Greenlight Capital posted positive returns for first-quarter 2024 after generating a strong 5.3 percent gain in March. This compares with a 3.1 percent increase for the S&P 500 and a 1.8 percent rise for the Nasdaq Composite.
As a result, the hedge fund headed by David Einhorn is up 4.9 percent for the year. However, it remains way behind the major indices; the S&P 500 was up 10.2 percent for the quarter and the Nasdaq rose 9.1 percent.
It is not known what drove Greenlight’s climb in March, which was somewhat surprising given that the hedge fund firm has been positioned conservatively for some time. The firm may have shifted its portfolio to be more bullish heading into the month. The firm’s first-quarter letter, which is sent to clients around the end of April, will reveal Einhorn’s moves.
In any case, many of Greenlight’s largest longs posted strong gains last month. They were led by No. 5 long Tenet Healthcare, an operator of hospitals and ambulatory-surgery centers. The stock surged about 13 percent for the month and was up 32 percent for the quarter. In fact, it has doubled since the second week in November.
No. 3 long Brighthouse Financial, a marketer of annuities and life insurance, jumped nearly 11 percent for the month. For the quarter, however, it finished down 2.5 percent.
Alight, a software-based provider of health and wealth benefits and payroll solutions, rose more than 9 percent in March and was up about 15.5 percent for the quarter. Greenlight established the position in the fourth quarter at an average price of $7.98, according to its fourth-quarter letter, so the stock is up about 23 percent from that price.
Elsewhere, shares of SPDR Gold Trust, an exchange-traded fund designed to reflect the price of gold bullion, was up almost 9 percent in March and about 7.6 percent year-to-date. The firm’s largest long, Green Brick Partners, a homebuilding and land development company, rose 3 percent in March and 16 percent for the quarter.
Not all of Greenlight’s largest longs made money in March or for the first quarter.
No. 2 long CONSOL Energy, the giant coal producer, was down about 2.4 percent last month and nearly 17 percent for the quarter. Kyndryl Holdings, an information technology infrastructure services provider, dropped 1 percent in March but is nonetheless up about 4.7 percent for the year. And retailer Office Depot fell more than 6 percent for the month and is off nearly 6 percent so far this year.