David Einhorn’s Top 5 Favorite Stocks
Due to investment strategies that include placing bets against a rising market, hedge funds are often known for significantly underperforming the broad equity market. However, David Einhorn’s Greenlight Capital has managed to post impressive gains for nearly two decades. Courtesy of a new filing, investors have a glimpse at how the fund manager is investing.
Many institutional investment managers recently filed their mandatory 13-F with the Securities & Exchange Commission. The filing is a quarterly report of equity holdings required by managers that oversee more than $100 million in qualifying assets and must be filed within 45 days of the end of each quarter. The 13-F provides a glance at what firms did in the previous quarter, but investors should keep in mind that hedging and trading strategies of each fund are still unknown.
Greenlight Capital made several changes to its equity holdings during the fourth-quarter. The firm sold its entire stake in NVR (NYSE:NVR) and reduced holdings in Rite Aid (NYSE:RAD), Legg Mason (NYSE:LM), and Delphi Automotive (NYSE:DLPH). New positions were taken in well-known names such as Anadarko Petroleum (APC), BP (NYSE:BP), EMC (NYSE:EMC), and Take-Two Interactive Software (NASDAQ:TTWO). Since inception in 1996, Greenlight Capital has returned 19.5 percent on an annualized basis.
Let’s follow the money and take a look at Greenlight Capital’s top five holdings, according to dollar value.