Greenlight Capital leader David Einhorn (Trades, Portfolio) disclosed his fourth-quarter portfolio earlier this week.
The activist investor's New York-based firm, which seeks to generate long-term capital appreciation by taking an approach rooted in emphasizing intrinsic value, invests in companies that have the potential to achieve consistent returns and safeguard capital regardless of market conditions. Einhorn is also known for his short positions, which include Tesla Inc. (TSLA, Financial) and Netflix Inc. (NFLX, Financial).
During the quarter, Einhorn established 10 new holdings, sold out of 10 positions and added to or reduced a number of other existing investments. Among his most notable trades for the quarter were new positions in Danimer Scientific Inc. (DNMR, Financial), FuboTV Inc. (FUBO, Financial), Concentrix Corp. (CNXC, Financial) and CONSOL Energy Inc. (CEIX, Financial), which was established following its merger with CONSOL Coal Resources LP (CCR, Financial).
Danimer Scientific
Einhorn invested in 1.73 million shares of Danimer Scientific (DNMR, Financial), allocating 2.44% of the equity portfolio to the stake. The stock traded for an average price of $23.66 per share during the quarter.
The Bainbridge, Georgia-based company formerly known as Meredian Holdings Group Inc., which manufactures biopolymer, has a $4.05 billion market cap; its shares were trading around $47.60 on Wednesday with a price-sales ratio of 62.55.
Shares of Danimer, which went public via special purpose acquisition company on Dec. 30, have gained over 90% so far.
GuruFocus rated Danimer's financial strength 4 out of 10.
Einhorn is the company's largest guru shareholder with a 2.03% stake. Louis Moore Bacon (Trades, Portfolio) also owns the stock.
FuboTV
The guru picked up 1.2 million shares of FuboTV (FUBO, Financial), dedicating 2.05% of the equity portfolio to the position. Shares traded for an average price of $22.18 each during the quarter.
The sports-focused TV streaming service, which is headquartered in New York, has a market cap of $4.82 billion; its shares were trading around $45.25 on Wednesday with a price-sales ratio of 15.64.
The median price-sales chart shows the stock is trading above historical values, suggesting it is overpriced.
FuboTV's financial strength was rated 6 out of 10 by GuruFocus. As a result of issuing approximately $10.08 million in new long-term debt over the past three years, the company has weak interest coverage. The Altman Z-Score of 7, however, indicates it is in good standing even though the company has recorded losses in operating income over the last three years.
Weighed down by negative margins and returns that underperform a majority of competitors, the company's profitability scored a 1 out of 10 rating. It also has a low Piotroski F-Score of 3, suggesting poor operating conditions, and declining revenue per share.
With a 1.12% stake, Einhorn is FuboTV's largest guru shareholder. Bacon, Paul Tudor Jones (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) also own the stock.
Concentrix
The investor entered a 334,882-share holding of Concentrix (CNXC, Financial), giving it 1.99% space in the equity portfolio. During the quarter, shares traded for an average per-share price of $97.66.
The Fremont, California-based business services company, which specializes in customer engagement and business performance, has a $5.79 billion market cap; its shares were trading around $111.37 on Wednesday with a price-earnings ratio of 39.78, a price-book ratio of 2.49 and a price-sales ratio of 2.29.
Since it was spun off from Synnex Corp. (SNX) on Dec. 1, the share price has risen 42%.
GuruFocus rated Concentrix's financial strength 5 out of 10 on the back of adequate interest coverage. The Altman Z-Score of 1.95, however, warns the company is under some financial pressure since the weighted average cost of capital eclipses the return on invested capital, indicating issues with creating value.
The company's profitability fared worse, scoring a 2 out of 10 rating despite having margins and returns that outperform over half of its industry peers.
Of the gurus invested in Concentrix, Sarah Ketterer (Trades, Portfolio) has the largest stake with 1.5% of outstanding shares. Royce, Tweedy Browne (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), the FPA Capital Fund (Trades, Portfolio) and Jones also own the stock.
CONSOL Energy
Following its merger with CONSOL Coal Resources on Dec. 30, Einhorn gained a 4 million-share stake in CONSOL Energy (CEIX, Financial), impacting the equity portfolio by 1.74%. The stock traded for an average price of $5.25 per share during the quarter. He previously sold out of the stock in the first quarter.
Before the merger, Einhorn held 5.4 million shares of CONSOL Coal.
The energy company, which is headquartered in Canonsburg, Pennsylvania, has a market cap of $387.28 million; its shares were trading around $11.36 on Wednesday with a price-book ratio of 0.55 and a price-sales ratio of 0.34.
The Peter Lynch chart shows the stock is overvalued.
CONSOL Energy's financial strength was rated 3 out of 10 by GuruFocus. In addition to a low cash-debt ratio, the Altman Z-Score of 0.5 warns the company could be in danger of bankruptcy if it does not improve its liquidity.
The company's profitability scored a 5 out of 10 rating, weighed down by negative margins. Its returns, however, outperform over half of its competitors. CONSOL also has a low Piotrosk F-Score of 3, suggesting business conditions are in poor shape, and revenue per share has been in decline for the past five years.
Einhorn has an 11.77% stake in the company, making him its largest shareholder among the gurus. Royce also owns the stock.
Additional trades and portfolio composition
During the quarter, Einhorn also sold out of Intel Corp. (INTC, Financial) and Ingredion Inc. (INGR, Financial) as well as reduced his position in AerCap Holdings NV (AER, Financial). Other new positions he established were ADT Inc. (ADT), Social Capital Hedosophia Holdings Corp III (IPOC), EchoStar Corp. (SATS), Sonos Inc. (SONO), Aequi Acquisition Corp (ARBGU) and New Providence Acquisition Corp. (NPA).
The guru's $1.66 billion equity portfolio, which was composed of 36 stocks, is most heavily invested in the consumer cyclical sector with a weight of 36.12%.
In 2020, Greenlight significantly underperformed the S&P 500 with a return of 5.2%. The index posted an 18.4% return.
Disclosure: No positions.
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