Can David Einhorn’s Large-Cap Picks Beat the Market?

The holding of General Motors Company (NYSE:GM) in the equity portfolio of Greenlight Capital amounted to 9.47 million shares with a market value of $355.05 million as of March 31. Year-to-date the shares of this automobile manufacturer are down by 4.81%, while the industry as a whole returned around 20.66%, driven by increased demand from cheap oil consumers. Warren Buffett’s Berkshire Hathaway finished the first quarter with 41.00 million shares on the balance, which were valued at $1.54 billion.

David Einhorn trimmed his holding in Time Warner Inc (NYSE:TWX) by a mere 1%, ending up with 3.78 million shares valued at $319.05 million after the first three months of the year. On June 16, analysts from JPMorgan Chase & Co. updated their price target in this $73 billion media company to $96 from $91, while the shares are currently traded at $88.49. The largest shareholder of Time Warner Inc (NYSE:TWX) in our database, as of March 31, was OZ Management, led by Daniel S. Och, owning some 9.06 million shares worth $764.61 million.

Lastly, Einhorn reported owning 3.11 million shares of Liberty Global plc (NASDAQ:LBTYK), worth $154.86 million. Liberty Global Plc (NASDAQ:LBTYK) is the largest international cable manufacturer, operating in 14 countries around the world. The company aims at high growth, both organically and through M&A deals. One of the latest consummated acquisitions was closed with Liberty Cablevision of Puerto Rico LLC, the second-largest cable and broadband services provider in Puerto Rico. On June 3, investors lost a substantial 6.85% during a single day. It is interesting that such a downturn occurred on a large relative volume and without apparent negative news. According to our database, Boykin Curry’s Eagle Capital Management topped the list of the largest shareholders of this company, owning around 32.72 million shares valued at $1.63 billion.

Disclosure: None