"Tracking David Einhorn’s Portfolio – Q1 2021 Update"
"David Einhorn's 13F stock portfolio value decreased from $1.66B to $1.44B this quarter.Greenlight increased Danimer Scientific and Concentrix while reducing AerCap Holdings, Fubotv, and Resideo Technologies during the quarter.The largest three positions are at ~45% of the portfolio. As of Q1 2021, the overall portfolio is 118% long and 81% short compared to 134% long and 70% short as of Q4 2020.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 5/17/2021. Please visit our  series for an idea on his investment philosophy and our  for the fund’s moves during Q4 2020.Greenlight Capital’s 13F portfolio value stood at $1.44B this quarter. It is down ~14% compared to $1.66B as of last quarter. Einhorn’s Q1 2021 letter reported that the fund returned negative 0.6% for Q1 2021. This is compared to 6.2% 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’s short book continued to lose money in Q1. They blamed the combination of rampant market manipulation and lax SEC enforcement for the poor performance. Also, they replaced single-stock short bets with index option shorts.New Stakes:FinServ Acquisition (FSRV), Supernova Partners Acquisition (SPNV), GoPro Inc. (GPRO), Extraction Oil & Gas (XOG), Capri Holdings (CPRI), and Gain Therapeutics (GANX): These are small (less than ~1.5% of the portfolio each) new stakes established this quarter. FinServ Acquisition and Supernova Partners Acquisition are SPACs with announced deals. FinServ is merging with Katapult Holding in a $1B EV deal announced in December. Supernova is merging with OfferPad in a ~$2.4B EV deal announced in March.Stake Disposals:Vaneck Gold Miners ETF (GDX): GDX was a 2.10% of the portfolio position purchased in Q2 2020 at prices between $23 and $37. There was a ~50% selling in Q3 2020 at prices between ~$36 and ~$44.50. The disposal this quarter was at prices between ~$30.90 and ~$38.50. The stock currently trades at $38.65NCR Corporation (NCR): NCR was a 2.32% of the portfolio position established in Q3 2020 at an average-cost of ~$18.90. There was a ~25% selling last quarter at prices between $19.60 and $37.60. The elimination this quarter was at prices between ~$33 and ~$39. The stock is now at $47.61.Crown Holdings (CCK), Clover Health (CLOV) previously Social Capital 3, Dillard’s Inc. (DDS), and Tesla (TSLA) Puts: These are very small (less than ~1.5% of the portfolio each) stakes were disposed this quarter.Stake Increases:Danimer Scientific (DNMR): The 5.66% 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 this quarter at prices between ~$22 and ~$64. DNMR currently trades at $27.66.Note: The stock dropped sharply in early May following a short  by Spruce Point Capital.Concentrix (CNXC): CNXC is a spinoff from SYNNEX Corporation that started trading in December. Terms called from 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 ~$148. This quarter saw a ~40% stake increase at prices between ~$100 and ~$150.Jack in the Box (JACK): JACK is a 1.37% position purchased in Q2 2020 at prices between $32 and $73. There was a ~40% selling last quarter at prices between ~$80 and ~$95 while this quarter saw a similar increase at prices between ~$91 and ~$117. The stock currently goes for ~$116ADT Inc. (ADT), APi Group (APG), and Echostar Corp (SATS): These three stakes saw substantial increases this quarter. The 1.64% ADT stake was built over the last two quarters at prices between ~$6.60 and ~$10.25. The stock currently trades at $11.12. APG is a 1.85% of the portfolio position that saw the stake doubled this quarter at prices between ~$17 and ~$21.50. The stock is now at $22.41. The 1.70% SATS position was built over the last two quarters at prices between ~$20 and ~$27 and it is now at $27.06.Stake Decreases:Green Brick Partners (GRBK): GRBK is currently the largest position at ~28% 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. This quarter 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 $24.30.Note: The Q1 2021 commentary said they are still bullish on the position. Despite being the largest stake by a wide margin, they are comfortable with the current sizing of the position as well.Atlas Air Worldwide (AAWW): AAWW is a large top five 6.37% of the portfolio stake established in Q2 2020 at an average price of $36.28 per share. The stock has doubled and currently trades at $74.39. Last quarter saw a ~15% stake increase at prices between $51.28 and $68.20 while this quarter saw similar trimming at prices between ~$51 and ~$62.Note: Greenlight controls ~5.5% of the business.Change Healthcare (CHNG): CHNG is large 5.31% of the portfolio position purchased in Q1 2020 at a cost-basis of $11.40. The stock currently trades at $23.66. There was a ~30% reduction this quarter at prices between ~$18.25 and ~$24.Note: UnitedHealth (UNH) is buying Change Healthcare in a $25.75 all-cash deal announced in January.Chemours (CC): CC is a 4.34% 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 stock is currently at $36.38. Last five quarters have seen a two-thirds reduction at prices between ~$7 and ~$28.75.Note: Greenlight had a very successful (4x returns) previous roundtrip with Chemours in the two-year period that ended in Q1 2018.Teck Resources (TECK), : TECK is a 3.10% of the portfolio position purchased in Q2 2020 at prices between $7 and $12.25 and the stock currently trades at $23.90. There was a ~40% stake increase last quarter at prices between ~$12.25 and ~$18.85 while this quarter there was a ~25% selling at prices between ~$18 and ~$23.75.Resideo Technologies (REZI): The 2.73% REZI stake was established in Q2 2020 at prices between $3.95 and $12.50. Last two quarters had seen a one-third increase at prices between ~$10 and ~$22.50 while this quarter saw a ~45% selling at prices between ~$21 and ~$31.50. The stock is now at $32.12.AerCap Holdings N.V. (AER): AER is currently a 2.72% 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% increase at prices between $25.50 and $42. The four quarters thru Q3 2018 saw the stake reduced by ~70% at prices between $49 and $57.50. Last three quarters have seen another ~80% selling at prices between ~$23 and ~$61. The stock currently trades at $58.11.Consol Energy (CEIX): CEIX is a 1.91% 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. CEIX currently trades at $16.44. There was a ~30% reduction this quarter at prices between ~$6.75 and ~$12.20.Note: Greenlight has a ~8% ownership stake in Consol Energy.CNX Resources (CNX): CNX is a 1.35% stake purchased in Q3 2014 and built up over the next several quarters. The three quarters thru Q4 2016 had seen a ~50% combined reduction at prices between $8 and $19. The pattern reversed in Q1 2017: ~50% increase at prices between $12 and $16.50. The four quarters thru Q4 2018 had seen a ~80% selling at prices between $11 and $18. Q1 2019 saw the pattern reverse again: two-thirds increase at prices between $9.75 and $13.50. Q1 2020 saw another ~25% stake increase at prices between $5 and $9 while next quarter there was a ~60% selling at prices between $5.50 and $12.95. This quarter saw another similar reduction at prices between ~$10.80 and ~$15.70. The stock currently trades at $14.37.Note: The prices quoted above are adjusted for the spinoff of Consol Energy (CEIX) in November 2017.SPDR Gold Trust (GLD): The 1.14% GLD stake was built in Q3 2020 at prices between $167 and $194. This quarter saw a ~70% selling at prices between ~$158 and ~$183. It currently trades at ~$178.FuboTV (FUBO): FUBO had an IPO last October. Shares started trading at ~$12 and currently goes for $30.46. Greenlight’s stake goes back to earlier funding rounds and their cost-basis is ~$5 per share. This quarter saw the stake reduced by roughly two-thirds to a very small 0.66% of the portfolio stake at prices between ~$21 and ~$52.40.Sonos Inc. (SONO) and SYNNEX Corporation (SNX): These small (less than ~1.25% of the portfolio each) stakes were reduced this quarter.Kept Steady:Brighthouse Financial (BHF): BHF is a large (top three) stake at 11.21% 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 $48.36. There was a ~70% selling in Q4 2018 at prices between $29 and $46.50.Note 1: Greenlight commented on this position on their Q2 2020 letter: The valuation is very cheap and there is a large buyback in place that should allow them to retire ~23% of the shares in the next eighteen months.Note 2: BHF is a spinoff of MetLife’s (MET) U.S. Retail business (annuities and life insurance) that started trading in July 2017.Twitter Inc. (TWTR): The 2.16% TWTR stake was purchased at prices between $31 and $45 and the stock is now at $59.63.Neubase Therapeutics (NBSE): NBSE is a small ~1% 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. The stock currently trades at $5.22. Greenlight controls ~8.7% of NBSE.Note: Greenlight also has several minutely small stakes primarily in SPAC units, shares, and warrants.The spreadsheet below highlights changes to Greenlight’s 13F stock holdings in Q1 2021:Source: John Vincent. Data constructed from Greenlight Capital’s 13F filings for Q4 2020 and Q1 2021.Info from Q4 2020 Letter – 1/21/2021  – Performance – 5.2% in 2020 vs 18.4% for S&P. 12.4% annualized since 1996 inception., Commentary – Best quarter in the firm’s history with a 25% return. REZI – HVAC & security business spunoff in 2018 from Honeywell. Q1 2020 average entry price of $4.88. Bullish on the new management team. Sees $3 per share earnings from $2 currently in the coming years. FUBO – private investment pre-IPO at $5 cost-basis. Still bullish at $28 as they see great potential in its technology that would enable transforming watching sports from being a passive experience to a highly engaging, active one. Danimer Scientific – DNMR – Pre-SPAC merger investment made a year ago. NBSE another private investment made at an average price of $3.96 – thinks risk-reward is asymmetrical at $6.99 price. Its PATrOL platform consolidates gene silencing, editing, and replacement in a unified platform. BUBBLE – commentary on valuation-indifferent investors (Passive ETFs, Reddit retail crowd, and professionals). JOE – earned some whistleblower money from SEC for validation of the short thesis made in 2007, complained to SEC, SEC agreed and fined JOE. AGO – similar slow progress on whistleblower short thesis presented in 2018 Sohn conference. Also S&P ratings are incorrect which they pointed out but S&P did not budge. So, they complained to SEC and they responded eventually saying they did not find a problem but they were looking at a different area.  Exposure - 134% long and 70% short , Largest Long Positions – AerCap, Atlas Air Worldwide, Brighthouse Financial, Change Healthcare, and Green Brick Partners.Regulatory filings thru 3/14/2021: 13G/As – 2/16 – AAW – 1.73M shares – 6.3% of business, XELA – zero, NBSE – 2.03M shares – 8.7% of business. Form 4, 13D/A – 2/10 – GRBK - ~700K shares disposed @ 20.55 – 17.43M shares – 34.4% of business, Form 4, 13D/A – 1/27 – ~7M shares disposed at 20.55 – 18.13M shares – 35.8% of business. 13G/A – 1/12 – error correction related filing, 13G/A – 1/12, Form 3 – 12/30, Form 4 – 1/11 – Consol Energy – CEIX – 4M shares – 11.8% of business."