In the final quarter of a year that would end with his Greenlight Capital hedge fund down more than 20%, David Einhorn (Trades, Portfolio) purchased 15 new stocks, he disclosed Tuesday.
Einhorn discussed his biggest new holding, Macy’s Inc. (M, Financial), in his quarterly letter. He also bought Avandgrid Inc. (AGR, Financial), Mylan NV (MYL, Financial), Allergan PLC (AGN, Financial) and DSW Inc. (DSW, Financial) has his next largest positions. Greenlight’s public equity portfolio had a value of $5.5 billion and 48 stocks listed in total at quarter-end.
Regarding his steep underperformance in 2015, Einhorn said his fund had returned to profitability after similar situations in the past.
“We know that in each prior period when the environment was challenging for our style, things eventually turned and we did well,” he wrote in his shareholder letter. “We don’t know when the winds will change, but we know that they will.”
By the end of January, his fund was up 1.2%. Einhorn has a 16.5% annualized return net of fees and expenses since Greenlight’s May 1996 inception.
New Buys
Einhorn purchased 6,739,600 shares of Macy’s Inc., a 4.3% portfolio weight. Its share price averaged $43 for the fourth quarter.
Macy's Inc. was incorporated in Delaware in 1985. The company and its predecessors have been operating department stores since 1830. Macy's Inc. has a market cap of $12.72 billion; its shares were traded at around $40.47 with a P/E ratio of 10.73 and P/S ratio of 0.49. The dividend yield of Macy's Inc. stocks is 3.43%. Macy's Inc. had an annual average earnings growth of 13.3% over the past five years.
Avandgrid Inc. (AGR, Financial)
Einhorn bought 5.25 million shares of Avandgrid Inc., a 3.7% portfolio weight. Its share price averaged $47 for the quarter.
Avangrid Inc., formerly UIL Holdings Corp., was incorporated in Connecticut. Avangrid Inc. has a market cap of $2.3 billion; its shares were traded at around $40.65 with a P/E ratio of 19.14 and P/S ratio of 1.40. The dividend yield of Avangrid Inc. stocks is 4.24%. Avangrid Inc. had an annual average earnings growth of 4.5% over the past 10 years.
Einhorn bought 2.89 million shares of Mylan NV, a 2.86% portfolio weight. The share price averaged $48.
Mylan NV was incorporated in Netherlands on July 7, 2014. Mylan NV has a market cap of $21.22 billion; its shares were traded at around $43.15 with a P/E ratio of 24.56 and P/S ratio of 2.25. Mylan NV had an annual average earnings growth of 12.4% over the past 10 years. GuruFocus rated Mylan NV the business predictability rank of 2.5-star.
Einhorn bought 410,000 shares of Allergan PLC, a 2.4% portfolio weight. The share price averaged $299.
Allergan PLC, formerly known as Actavis PLC. was incorporated in Ireland on May 16, 2013. Allergan PLC has a market cap of $112.11 billion; its shares were traded at around $284.45 with a P/E ratio of 37.41 and P/S ratio of 3.58. The dividend yield of Allergan PLC stocks is 0.09%. Allergan PLC had an annual average earnings growth of 3.8% over the past five years.
Einhorn bought 3.5 million shares of DSW Inc., a 1.5% portfolio weight. The share price averaged $24.
DSW Inc. was incorporated in the state of Ohio on Jan. 20, 1969. DSW Inc. has a market cap of $2.04 billion; its shares were traded at around $23.60 with a P/E ratio of 13.7 and P/S ratio of 0.82. The dividend yield of DSW Inc. stocks is 3.4%. DSW Inc. had an annual average earnings growth of 13.9% over the past 10 years.
For more of David Einhorn (Trades, Portfolio)’s stocks, visit his portfolio here.
