David Einhorn’s Greenlight Capital Portfolio: Top 5 Stock Picks

2. Brighthouse Financial, Inc. (NASDAQ:BHF)

Greenlight Capital’s Stake Value: $196,202,000

Percentage of Greenlight Capital’s 13F Portfolio: 11.22%

Number of Hedge Fund Holders: 30

Brighthouse Financial, Inc. (NASDAQ:BHF) is a North Carolina-based company that offers annuity and life insurance products in the United States. In the fourth quarter of 2021, David Einhorn reported owning 3.78 million shares of Brighthouse Financial, Inc. (NASDAQ:BHF), worth $196.2 million, representing 11.22% of the total 13F securities. 

On April 12, Barclays analyst Tracy Benguigui reiterated an Equal Weight rating on Brighthouse Financial, Inc. (NASDAQ:BHF) and slashed the firm’s price target on the stock to $55 from $61. The analyst stated that recent outperformance in life insurance compared to banks and the S&P 500 Index feels more like a catch-up trade than improved business fundamentals. He continues to see possible underperformance for the insurance group if a global recession occurs in 2024.

Brighthouse Financial, Inc. (NASDAQ:BHF) reported its Q4 results on February 10, posting an EPS of $4.02, topping estimates by $0.50. Revenue over the period jumped 8.06% from the prior-year quarter to $2.32 billion, surpassing market consensus by $119.69 million. 

Among the hedge funds tracked by Insider Monkey, 30 funds were long Brighthouse Financial, Inc. (NASDAQ:BHF) at the end of December 2021, with total stakes valued at $468.3 million. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is a prominent position holder in the company, with 1.3 million shares worth $72.2 million. 

Here is what Greenlight Capital has to say about Brighthouse Financial, Inc. (NASDAQ:BHF) in its Q4 2021 investor letter:

“Brighthouse Financial (BHF) gained 15% as the shares appreciated from $45.23 to $51.80 each. The company reported another strong quarter and accelerated its pace of share buybacks. For the year, BHF advanced 43%. Due mostly to strong investment performance, adjusted earnings per share are expected to be $18.52 in 2021, compared to expectations a year ago of $11.45. We expect BHF to announce that it has repurchased about 12% of its shares during 2021. The analysts continue to be unimpressed, as the lone bull on the stock downgraded his rating, and BHF now has 8 ‘hold’ ratings and 2 ‘sell’ ratings. BHF itself is the main buyer of its own shares; we expect the company to retire another double-digit percentage of the float in 2022.”