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A Look at David Einhorn’s Largest Sector Holdings in 4Q17

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Greenlight Capital’s largest sector in 4Q17

In the previous article, we noted that David Einhorn, president of Greenlight Capital, is betting against Assured Guaranty (AGO). We also discussed his firm’s largest stock holdings in 4Q17 and how its portfolio showed weaker returns in fiscal 2017 and 1Q18.

In this part, we’ll analyze Greenlight Capital’s largest sector holdings in 4Q17. The firm’s top five holdings in 4Q17 were consumer discretionary (XLY), finance (XLF), healthcare (XLV), information technology (XLK), and industrials (XLI). These sectors represented ~28.6%, ~19.7%, ~13.0%, ~11.4%, and ~9.4%, respectively, of the firm’s portfolio in 4Q17.

Greenlight Capital’s stronger position in the consumer discretionary sector signals that the firm is marginally optimistic about improvement in the country’s economic activity. On April 26, the Consumer Discretionary Select Sector SPDR ETF (XLY) rose 5.4% on a year-to-date basis.

However, the Financial Select Sector SPDR ETF (XLF) fell 0.5% year-to-date on April 26. The S&P 500 Index (SPY) fell 1.6% during the same period.

For another perspective from the conference, please read Jeffrey Gundlach at the 2018 Sohn Conference: Long Energy Stocks.

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