David Einhorn may write in his latest quarterly letter to investors that “from a portfolio perspective, this quarter was a quiet one” but based on his activity the famous poker playing hedge fund manager was quite busy.
Among his various moves, Greenlight added a new position in Perrigo in the first quarter, after several large guidance cuts, and now sees the company’s earnings forecast as achievable. He also took a new long position in Conduent, as he believes the company as burdened with ‘underearning’ contracts that it can renegotiate and exit. He also took a new long in unidentified European financial institution. On the other side, Greenlight closed shorts in Signet Jewelers, LyondelBasell, and RPC and also closed out shorts in three Canadian banks at a loss after oil and credit loss thesis didn’t ‘sufficiently’ materialize.
Einhorn said he still likes Apple, which is a ‘superior company that still trades for less than a market multiple’ while trimming his short position in Rite Aid after initially expecting deal with Walgreens to close at $9-share with FTC approval, and is watching the RAD situation ‘carefully’ as original thinking was incorrect.
Performance wise, the fund returned 1.3% in Q1, underperforming the S&P’s 6.1% rise. “Apple (AAPL), Chemours (CC) and gold were the biggest winners; the bubble basket, Rite Aid (RAD), and a short position in Tesla (TSLA) were the biggest losers.” And as he admits, “”It was a difficult quarter to be short the bubble basket, and TSLA in particular.”
One day, TSLA will fall, but not yet.
This post was published at Zero Hedge on Apr 25, 2017.
Follow on Twitter
Recent Comments