According to current portfolio statistics, a Premium feature, the top-performing stocks year to date in David Einhorn (Trades, Portfolio)’s equity portfolio as of September include CONSOL Energy Inc. (CEIX, Financial), Concentrix Corp. (CNXC, Financial), The ODP Corp. (ODP, Financial), Resideo Technologies Inc. (REZI, Financial) and Teck Resources Ltd. (TECK, Financial).
Einhorn, president of Greenlight Capital Re Ltd. (GLRE, Financial), takes an activist approach to investing, believing that an investment approach that emphasizes intrinsic value has higher potential to achieve consistent returns and safeguard capital. Despite this, Greenlight returned -2.90% during the second quarter, underperforming the Standard & Poor’s 500 Index's return of 8.5%. Although long positions contributed 5.30%, short positions and macro holdings detracted 4.60% and 3.30%.
Despite the setback, Greenlight said in its shareholder letter that the firm “had the wind at [its] back” during the better parts of the past nine months, driven by value stocks outperforming growth stocks and rising inflation expectations and Treasury yields. According to the heat map, a new Premium feature of GuruFocus, most of Greenlight’s top 20 holdings have positive year-to-date returns.
CONSOL Energy
Greenlight owns 2,169,370 shares of CONSOL Energy (CEIX, Financial), giving the position 2.51% equity portfolio weight. The stock has gained approximately 252.70% year to date and is significantly overvalued based on Friday’s price-to-GF Value ratio of 2.42.
GuruFocus ranks the Canonsburg, Pennsylvania-based energy company’s financial strength 3 out of 10 on several warning signs, which include a low Altman Z-score of 0.99 and debt ratios that underperform more than 80% of global competitors.
Greenlight said in its quarterly letter that CONSOL is “poised to benefit from rising coal prices,” yet trades at a “stale” consensus earnings multiple that “does not reflect recent coal price gains.”
Other gurus with holdings in CONSOL include AzValor Internacional FI and Chuck Royce (Trades, Portfolio)’s Royce Investment Partners.
Concentrix
Greenlight owns 389,909 shares of Concentrix (CNXC, Financial), giving the position 3.94% equity portfolio space. The stock has gained 76.37% year to date.
GuruFocus ranks the Fremont, California-based customer management software company’s financial strength 6 out of 10 on the back of a high Altman Z-score of 3.62 despite interest coverage and debt ratios underperforming more than 64% of global competitors.
Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management also has a holding in Concentrix.
The ODP Corp.
Greenlight owns 646,932 shares of The ODP Corp. (ODP, Financial), giving the position 1.95% weight in the equity portfolio. The stock has gained 50.41% year to date and is significantly overvalued based on Friday’s price-to-GF Value ratio of 1.90.
The Boca Raton, Florida-based company operates business services and retails office products through its Office Depot and Office Max stores. GuruFocus ranks the company’s financial strength 5 out of 10 on the back of interest coverage and debt ratios underperforming more than half of global competitors despite having a high Piotroski F-score of 7.
ODP’s Altman Z-score of 2.19 further suggests moderately low financial strength.
Resideo Technologies
The firm owns 1,420,953 shares of Resideo Technologies (REZI, Financial), allocating 2.68% of its equity portfolio to the stake. The stock has gained 38.24% year to date.
GuruFocus ranks the Austin, Texas-based residential business service company’s financial strength 5 out of 10: Although ODP has a high Piotroski F-score of 8, interest coverage and debt ratios underperform more than 60% of global competitors.
Teck Resources
Greenlight owns 4,044,960 shares of Teck Resources (TECK, Financial), giving the position 5.85% equity portfolio weight. According to top 10 holdings statistics, a Premium feature, Teck represents the firm’s fourth-largest holding. Shares have gained 35.16% year to date.
GuruFocus ranks the Vancouver-based mining company’s profitability 6 out of 10 on the back of operating margins outperforming more than 60% of global competitors despite three-year revenue and earnings growth rates underperforming more than 65% of global metals and mining companies.
Greenlight said in its shareholder letter that it believes Teck may benefit from the increased demand for copper due to the “electrification of the automobile industry and expansion of green energy.”
Dodge & Cox and Stanley Druckenmiller (Trades, Portfolio) also have holdings in Teck Resources.
