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Could Einhorn’s Top Positions Turn His Fund’s Performance Around?

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David Einhorn’s top holdings

At the end of the first quarter, David Einhorn’s Greenlight Capital’s (GLRE) three largest positions were as follows:

  • General Motors (GM), which comprised 24.03% of the portfolio.
  • Green Brick Partners (GRBK), which comprised 14.99%.
  • AerCap Holdings (AER), which comprised 13.76%.

In the first quarter, the fund reduced its bet on General Motors by 23.7%, increased its stake in AER by 8.2%, and maintained its position in GRBK. GLRE first established a position in GM in the first quarter of 2015. Since then, the fund has increased its stake several times.

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General Motors

At the 2016 Sohn Investment Conference, Einhorn advised investors to take a long position in General Motors. He believed the company could provide strong returns in the near future. While GM is Greenlight’s biggest holding, it doesn’t contribute the most. Year-to-date, GMs stock has returned 5%, while the Dow Jones Industrial Average (DIA) has returned 9.2%. GM’s first-quarter earnings beat analysts’ expectation but missed their revenue estimate.

Einhorn’s top pick

At the 2019 Sohn Conference, Einhorn presented his two top picks, a long position on AerCap (AER) and a short position on GATX (GATX). AerCap, the world’s largest independent aircraft leasing company, is among the top drivers of GLRE’s gains this year. As of May 23, AerCap’s stock has returned 19%, outperforming the S&P 500 (SPY), which has returned 12.9%. Einhorn expects AerCap to continue to repurchase stock to grow earnings.

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