Last year, hedge fund manager David Einhorn famously predicted a crash in the markets and made a cool $2.2 billion shorting the S&P 500. Now that stocks have bounced back, he's been looking for new ways to beat the market. Since founding his hedge fund Greenlight Capital in 1996, he has achieved outstanding returns for his investors over many years, significantly outperforming the market.
| | | | | | | |  Dear Reader,
Last year, hedge fund manager David Einhorn famously predicted a crash in the markets and made a cool $2.2 billion shorting the S&P 500. Now that stocks have bounced back, he's been looking for new ways to beat the market.
Since founding his hedge fund Greenlight Capital in 1996, he has achieved outstanding returns for his investors over many years, significantly outperforming the market.
Recently, however, things have not been going quite so smoothly. It has had a dry spell since 2012, lagging the broad S&P 500 index.
Today, I'd like to share with you the current top five stock positions held by David Einhorn:
Green Brick Partners (GRBK)
The largest position is Green Brick Partners stock, with a portfolio weighting of 27.5%. Einhorn holds just over $400 million worth of Green Brick Partners stock. In the past quarter, the hedge fund manager reduced the position by about 28%.
The U.S. group develops land and real estate in Texas, Georgia, Colorado, and Florida.
Brighthouse Financial (BHF)
The second-largest holding is the stock of US-based Brighthouse Financial. The equity position currently accounts for 11.2% of the portfolio. In total, Einhorn has invested about $160 million in the group.
As a result, the investor holds 4.24% of all outstanding shares of Brighthouse Financial. Brighthouse Financial was spun off entirely from Metlife in 2017 and is one of the largest providers of life insurance in the U.S.
Atlas Air Worldwide Holdings (AAWW)
The third-largest position is Atlas Air Worldwide Holdings stock, with a portfolio weight of 6.37%. Einhorn holds just over $91 million worth of Aercap stock. Compared to the previous quarter, the fund manager has reduced his investment by 12%.
The company provides outsourced solutions for cargo and passenger aircraft operations, including contractual service arrangements such as aircraft provisioning, as well as value-added services such as crewing, maintenance, and insurance for aircraft and other customers.
Danimer Scientific (DNMR)
The fourth-largest position in Einhorn's portfolio is Danimer Scientific stock. After acquisitions (up 24% last quarter), the $81 million position accounts for about 5.6% of its total portfolio.
Danimer Scientific is a high-performance polymers company that develops, produces, and offers bioplastics to replace traditional petrochemical-based plastics.
Among other products, it makes polyhydroxyalkanoate, a biodegradable plastic alternative used in a range of plastic applications such as water bottles, straws, food containers, and other items under the brand name Nodax
Change Healthcare (CHNG)
The fifth-largest position is shares of Change Healthcare, in which Einhorn has invested $76 million. The stock accounts for a weighting of about 5.3% of Einhorn's total portfolio.
Last quarter, Einhorn significantly reduced the position (-28%).
Change Healthcare is an independent healthcare technology platform that provides data- and analytics-driven solutions to improve clinical, financial, administrative, and patient engagement outcomes in the United States healthcare system.
It operates in three segments: Software and Analytics, Network Solutions, and Technology-enabled Services.
We'll continue to monitor what hedge funds are doing with investor capital. This is a very interesting time for the markets, and sometimes you need to follow the Smart Money for clues on where certain stocks are heading.
Best regards,
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| | | Dr. Gregor Bauer
Chief Analyst, European Markets |
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