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3 investments David Einhorn believe will pay off big in the future

By:
on Nov 23, 2022
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  • David Einhorn's investments at Greenlight Capital outperformed the stock market in 2022
  • CONSOL Energy is one of his big winners
  • Greenlight Capital owns about 3.3 million shares of Brighthouse Financial

David Einhorn needs no introduction as he is one of Wall Street’s most famous investors. He is not afraid of making bold calls, and the hedge fund he manages, Greenlight Capital, has about $1.4 billion in AUM (i.e., Assets Under Management).

Greenlight Capital invests mainly in debt offerings in corporate America and publicly listed stocks. Here are three of Einhorn’s bets and how they performed so far in 2022.

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Green Brick Partners

Green Brick Partners (NYSE:GRBK) is a homebuilder company in the United States. Founded in 2006, it is headquartered in Texas.

EPS or Earnings per Share rose 61.72% YoY in 2022, and the company operates with a gross profit margin of 29.31%, lower than the sector median by some -18%. However, the EBIT Margin trailing twelve months exceeds the sector median by +159.50%.

Greenlight Capital owns about 17 million shares or some 25% of the company. The stock price is down -16.43% YTD.

Brighthouse Financial

Brighthouse Financial (NASDAQ:BHF) is a life and health insurance company from the United States. Headquartered in Charlotte, North Carolina, it employs about 1.5k people and was founded in 2016.

The stock price is positive YTD, up by about -4% – quite a performance considering the S&P 500 being down more than -15%.

With close o $220 billion in total assets, Brighthouse Financial is one of the US’s largest annuities and life insurance providers. Greenlight Capital owns over 3.3 million shares of it, or about 10% of its portfolio.

CONSOL Energy

CONSOL Energy (NYSE:CEIX) is an American company producing bituminous coal. Active in the energy sector, it saw its stock price surge in 2022 on the back of the global energy crisis.

The gross profit margin of 48.05% exceeds the sector median by 16.66%. As such, it is no wonder that the stock outperformed, up +182.23% YTD. Moreover, CONSOL Energy pays a dividend.

It makes up over 7.5% of Greenlight Capital’s portfolio, as Einhorn decided to buy 1.7 million shares.

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