David Einhorn (Trades, Portfolio), a value investor and founder of hedge fund Greenlight Capital, disclosed ownership of four new positions added in the third quarter: CNX Coal Resources LP (CNXC, Financial), Garmin Ltd. (GRMN, Financial), TerraForm Global Inc. (GLBL, Financial) and Vivint Solar Inc. (VSLR, Financial).
Einhorn’s firm declined 17.4%, versus 5.3% for the S&P 500 Index, in the first three quarters of the year, led by poor performance of its holdings SunEdison (SUNE, Financial) and Consol Energy (CNX, Financial). Einhorn runs a concentrated portfolio, dedicating the most capital to its highest-conviction holdings. He discussed his process in his third-quarter letter:
“First, we are value investors. This means that we buy what we believe are misunderstood companies at low valuations relative to their underlying assets and future cash flows. This involves spending many hours analyzing a company’s reported financial statements, then making adjustments to them based on our perception of the economics of the business,” he said.
Greenlight Capital’s long portfolio ended the quarter with 42 stocks in total, valued at $6.03 billion. The predominant sector represented was technology, at 36.5% of the portfolio, and consumer cyclical, at 23.6%.
New Buys
Vivint Solar Inc. (VSLR, Financial)
Einhorn bought 30,000 shares of Vivint Solar Inc., a 0.01% portfolio weight. Vivint Solar had a third quarter average share price of $13.
Vivint Solar Inc. was incorporated as a Delaware corporation on Aug. 12, 2011, and changed its name from V Solar Holdings Inc. Vivint Solar Inc. has a market cap of $1.02 billion; its shares were traded at around $9.57 with and P/S ratio of 22.78.
TerraForm Global Inc. (GLBL, Financial)
Einhorn bought 1.9 million shares of TerraForm Global Inc., a 0.21% portfolio weight. TerraFor Global had an average share price of $10.
TerraForm Global Inc. is a Delaware corporation formed on Sept. 12, 2014. Terraform Global Inc. has a market cap of $1.07 billion; its shares were traded at around $6.80 with and P/S ratio of 12.32.
Einhorn bought 625,000 shares of Garmin Ltd., a 0.37% portfolio weight. Its shares cost $40 on average.
Garmin Ltd. was incorporated in Switzerland on Feb. 9, 2010. Garmin Ltd has a market cap of $6.84 billion; its shares were traded at around $35.94 with a P/E ratio of 12.9 and P/S ratio of 2.43. The dividend yield of Garmin Ltd. stocks is 5.5%. Garmin Ltd. had an annual average earnings growth of 6.9% over the past 10 years.
CNX Coal Resources LP (CNXC, Financial)
Einhorn disclosed a position of 5,488,438 shares of CNX Coal Resources LP, a 1.02% portfolio weight and 23.64% of shares outstanding. CNX Coal had an average share price of $14.
CNX Coal Resources LP was formed by CONSOL Energy Inc. CNX Coal Resources LP has a market cap of $278.66 million; its shares were traded at around $12.00 with a P/E ratio of 2.16 and P/S ratio of 0.97. The dividend yield of CNX Coal Resources LP stocks is 4.0%.
For more David Einhorn (Trades, Portfolio) holdings, visit his long portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days.
