David Einhorn (Trades, Portfolio) disclosed Thursday that he started a new position in Teekay LNG Partners LP (TGP, Financial) and boosted positions in energy companies during the first quarter.
Einhorn, the founder of hedge fund Greenlight Capital, runs a concentrated portfolio that listed only 18 positions at the end of the first quarter, valued around $1.41 billion in aggregate. His largest sector weightings were consumer cyclical at 31% of holdings, real estate at 14.99% and industrials at 14.29%. His largest position, General Motors Co. (GM, Financial), dominates the equity portfolio at 24.03% after he reduced it by 23.66% in the first three months of 2019.
The value investor’s returns have suffered in recent years due to losses on long positions and his short of torrid tech stocks. Greenlight Capital sank 34% in 2018, its worst year ever, before seeing a brighter start to 2019. The firm gained 11% in the first quarter, “almost reversing” its loss the previous quarter, Einhorn said in a shareholder letter. The S&P 500 rose 13.6% in the first quarter.
“Nonetheless, it continued to be a challenging environment for our investment style with growth stocks performing much better than value stocks,” he wrote in the letter. “In the context of this headwind and a sizable short portfolio, we are pleased with the quarterly result.”
First-quarter returns were boosted by gains in his leading positions, General Motors and Green Brick Partners (GRBK, Financial), and seven others, including his Tesla (TSLA, Financial) short.
“Overall, our longs performed a little better than the market, our shorts lost money but went up much less than the market, and macro made a small profit,” he said.
In addition to buying Teekay LNG Partners in the first quarter, Einhorn increased his positions in Consol Energy Inc. (CEIX, Financial), CNX Resources Corp. (CNX, Financial) and AerCap Holdings NV (AER, Financial). He also closed positions in Dillard’s Inc. (DDS, Financial) and Shutterfly Inc. (SFLY, Financial).
New buy: Teekay LNG Partners LP (TGP, Financial)
Einhorn purchased 500,000 shares of Teekay LNG Partners, giving it 0.53% portfolio weight. The stock’s first-quarter share price averaged $14.
Teekay LNG Partners LP has a market cap of $1.17 billion; its shares were traded around $14.70 with a price-earnings ratio of 490.01 and price-sales ratio of 2.34. The trailing 12-month dividend yield of Teekay LNG Partners LP is 4.14%. The forward dividend yield of Teekay LNG Partners LP is 5.27%.
Increases
Consol Energy Inc. (CEIX, Financial)
Einhorn increased his Consol Energy position by 142.86%, buying 200,000 shares. He ended the quarter with 340,000 shares, representing 0.83% of the equity portfolio. The stock’s first-quarter share price averaged $35. He started the position in the fourth quarter of 2018 when the price averaged $37.
Consol Energy Inc. has a market cap of $827.780 million; its shares were traded around $29.98 Thursday with a price-earnings ratio of 8.12 and price-sales ratio of 0.59.
CNX Resources Corp. (CNX, Financial)
Einhorn raised his CNX Resources position by 65.90%, buying 2.3 million shares. The holding totaled 5,790,100 shares, representing 4.43% of the long equity portfolio at the end of the first quarter. The stock’s first-quarter share price averaged $11. He started the position in the third quarter of 2014, when the price averaged around $33.
CNX Resources Corp. has a market cap of $1.73 billion; its shares were traded around $8.87 Thursday with a price-earnings ratio of 10.57 and price-sales ratio of 1.06.
AerCap Holdings NV (AER, Financial)
Einhorn increased his AerCap Holdings holding by 8.24%, buying 317,000 shares. He ended the quarter with 4,163,078 shares, representing 13.76% of the equity portfolio. The price in the first quarter averaged $45. He started the position in the second quarter of 2014 when the price averaged $44.
AerCap Holdings NV has a market cap of $6.91 billion; its shares were traded around $50.34 with a price-earnings ratio of 7.41 and price-sales ratio of 1.59. AerCap Holdings NV had an annual average earnings growth of 19.20% over the past 10 years.
See David Einhorn (Trades, Portfolio)’s portfolio here.
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