David Einhorn is a legendary investor who runs Greenlight Capital, a hedge fund which has over $1.38 billion in managed 13F securities. Greenlight said in its latest letter to investors that it started off 2019 on a good note, returning 11.0% in the first quarter, reversing losses incurred in the fourth quarter of 2018. Let’s take a quick look at the biggest stock picks of the hedge fund by analyzing its 13F filings for the fourth quarter.
Altice USA Inc (NYSE: ATUS)
David Einhorn’s hedge fund acquired 1.21 million shares of Altice in the fourth quarter of 2018, upping its stake in the company to over $67 million. Earlier in April, JPMorgan said that the chance of a merger between Charter Communications and Altice USA is still on the horizon. The stock gained value after the bank’s comments. In March, Reuters reported that Altice USA (NYSE:ATUS) is considering a sale of its Lightpath fiber unit for about $3 billion.
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Hilton Grand Vacations Inc (NYSE: HGV)
Greenlight Capital bought 1,120,000 shares of Hilton Grand Vacations Inc (NYSE: HGV) in the fourth quarter of 2018. The fund now has a total stake of $29.55 million. Hilton Grand Vacations recently entered into a partnership with Japan Airlines (OTCPK:JAPSY, OTC:JPNRF) to develop new programs and services that capitalize on Hilton’s vacation ownership and JAL’s Hawaii flight experience. In February, the company reported a non-GAP EPS of $1.83 for the fourth quarter, beating the Street’s forecast of $0.62. Revenue in the quarter came in at $624 million, which shows a year-over-year growth of 43%.
Adient PLC (NYSE: ADNT)
David Einhorn loaded up on Adient in the fourth quarter of 2018, buying 843,013 shares of the company. Adient PLC (NYSE: ADNT) manufactures automotive seating solutions. The stock recently came into the limelight after the company provided preliminary fiscal second-quarter results and launched a secured note offering designed to refinance some of its existing debt load. Recently, the stock was upgraded by Bank of America Merrill Lynch analyst John Murphy. The analyst upgraded the stock to “Buy” from “Neutral” because he believes the company would be able to refinance its debt very soon. On April 1, Robert W. Baird upgraded Adient (NYSE:ADNT) stock to “Neutral” from “Underperform.” The firm has a price target of $14 for the stock.
Shutterfly, Inc. (NASDAQ: SFLY)
Greenlight capital acquired 521,200 shares of Shutterfly, Inc. (NASDAQ: SFLY) in the fourth quarter of 2018. The image-publishing company’s Q4 results surpassed analyst expectations. The company’s revenue in the quarter increased by a whopping 60%. Investment firm KeyBanc recently upgraded Shutterfly from Sector Weight to Overweight.
The author does not have an investment in stock discussed in this article.