Einhorn’s Greenlight Buys NVR, Intrexon, Sells Oaktree, Rite Aid

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.

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.


About the Author

Michael Ide
Michael has a Bachelor's Degree in mathematics and physics from Boston University and Master's Degree in physics from University of California, San Diego. He has worked as an editor and writer for several magazines. Prior to his career in journalism, Michael Worked in the Peace Corps teaching math and science in South Africa.