Highlights from Greenlight’s Q3 Letter (Part 3): Long & Short Exposure to Energy & More

AerCap Holdings N.V. (NYSE:AER) represents one of Greenlight’s long bets, and it fell by over 16% between July and September. The decline was mainly caused by concerns over the growth of emerging markets, but the company still managed to post solid financial results for the latest reported quarter and provided “sharply rising estimates.” In its most recent 13F filing, Greenlight reported ownership of 5.58 million shares of AerCap Holdings N.V. (NYSE:AER) held as of the end of June, up by 48% over the second quarter.

Then there is Chicago Bridge & Iron Company N.V. (NYSE:CBI), in which Greenlight disclosed a stake containing 6.75 million shares. Due to Chicago Bridge & Iron Company N.V. (NYSE:CBI)’s large exposure to the energy sector, its stock was also negatively affected by the slump in prices. Similar to his other bets, Einhorn keeps a long-term focus on Chicago Bridge & Iron Company N.V. (NYSE:CBI) and is bullish on the stock because the company forecasted an increase in earnings for the current year and the next one.

Einhorn managed to strike big with his short positions, as we have outlined his short bets on Intel Corporation (NASDAQ:INTC) and Keurig Green Mountain Inc (NASDAQ:GMCR) in the first two articles covering the letter. Mallinckrodt PLC (NYSE:MNK) was no exception, since its stock has lost 41% since the beginning of 2015 and slid by 45% in the third quarter alone. However, despite this success, Einhorn did not cover his position in Mallinckrodt PLC (NYSE:MNK) because the company has lowered its guidance for most of its key products and it’s levered. In addition, the company is under risk due to the government’s concerns over drug pricing policies at many companies as confirmed by the recent slump of Valeant’s stock (see details).

Disclosure: None