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Einhorn’s New Stakes and Exits in Q1

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Teekay LNG Partners

David Einhorn’s Greenlight Capital (GLRE) initiated a new stake in Teekay LNG Partners (TGP) during the first quarter of 2019. The stake formed just 0.53% of the portfolio value at the quarter’s end. The company is one of the world’s largest marine energy transportation, storage, and production companies.

The company released its Q1 2019 results on May 23, missing analysts’ earnings estimates. However, it reported a distributable cash flow of $0.69, its highest in the last few years, and the company added new charters that will keep its three vessels engaged for another five years.

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Stake disposals

GLRE disposed of its entire stake in Chemours (CC), Dillard’s (DDS), and Shutterfly (SFLY) during the first quarter. Einhorn first took on a stake in Chemours in Q4 2015. Chemours is a chemical company spun off from DuPont. GLRE started building a stake in the company as it believed titanium dioxide prices were at or near the bottom. A widespread public short recommendation from Citron Research on Chemours allowed Einhorn to accumulate the stock at low prices.

In Q2 2017, GLRE first took on a stake in Dillard’s, an American department store chain whose margins have been pressured since 2015. Weak traffic and the rise of e-commerce giants have been weighing negatively on the stock.

Shutterfly

Shutterfly (SFLY), an Internet-based company, specializes in image-publishing services. In February, Shutterfly announced the formation of a committee to review strategic alternatives. Shutterfly’s stock has risen recently on reports that the company is getting close to a definitive deal.

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