Market Overview

Einhorn's Positions In HPE, Micron, Tempur Sealy Create Curious Volatility

Einhorn's Positions In HPE, Micron, Tempur Sealy Create Curious Volatility

Last quarter, Greenlight Capital exited its short on Best Buy Co Inc (NYSE: BBY) with a loss and liquidated its PVH Corp (NYSE: PVH) holdings with a gain, according to a Tuesday investor letter from managing partner David Einhorn.

The letter also referenced new stakes in Tempur Sealy International Inc (NYSE: TPX), Hewlett Packard Enterprise Co (NYSE: HPE) and Micron Technology (NASDAQ: MU).

The letter cited CONSOL Energy Inc. (NYSE: CNX) and General Motors Company (NYSE: GM) as the firm’s greatest contributors, while a Caterpillar Inc. (NYSE: CAT) short and Mylan N.V. (NYSE: MYL) bet posted the most damaging losses.

The unmentioned components of Einhorn’s portfolio can be pieced together with a review of his first-quarter and second-quarter 13F filings.

Curious Street Reactions

The Tuesday morning news prompted unusual price action in Tempur Sealy and Hewlett Packard Enterprise. The former saw a 3.1-percent spike followed by a 3.3 percent drop, while the latter popped 1 percent before falling 1.4 percent.

Traders seemed to have recalled Greenlight’s pre-existing stakes in these companies and Micron, which appear to have never been exited.

Despite the investor letter’s assertion — “we added three notable long positions this quarter” — Einhorn’s August 13F filing reports positions in all three. The Securities and Exchange Commission’s EDGAR site does not show 13G or 13D filings suggesting those holdings had been sold between the releases of the 13F and the investor letter.

Greenlight Capital did not respond to Benzinga’s request for clarification at time of publication.

Einhorn’s Authority

Einhorn, a notable short seller with previous positions on United States Steel Corporation (NYSE: X), Netflix, Inc. (NASDAQ: NFLX) and Chipotle Mexican Grill, Inc. (NYSE: CMG), has a mixed track record on his calls.

His challenged foresight recently lost the confidence of investors. Greenlight Capital’s two consecutive years of underperformance led to $400 million in investment capital outflow, according to a July report in the Wall Street Journal.

Related Links:

Greenlight's Controversial Dual-Class Stock Split Proposal Defeated At GM's Shareholder Meeting

Coattail Investing: How To Trade Like David Einhorn

Image credit: PokerListings, YouTube


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