Billionaire David Einhorn's Hedge Fund Crushed the Stock Market in the First Quarter of 2025. Here Are His Top 3 Holdings.

1 month ago 28

Bram Berkowitz, The Motley Fool

Sun, Apr 27, 2025, 3:33 PM 5 min read

It was a volatile archetypal 4th for the broader benchmark S&P 500 index, which dealt with questions astir precocious valuations and concerns astir tariffs, though the archetypal quarter, ending connected March 31, came close earlier the large tariff-induced sell-off successful April. In the archetypal quarter, the S&P 500 fell astir 4.6%.

Meanwhile, billionaire David Einhorn's hedge fund, Greenlight Capital, present known arsenic DME Capital Management, generated an 8.2% return, according to Reuters. In a missive to shareholders viewed by Reuters, Einhorn said the money turned bearish successful February, acrophobic astir the Trump administration's policies.

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Einhorn said Greenlight turned to golden successful the 4th and besides enactment respective shorts connected against undisclosed user companies. At the extremity of 2024, Einhorn's money owned 36 stocks valued astatine adjacent to $1.95 billion. Here were Greenlight's 3 largest holdings astatine the extremity of 2024.

By acold the fund's largest position, Einhorn really helped recovered the homebuilder Green Brick Partners (NYSE: GRBK). Einhorn partnered with the experienced existent property capitalist Jim Brickman during the Great Recession and formed a existent property equity money called JBGL, which began acquiring inexpensive onshore and lending to experienced but distressed homebuilders. The lodging marketplace yet recovered astir 2013, and past JBGL went nationalist done a reverse capitalization successful 2014 and became Green Brick.

Unlike galore homebuilders, Green Brick owns a batch of the onshore it builds on. At the extremity of 2024, the institution owned oregon controlled implicit 37,800 lots. Green Brick mostly operates successful charismatic lodging markets successful states with increasing populations, specified arsenic Texas, Florida, and Georgia.

Performance has been rather beardown successful caller years. In the 4th quarter, Green Brick closed a grounds 1,019 units. Since 2020, net person grown astatine a compound yearly maturation complaint of 39% and consistently generated precocious returns connected assets and equity.

The banal is up implicit 700% successful the past 5 years and inactive trades astatine lone 7 times guardant earnings. The lodging marketplace ever faces uncertainty, and pending tariffs could origin definite costs and worldly prices to rise, perchance impacting the business. However, fixed the unsocial attributes of the institution and its skilled absorption team, Green Brick tin surely support moving higher implicit clip and reclaim the highs seen successful precocious 2024.