Greenlight Capital Q1 Investor Letter Discloses New Stakes in General Motors Company (GM), AerCap Holdings N.V. (AER)

Chicago Bridge & Iron Company N.V. (NYSE:CBI) is another new addition to Greenlight’s equity portfolio, according to the letter. The stock lost over 40% over the last 52 weeks due to the engineering company’s exposure to energy, which took a hit from the declining oil prices. Greenlight took the opportunity to buy shares at $42.93 per unit, which represents eight times its expected earnings for the current year.

“We believe that energy prices may very well stay lower for longer, which might eventually lead to a smaller market opportunity. CBI has a sizeable backlog of projects that should support earnings for several years. We also believe that some market participants are overly concerned about costs associated with two nuclear facilities under construction that are likely to be completed late and over budget. While the delays and costs are real, we believe the market is vastly overestimating how much of those costs will be borne by CBI as opposed to its construction partner (Westinghouse) and consumers, who will see it in their energy bills,” Greenlight also said.

Chicago Bridge & Iron Company N.V. (NYSE:CBI) was also mentioned in Greenlight’s latest 13F filing, with the stake containing 2.94 million shares with shared investment discretion. The largest shareholder of Chicago Bridge & Iron Company N.V. (NYSE:CBI) among institutional investors is Warren Buffett’s Berkshire Hathaway, which owns 10.70 million shares as of the end of 2014.

Among other things, Greenlight also mentioned that it has reduced its net exposure to 14% from 30%. The fund stated its bull case that “equities haven’t yet reached bubble levels at a time when fixed income is behaving bubbly, and that the Fed will support the market.” The investor also added that it closed several positions, including Aetna Inc (NYSE:AET), Safeway, Freescale Semiconductor, and Lorillard Inc. (NYSE:LO), most of which were generating a significant negative internal rate of return.

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