Greenlight Capital leader David Einhorn (Trades, Portfolio) disclosed he acquired seven new holdings in the 3rd quarter.
Einhorn, a well-known activist investor, seeks long-term capital appreciation by investing in companies that have the potential to achieve consistent returns and safeguard capital. His portfolio of 38 stocks is largely composed of securities in the consumer cyclical sector.
The guru’s top four new purchases were Exela Technologies Inc. (XELA, Financial), Venator Materials PLC (VNTR, Financial), Tech Data Corp. (TECD, Financial) and Children’s Place Inc. (PLCE, Financial).
Exela Technologies
Einhorn established a 3.4 million-share stake in Exela for an average price of $6.53 per share, giving it 0.7% portfolio space.
The Texas-based information technology services management company has a market cap of $811.61 million; its shares were trading around $5.40 on Wednesday with a price-book (P/B) ratio of 17.97 and a price-sales (P/S) ratio of 2.22.
The Peter Lynch chart below shows the stock is trading above its fair value.
GuruFocus ranked Exela’s financial strength 7 of 10 and its profitability and growth 2 of 10. The company does not pay a dividend.
With his purchase, Einhorn became the company’s largest guru shareholder with 5.57% of outstanding shares. Daniel Loeb (Trades, Portfolio) also owns the stock.
Venator Materials
The guru purchased 1.7 million shares of Venator Materials for an average price of $20.74 per share, expanding the portfolio 0.66%.
The U.K.-based chemical company, which went public in August after spinning off of Huntsman Corp. (HUN, Financial), has a market cap of $2.4 billion; its shares were trading around $22.60 on Wednesday with a forward price-earnings (P/E) ratio of 8.45, a P/B ratio of 2.39 and a P/S ratio of 1.
The trend in the stock price since the company’s initial public offering is illustrated in the chart below.
GuruFocus ranked Venator’s financial strength 5 of 10 and its profitability and growth 2 of 10. The company does not pay a dividend.
With 1.6% of outstanding shares, Einhorn has the largest position in the company among the gurus. Steven Cohen (Trades, Portfolio), Arnold Schneider (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio) are also shareholders.
Tech Data
The investor bought 90,000 shares of Tech Data for an average price of $98.9 per share. The trade had an impact of 0.14% on the portfolio.
The Florida-based distributor of technology products has a market cap of $3.38 billion; its shares were trading around $88.66 on Wednesday with a P/E ratio of 16.70, a P/B ratio of 1.25 and a P/S ratio of 0.11.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Tech Data’s financial strength 6 of 10 and its profitability and growth 6 of 10. The company does not pay a dividend.
Of the gurus invested in the company, Einhorn has the largest position. Jeremy Grantham (Trades, Portfolio), Jim Simons (Trades, Portfolio), Barrow, Hanley, Mewhinney & Strauss and David Dreman (Trades, Portfolio) also own the stock.
Children’s Place
Einhorn invested in 66,400 shares of Children’s Place for $107.33 per share, giving it a portfolio weight of 0.13%.
The New Jersey-based retailer of children’s apparel has a market cap of $2.11 billion; its shares were trading around $119.88 on Wednesday with a P/E ratio of 17.21, a P/B ratio of 4.25 and a P/S ratio of 1.22.
Based on the Peter Lynch chart below, the stock appears to be trading slightly above its fair value.
GuruFocus ranked the retailer’s financial strength 8 of 10 and its profitability and growth 8 of 10. The company’s trailing dividend yield is 1.23% and its forward dividend yield is 1.40%. The dividend payout ratio is 17%.
Among the eight gurus invested in Children’s Place, Chuck Royce (Trades, Portfolio) has the largest holding with 6.53% of outstanding shares. Bacon, Pioneer Investments (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), Grantham, Simons and John Hussman (Trades, Portfolio) are also shareholders.
Einhorn also established positions in Dollar Tree Inc. (DLTR, Financial), Gap Inc. (GPS, Financial) and The Kroger Co. (KR, Financial) during the quarter.
Disclosure: I do not own any stocks mentioned.
