David Einhorn's Greenlight Capital Is 98% Long, 63% Short

by: Market Folly

Dealbreaker has posted up the latest investor letter from David Einhorn's Greenlight Capital and in it we see that Greenlight is 98% long, 63% short and its largest disclosed long positions in alphabetical order are:

  1. Arkema (AKE on foreign exchange, OTCPK:ARKAY on the pink sheets)

  2. CIT Group (NYSE:CIT)

  3. Ensco (NYSE:ESV)

  4. Gold (physical)

  5. Pfizer (NYSE:PFE)

  6. Vodafone (NASDAQ:VOD)

Overall, Einhorn's top positions are largely unchanged and we've detailed the respective thesis on each investment in the past. In particular, we highlighted the case for Ensco in our newsletter Hedge Fund Wisdom. Additionally, we've outlined Einhorn's Vodafone thesis as well.

Possibly the most notable change in Greenlight's portfolio in the third quarter was the sale of its Ford debt position as it had been a top holding in the past. The hedge fund also sold longs in ATP Oil & Gas (ATPG), EMC (EMC), Lockheed Martin (NYSE:LMT), and Nestle.

On the short side of the portfolio, we see that Greenlight had been short Corinthian Colleges (NASDAQ:COCO) in the for-profit education space. Many hedge funds have been short this sector and Einhorn admits it covered this position too early (but still saw a 91% return). The hedge fund also covered shorts in Office Depot (NYSE:ODP) and Royal Caribbean (NYSE:RCL). Einhorn also recently detailed the short thesis on St. Joe (NYSE:JOE) at the Value Investing Congress, a position he defends with his latest commentary.

Embedded below is David Einhorn & Greenlight Capital's third quarter investor letter:

You can download a .pdf copy here.

Last, but certainly not least, Einhorn makes a point to focus on the shift in the Federal Reserve's policy and that they've been expecting the Fed would be forced to monetize the debt. He highlights this as one of the main reasons he owns physical gold.

Original article