There was 1 line that stood out in David Einhorn’s Q2 letter to investors: “our benefits have been significantly even worse than we could have imagined, and it’s been a bull market place to boot.” And searching at the fund’s just introduced 13F, we may have an notion why.
In the second quarter, Einhorn’s Greenlight Funds, which observed its reported extensive positions shrink from $4 billion as of March 31, 2018 to just $3.1 billion on June 30, 2018, slashed the bulk of his Apple stake, or some 78%, from 628,100 shares or a worth of $105.4 million as of March 31, to 142,100 shares, leaving Greenlight with only $26.3 million as of the stop of Q2. This is unfortunate due to the fact in the third quarter, AAPL soared a further 13%. Meanwhile, Einhorn’s best positions, Standard Motors and Brighthouse Economical have both equally missing worth in the third quarter.
1 presumes that the explanation behind the trimming of the really liquid AAPL place was the will need to satisfy redemption requests.
In the meantime, what is not shown in the 13F is the most important resource of P&L reduction for Einhorn, his small basked, and specifically his Tesla quick. The consequence, as we mentioned very last month, is that Greenlight’s key fund misplaced .3% in July, and its complete reduction for the very first 50 % was 19%.
Some other highlights from the Greenlight 13-F
- New buys: GPS, DG, TJX, AZO, DLTR, BBY
- Exits: CEIX, DDS, TPR, BLMN, Five, ANF, PYPL, URBN, SFM, ODP
- Improved positions in: IAC, BHF
- Slash positions in in: MU, AER, AAPL, MYL, VOYA, PRGO, CNDT, ADNT, CNX, DSW
Entire breakdown of Einhorn’s 13F under: