David Einhorn (Trades, Portfolio), leader of Greenlight Capital Re Ltd. (GLRE, Financial), disclosed in a 13-F filing this week that his firm’s top five trades during the fourth quarter of 2021 included a new position in Global Payments Inc. (GPN, Financial), the closure of its position in AerCap Holdings NV (AER, Financial) and reductions to its holdings in Atlas Air Worldwide Holdings Inc. (AAWW, Financial), Concentrix Corp. (CNXC, Financial) and Teck Resources Ltd. (TECK, Financial).
Einhorn’s New York-based firm seeks long-term capital appreciation by focusing on companies with attractive intrinsic value ratios. The firm is a noted activist investor: Greenlight takes positions in companies and pushes for management changes.
As of December 2021, Greenlight’s $1.75 billion equity portfolio contains 57 stocks, with 11 new positions and a quarterly turnover ratio of 12%. The top three sectors in terms of weight are consumer cyclical, financial services and industrials, with weights of 46.88%, 11.75% and 10.26%, respectively.
Global Payments
Greenlight purchased 506,000 shares of Global Payments (GPN, Financial), giving the position a 3.91% equity portfolio weight. Shares averaged $137.30 during the fourth quarter; the stock is significantly undervalued based on Tuesday’s price-to-GF-Value ratio of 0.70.
GuruFocus ranks the Atlanta-based payment processing company’s profitability 8 out of 10 on several positive investing signs, which include a four-star business predictability rank and profit margins outperforming more than 80% of global competitors.
Other gurus with holdings in Global Payments include Larry Robbins (Trades, Portfolio)’ Glenview Asset Management, Philippe Laffont (Trades, Portfolio)’s Coatue Asset Management and Jeremy Grantham (Trades, Portfolio)’s GMO.
AerCap
Greenlight sold all 528,858 of its shares of AerCap (AER, Financial), trimming 2.05% of its equity portfolio.
Shares of AerCap averaged $61.95 during the fourth quarter; the stock is fairly valued based on Tuesday’s price-to-GF-Value ratio of 1.01.
GuruFocus ranks the Irish aircraft leasing company’s profitability 7 out of 10 on the back of profit margins outperforming more than 90% of global competitors despite returns underperforming than half of global business service companies.
Atlas Air Worldwide Holdings
The firm sold 699,855 shares of Atlas Air Worldwide Holdings (AAWW, Financial), trimming 46.20% of the position and 3.83% of its equity portfolio.
Shares of Atlas Air averaged $86.40 during the fourth quarter; the stock is modestly overvalued based on Tuesday’s price-to-GF-Value ratio of 1.19.
GuruFocus ranks the Purchase, New York-based aviation operating service company’s profitability 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and profit margins and returns outperforming more than 77% of global competitors.
Concentrix
The firm sold 211,573 shares of Concentrix (CNXC, Financial), slicing 79.54% of the position and 2.51% of its equity portfolio. Shares averaged $178.35 during the fourth quarter.
GuruFocus ranks the Fremont, California-based customer engagement software company’s financial strength 6 out of 10 on the heels of a strong Altman Z-score of 4.38 and a high Piotroski F-score of 8 despite interest coverage and debt ratios underperforming more than 56% of global competitors.
Teck Resources
The firm sold 1,131,966 shares of Teck Resources (TECK, Financial), reducing the position by 25% and its equity portfolio by 1.89%.
Shares of Teck averaged $27.48 during the fourth quarter; the stock is significantly overvalued based on Tuesday’s price-to-GF-Value ratio of 1.34.
GuruFocus ranks the Vancouver-based metals and mining company’s profitability 6 out of 10 on the back of profit margins and returns outperforming more than 70% of global competitors despite three-year revenue decline rates underperforming over 60% of global metals and mining companies.
