David Einhorn’s Greenlight Capital, a long-short hedge fund that focuses on finding good value, sold its position on Oaktree Capital Group LLC (NYSE:OAK), opened a position on real estate company NVR, Inc. (NYSE:NVR) and took some profits out of rising Rite Aid Corporation (NYSE:RAD) stocks. The fund was founded in 1996 with $900,000 in assets under management and now has a total portfolio value of $5.4 billion and holds positions on 29 separate stocks as of its most recent SEC filing. Einhorn is probably most famous for shorting Lehman Brothers in 2007, making a huge profit once its actual financial situation became known.
Greenlight Capital’s new positions
Einhorn has discussed NVR, Inc. (NYSE:NVR) in past newsletters, so it’s no surprise that he bought 22,500 shares worth about $20.6 million. He also opened positions on Intrexon Corp (NYSE:XON), buying 2 million shares worth about $48 million, and 1.1 million shares of Tempur Sealy International Inc (NYSE:TPX), worth $50 million. Additionally, Greenlight increased its position in WPX Energy Inc (NYSE:WPX) by 77% to 2 million shares and Spirit AeroSystems Holdings, Inc. (NYSE:SPR) by 41% to 782,000 shares.
Greenlight Capital’s closed positions
Greenlight closed positions on Oaktree Capital Group LLC (NYSE:OAK) (1.4 million shares), State Bank Financial Corp (NASDAQ:STBZ) (1.8 million shares), and Capital Bank Financial Corp (NASDAQ:CBF) (940,000 shares). It also sold 20% of its shares in Rite Aid Corporation (NYSE:RAD), bringing its position down to 4 million shares, but the total value of its position actually increased by about $18 million, so the sale can be seen as a combination of profit-taking. It also reduced shares of Aspen Insurance Holdings Limited (NYSE:AHL) by 34% to 1.5 million shares, Legg Mason Inc (NYSE:LM) by 30% to 710,000 shares, NCR Corporation (NYSE:NCR) by 21% to 1.9 million shares, Aetna Inc (NYSE:AET) by 17.5% to 1.2 million shares, Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL) by 14% to 1.5 million shares, Computer Sciences Corporation (NYSE:CSC) by 13.4% to 550,000 shares, and CIGNA Corporation (NYSE:CI) by 6.63% to 330,000 shares.
Paul J. Isaac's Arbiter Partners returned -19.3% in the third quarter of 2021, according to a copy of the hedge fund's quarterly investor correspondence, which ValueWalk has been able to review. Following this performance, the fund's return sits at -1.6% for the year to the end of September. In comparison, the S&P 500 returned 15.9%, Read More
Greenlight Capital’s biggest positions
Greenlight’s biggest positions are Apple Inc, (NASDAQ:AAPL), which is 21.12% of the portfolio, General Motors Company (NYSE:GM) which makes up 11.33%, Marvell Technology Group Ltd. (NASDAQ:MRVL) at 9.41%, CIGNA Corporation (NYSE:CI) with 6.6%, and Aetna Inc (NYSE:AET) with 6.56%. With such a heavy investment in Apple Inc, (NASDAQ:AAPL), 32% of Greenlight’s funds are investing in the tech sector, followed by 14% in health care, and 13.5% in consumer discretionary.