Greenlight Capital’s David Einhorn is in the middle of a stellar year as his inflation bets and other trades pay off. Here’s a breakdown of his latest holdings that propelled the big outperformance. The star manager kept most of his inflation plays relatively unchanged during the third quarter. Green Brick Partners , a bet on rising housing prices, continued to be his biggest holding, a new regulatory filing showed. Brighthouse Financial , a play on higher long-term interest rates, as well as Canadian mining company Teck Resources , a play on rising commodities, also remained in Einhorn’s top 10 holdings in the last quarter. Einhorn’s hedge fund returned 4% in the third quarter of 2022, bringing its performance for the first nine months to 17.7%, according to an investor letter. That compares with a 23.9% decline for the S & P 500 during the same period amid the Federal Reserve’s aggressive tightening action. During the third quarter, Einhorn increased his stake in tech stock Kyndryl Holdings to $60 million. The New York-based Kyndryl is an information-technology services company that was spun off from IBM last November. Meanwhile, the hedge fund manager added to his holding in LivaNova drastically, making the medical device company Greenlight’s eighth biggest bet, the filing showed. The stock is down almost 40% this year. Einhorn previously said he’s bearish on equities as the Fed continues to deflate the market with aggressive rate hikes. He said has reduced his gross long exposure substantially this year and he expects to have additional dry powder after exiting his short-term Twitter investment, Einhorn said in the investor letter.
© heardonwallstreet.com