Renowned investor David Einhorn recently submitted his 13F report for the second quarter of 2023, which concluded on June 30, 2023. Einhorn, known for his value-oriented investment philosophy, manages a portfolio comprising 41 stocks with a total value of $2.13 billion. His top holdings for the quarter were Green Brick Partners Inc (GRBK, Financial), Consol Energy Inc (CEIX), and Brighthouse Financial Inc (BHF), representing 44.21%, 9.05%, and 6.93% of the portfolio respectively.
Top Trades of the Quarter
Among Einhorn's most significant trades of the quarter were changes in his positions in Green Brick Partners Inc, Global Payments Inc, and Kyndryl Holdings Inc.
Green Brick Partners Inc (NYSE:GRBK)
Einhorn reduced his stake in Green Brick Partners Inc (NYSE:GRBK) by 3,364,497 shares, impacting the equity portfolio by 9.43%. The stock traded at an average price of $51.57 during the quarter. As of August 14, 2023, GRBK's price stood at $52.78, with a market cap of $2.40 billion. The stock has returned 73.48% over the past year. GuruFocus rates the company's financial strength and profitability at 7 and 8 out of 10, respectively. Valuation-wise, GRBK has a price-earnings ratio of 9.18, a price-book ratio of 2.13, a price-earnings-to-growth (PEG) ratio of 0.21, an EV-to-Ebitda ratio of 7.55, and a price-sales ratio of 1.39.
Global Payments Inc (NYSE:GPN)
In a complete divestment, Einhorn sold his entire 600,430-share investment in Global Payments Inc (NYSE:GPN), which previously accounted for 3.43% of his portfolio. The shares traded at an average price of $102.86 during the quarter. As of August 14, 2023, GPN's price was $125.78, with a market cap of $32.70 billion. The stock has returned -6.06% over the past year. GuruFocus rates the company's financial strength and profitability at 4 and 8 out of 10, respectively. In terms of valuation, GPN has a price-earnings ratio of 41.93, a price-book ratio of 1.47, a PEG ratio of 6.87, an EV-to-Ebitda ratio of 15.21, and a price-sales ratio of 3.62.
Kyndryl Holdings Inc (NYSE:KD)
Einhorn also reduced his investment in Kyndryl Holdings Inc (NYSE:KD) by 4,050,079 shares, impacting the equity portfolio by 3.25%. The stock traded at an average price of $13.55 during the quarter. As of August 14, 2023, KD's price was $16.54, with a market cap of $3.79 billion. The stock has returned 46.76% over the past year. GuruFocus rates the company's financial strength and profitability at 5 and 2 out of 10, respectively. In terms of valuation, KD has a price-book ratio of 3.05, an EV-to-Ebitda ratio of 9.14, and a price-sales ratio of 0.22.
In conclusion, David Einhorn (Trades, Portfolio)'s Q2 2023 13F filing reveals a portfolio that continues to reflect his value-oriented investment philosophy. His top trades for the quarter demonstrate a strategic balance between maintaining positions in high-performing stocks and making calculated exits from others.
