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Greenlight Capital Inc .: How Hedge Fund Manager David Einhorn invests Q1 / 2020 | message


• A new investment in fourth place in the portfolio: Change Healthcare Inc.
• Einhorn is investing eleven in Q1 2020 new shares and says goodbye to General Motors (GM)
• Even Einhorn was not spared from the crisis: his portfolio lost significant value

In the first quarter of 2020, stock prices plummeted due to the corona crisis – David Einhorn, chairman and co-founder of Greenlight Capital, nevertheless acted and expanded his portfolio.

Green Brick Partners is the number one investment

Einhorn’s portfolio changed significantly compared to the previous quarter (4/2019). The status at the end of March 2020 is as follows, according to the US Securities and Exchange Commission: Green Brick Partners has been in first place for three quarters with 24.118 million shares worth a total of $ 194.155 million. The share takes 27.89 percent of the portfolio. Brighthouse Financial Inc. holds a good 12 percent with 3,640 million shares, slightly more than at the end of 2019 (equivalent to $ 87.986 million). Einhorn also increased its stake in AerCap Holdings N.V. on 3,271 million papers, meanwhile this investment is in third place with a value of 74.548 million US dollars.

Fourth in the portfolio (7.60 percent) was a new investment at the end of March: Change Healtcare Inc. David Einhorn is the sole investor and has 5.294 million shares with a value of $ 52.877 million.

Berkshire Hathaway and Goldman Sachs

Einhorn had held shares in General Motors since 2011 – but said goodbye to this share in the last quarter. He also sold all of his shares in DXC Technology Co., Scientific Games, EchoStar Corp., Tempur Sealy Int., The Medicines Company and CONSOL Energy Inc .. He had managed these shares for several quarters, but had not bought any before 2017, So it was probably a medium-term investment.

In addition to Change Healtcare, ten additional shares were added to the portfolio. These include shares in American Express, Walt Disney and Goldman Sachs. Furthermore, Einhorn is now one of 20 investors in Buffett’s Berkshire Hathaway.

The billionaire becomes a millionaire: the portfolio lost a lot of its value

David Einhorn has also long been regarded as one of the most successful hedge fund managers. When he makes a comment on a stock, it is so influential that one even speaks of the “unicorn effect”. He follows the so-called “long-short equity strategy” in his investments: He holds stocks whose prices are forecast to be bullish for a long time, and holds those whose prices are likely to fall only briefly. But although he claims to abide by Buffett’s investor rules (1. “never lose money” and 2. “never forget the first rule”), he was not spared the Corona crisis.

His portfolio lost massive value – at the end of 2019 it was around $ 1.35 billion, at the end of March 2020 it was only around $ 696 million.

Olga Rogler / editors

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Image sources: Paul Bereswill / Getty Images

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