David Einhorn's hedge fund outperformed the S&P 500 by being bearish, with top holdings in gold.
From Yahoo Finance: 2025-04-27 18:33:00
In the first quarter of 2025, the S&P 500 fell roughly 4.6% due to high valuations and tariff concerns. Billionaire David Einhorn’s hedge fund, now DME Capital Management, generated an 8.2% return by turning bearish in February over Trump administration policies.
Einhorn’s fund, Greenlight Capital, turned to gold in the quarter and shorted undisclosed consumer companies. By the end of 2024, Greenlight owned 36 stocks valued at close to $1.95 billion, with Green Brick Partners being the largest position.
Green Brick Partners, a homebuilder, owns over 37,800 lots and operates in states with growing populations like Texas, Florida, and Georgia. Strong performance in recent years with a compound annual growth rate of 39% since 2020 and high returns on assets and equity.
CONSOL Energy, a Pennsylvania-based coal producer, merged with Arch Resources to form Core Natural Resources, owning 11 mines. The company generates over 10% of revenue from China and India. Shares are down close to 32% this year due to tariff concerns and the shift away from coal.
Brighthouse Financial, a life insurance company, is up 9% this year and may be a potential acquisition target. The company struggled to raise its RBC ratio into a favorable range, sparking rumors of a potential sale. Analysts at Raymond James upgraded Brighthouse to a strong buy, anticipating significant shareholder value.
Consider investing in the 10 best stocks recommended by the Motley Fool Stock Advisor team. Green Brick Partners wasn’t included in the list, but historically, their picks have generated significant returns. Stock Advisor’s total average return is 872%, outperforming the S&P 500. Join Stock Advisor for the latest top 10 list.