David Einhorn (Trades, Portfolio) of Greenlight Management and Daniel Loeb (Trades, Portfolio) of Third Point both announced Monday that they increased their respective positions in Einhorn’s company Green Brick Partners Inc. (GRBK, Financial).
Einhorn grew his holding by 54.25% to 24,127,590 shares. He had started a small position in the company in the first quarter of 2010, but expanded it to almost half of the company in the fourth quarter of 2014, when he also became chairman.
Daniel Loeb (Trades, Portfolio) grew his holding by 56.1% to 8,182,965 shares, giving him 26.09% ownership of the company. Like Einhorn, he also started the position small in the first quarter of 2010 and increased it significantly in the fourth quarter of 2014.
Both investors purchased the shares as part of Green Brick Partners’ public offering of 17 million common shares, which closed on July 1. Shares were priced at $10 each.
Green Brick expected to raised $165.6 million in proceeds form the offering. It planned to use the funds to repay debt, for working capital and for general corporate purposes.
Both investors’ recent purchases included a lock-up agreement stipulating that they would not sell or dispose of shares for a 90-day period.
When Einhorn became involved with the company in October, he switched it from a shell company operating ethanol plants, called BioFuels Energy, to a home builder.
Green Brick reported its results for the first three months of the year on May 13. Total revenues were $58.5 million, compared to $63 million for the same period last year. Net income was $16.4 million, or $0.13 per diluted share, versus $15.9 million or $0.66 per diluted share, last year.
The company delivered 145 new homes in the first quarter, a 5.1% increase from 138 delivered in the same period last year. It also said it had twice as many housing starts as first quarter last year and expected to grow net income each quarter.
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