Top 5 Stocks Billionaire David Einhorn Just Added to His Portfolio

4. Discovery, Inc. (NASDAQ:DISCA)

Value of Greenlight Capital‘s 13F Position: $15.35 million

Number of Hedge Fund Shareholders: 73

Greenlight Capital built a stake of 652,000 shares of Discovery, Inc. (NASDAQ:DISCA) during Q4, joining other prominent hedge funds like AQR Capital and Omega Advisors as new shareholders of DISCA. Nonetheless, there’s a 21% drop in hedge fund ownership of the stock over the past three quarters.

Discovery, Inc. (NASDAQ:DISCA) is set to merge with AT&T Inc. (NYSE:T)’s WarnerMedia division in a move that’s been approved by regulators. The tie-up will group several popular and powerful brands under one streaming umbrella called HBO Max. Included will be television channels like The Food Network and Animal Planet, as well as the bulk of Warner’s catalog of hit movies and HBO’s stable of award-winning shows. As of last May, the combined entity was anticipated to pull in $53 billion in sales in 2023.

Longleaf Partners Fund talked about Discovery, Inc. (NASDAQ:DISCA) in its Q4 2021 investor letter, noting that the stock has been unfairly grouped with other dying legacy media stocks by investors:

“While our largest holdings received at least a little market appreciation, our detractors were unreasonably punished based on headline-level misunderstandings. Discovery Communications is grouped with dying legacy media stocks, and many market participants are sitting this one out until the plan for the merged Warner Bros. Discovery is obvious. We believe Discovery is obvious. We view this as an opportunity and would also note that Discovery’s sharp stock price rally to begin 2022 indicates that at least some of the late year selling pressure might have been tax loss-selling or just plain capitulation.”