David Einhorn (Trades, Portfolio) of hedge fund Greenlight Capital announced his first quarter buys this week but also told shareholders in his first quarter letter that he drastically reduced his long exposure from 30% to 14%.
The letter, obtained by Marketfolly, went on to say: "Bottom up: short candidates are easy to find ... the opportunity set on the long side is quite constrained. Top-down: Valuations are on the high side and earnings are in a precarious spot."
Einhorn purchased eight new long positions in the first quarter, generating 20% turnover in his portfolio that ended the quarter with 43 stocks valued at $7.65 billion. He maintained his preference for technology stocks, which make up 48.3% of the holdings.
The largest new positions he added were: General Motors Co. (GM, Financial), ON Semiconductor Corp (ON, Financial), Macy’s Inc. (M, Financial), SunEdison Semiconductor Ltd. (SEMI, Financial) and Santander Consumer USA Holdings Inc. (SC, Financial).
General Motors Co. (GM, Financial)
As his largest new position, Einhorn purchased 9,467,986 shares of General Motors Co., representing 4.64% of the portfolio. GM’s first quarter share price averaged $36.
General Motors Co. was incorporated as a Delaware corporation in 2009. General Motors Co. has a market cap of $56.45 billion; its shares were traded at around $35.12 with a P/E ratio of 16.4 and P/S ratio of 0.4. The dividend yield of General Motors Co. stocks is 3.4%.
ON Semiconductor Corp (ON, Financial)
Einhorn purchased 17,530,500 shares of ON Semiconductor Corp, representing 2.77% of the portfolio. The stock’s first quarter share price averaged $11.
ON Semiconductor Corp manufactures power management and motor driver semiconductor components control, convert, protect and monitor the supply of power to the different elements within a wide variety of electronic devices. ON Semiconductor Corp has a market cap of $5.48 billion; its shares were traded at around $12.77 with a P/E ratio of 30.10 and P/S ratio of 1.70. ON Semiconductor Corp had an annual average earnings growth of 4.1% over the past five years.
Einhorn purchased 1.68 million shares of Macy’s Inc., representing 1.42% of the portfolio. Macy’s first quarter average stock price was $64.
Macy's Inc. is incorporated in Delaware in 1985. The Company and its predecessors have been operating department stores since 1830. Macy's Inc. has a market cap of $23.57 billion; its shares were traded at around $69.08 with a P/E ratio of 16.20 and P/S ratio of 0.90. The dividend yield of Macy's Inc. stocks is 1.80%. Macy's Inc. had an annual average earnings growth of 13.40% over the past five years.
SunEdison Semiconductor Ltd. (SEMI, Financial)
Einhorn purchased 2.7 million shares of SunEdison Semiconductor Ltd., representing 0.91% of the portfolio. SunEdison Semiconductor’s first quarter average stock price was $22.
SunEdison Semiconductor Ltd. is incorporated in Singapore. SunEdison Semiconductor Ltd. has a market cap of $967.1 million; its shares were traded at around $23.27 with and P/S ratio of 1.20.
Santander Consumer USA Holdings Inc. (SC, Financial)
Einhorn purchased 2,172,251 shares of Santander Consumer USA Holdings, representing 0.66% of the portfolio. Santander’s first quarter average stock price was $21.
Santander Consumer USA Holdings Inc. a Delaware corporation incorporated in 1995. Santander Consumer USA Holdings Inc. has a market cap of $8.84 billion; its shares were traded at around $25.25 with a P/E ratio of 9.40 and P/S ratio of 1.80. The dividend yield of Santander Consumer USA Holdings Inc. stocks is 0.6%.
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