock currently trades at $104 and the stake is at 0.72% of the US long portfolio.DSW Inc. (DSW): DSW is a small 0.59% of the portfolio position established in Q4 2015 at prices between $21.50 and $26.50 and increased by ~20% in Q2 2016 at prices between $19 and $28. There was a ~16% selling in Q3 2016 at prices between $20.50 and $26 and that was followed with another ~40% reduction last quarter at prices between $20 and $26. The stock currently trades at $18.65. There was a ~5% trimming this quarter.Quorum Health (QHC) and FMC Corporation (FMC): These are very small (less than ~0.5% of the US long portfolio each) stakes that saw reductions this quarter.Note: Quorum Health (QHC) is a spinoff from Community Health Systems (CYH) that started trading in April 2016. The terms called for CYH shareholders to receive one share for every four shares held. Greenlight had CYH shares for which they received QHC shares in that ratio. QHC is down ~80% since the spinoff. Greenlight controls ~7.2% of Quorum Health.Kept Steady:Green Brick Partners (GRBK): The 3.34% 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 (October 2014) with Greenlight owning 49% of the business. David Einhorn was appointed Chairman of the Board following the transaction.Voya Financial (VOYA) previously ING US: The ~3% VOYA position was established in Q2 2013 at a cost-basis of $20.29. Q1 2016 saw a ~20% increase at prices between $26 and $37 and the following quarter saw another ~13% further increase at prices between $23 and $33.50. The stock currently trades at $36.39. There was a very minor ~5% further increase in Q3 2016 and that was followed with a ~15% increase last quarter at prices between $28.50 and $41.Yahoo Inc. (YHOO): The 2.76% YHOO stake saw a huge ~120% stake increase in Q1 2016 at prices between $27 and $37. The stock is currently at $50.96. Last two quarters had seen marginal trimming.Gold Miner ETF (GDX): GDX stake is currently at ~2.5%. 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 $16.50 and $22. The stock currently trades at $22.96. Last two quarters had seen marginal trimming.Note: Einhorn also has a large holding (top-five) in physical gold. He has a long-term bullish stance on gold.Liberty Global (LBTYA) (LBTYK): Liberty Global position accounts for 2.23% 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. Last significant activity was in Q1 2016 when the stake saw a ~6% increase.Calpine Corporation (CPN): The ~1.7% CPN position was purchased in Q2 2016 at prices between $13.50 and $16 and almost doubled the following quarter at prices between $12 and $15. The stock is now at $12.40. Last quarter had seen minor trimming.Amerco (UHAL): The 1.17% of the portfolio UHAL stake was established in Q2 2016 at prices between $337 and $380 and increased by ~180% the following quarter at prices between $321 and $397. The stock currently trades at $367.Alcoa Corporation (AA), Amaya Inc. (AYA), CNX Coal Resources LP (CNXC), Cigna Corporation (CI), Monsanto Company (MON), PVH Corporation (PVH), and Tri Pointe Group (TPH): These are very small (less than ~1.5% of the US long portfolio each) stakes kept steady this quarter.Note: Last September, Bayer AG (BAYRY) agreed to buy Monsanto in a $128 per share all-cash deal. Greenlight has a large position in Bayer AG (native listed shares and so not in the 13F report). At the Robinhood Investor Conference last November, Bayer AG was Einhorn’s stock pick.Per Greenlight’s Q1 2017 letter, the top disclosed long positions were AerCap, Bayer, CONSOL Energy, General Motors, and gold. The letter also identified the winners and losers for the quarter: Long stakes in Apple, Chemours, and Gold were winners while the “bubble basket”, Rite Aid, and the short Tesla (TSLA) stake were losers.Note 1: Greenlight is known to be short Netflix (NFLX), a bunch of oil frackers, and a bunch of industrial cyclicals including Caterpillar (CAT).Note 2: Per Q1 2017 letter, Greenlight realized losses in their short book during the quarter: three Canadian bank stocks, LyondellBasell Industries NV (LYB), and RPC Inc. (RES) short stakes were covered. Signet Jewelers (SIG) was a short stake that was exited at a gain.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 2017:Regulatory Filings Thru 2/19/2017: 13G/As filed 2/14/2017: CNX - 15.4M shares - 6.7%. DDS - 1.8M shares - 6%. AER - 12.6M shares - 6.9%. QHC - 2.5M shares - 8.5%.: Q4 2016 return is 4.5%, YTD 8.4%. S&P500 3.8% & 12.0% respectively - for the year, the long-portfolio returned 19.9% while the short lost 11.7%. 16.1% annualized since May 1996 inception. On Trump presidency: long a variety of low-multiple, tax-paying US value stocks: a) Amerco, CC, Dillard’s, and DSW, b) Long Apple, c) Long GM, d) Short “bubble basket” - they don’t have profits, and so won’t benefit from corporate tax cuts, also high-growth low/no-profit businesses - NFLX, d) short oil frackers, e) short CAT and other similar industrial cyclicals, and f) likes gold as not having a core policy can cause uncertainty and less stability.  Winners: CC, GM, Resona. Losers: gold.   NEW Longs: mid-size financial business in Europe was the only new position, Increased Bayer & GM substantially as well.  SHORT: .  EXITS: Aercom (ACM) - modest gain - revenue synergies with URS integration did not materialize and declining oil&gas business headwind. KORS - 20% IRR as the business stabilized - exited as potential global growth drivers disappointed and department store promotions in the US eroded pricing power at company owned stores. TTWO - doubled money over 3-year holding period - exited as analyst estimates have caught up with their own estimates. Six-year short in FLSmidth covered at a decent gain. MJN short covered at a gain. RAI short covered at -38% IRR - expected menthol regulations never came to fruition & BAT buyout.   Largest disclosed longs: AerCap, Apple, CONSOL Energy, General Motors, and Gold. Long/Short Ratio: 106% long and 81% short.11/28/2016 Robinhood Conference Pick: ."