Greenlight Capital, an investment management company, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned (1.3%), net of fees and expenses, in the first quarter compared to a 7.5% return for the S&P 500 Index. Furthermore, the longs gained 9.9%, while its shorts lost 10.8% and macro lost 0.4%, net of fees and expenses during the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Greenlight Capital highlighted stocks like Black Knight, Inc. (NYSE:BKI) in the first quarter 2023 investor letter. Headquartered in Jacksonville, Florida, Black Knight, Inc. (NYSE:BKI) is a software technology company that provides integrated software, data, and analytics solutions. On May 02, 2023, Black Knight, Inc. (NYSE:BKI) stock closed at $54.00 per share. One-month return of Black Knight, Inc. (NYSE:BKI) was -5.74%, and its shares lost 25.86% of their value over the last 52 weeks. Black Knight, Inc. (NYSE:BKI) has a market capitalization of $8.467 billion.
Greenlight Capital made the following comment about Black Knight, Inc. (NYSE:BKI) in its Q1 2023 investor letter:
“The new small long positions are Black Knight, Inc. (NYSE:BKI), New York Community Bancorp (NYCB), and First Citizens BancShares (FCNCA).
BKI is a software provider to the mortgage servicing and origination industries. Shareholders agreed to sell the company to Intercontinental Exchange (ICE) for a package of cash and shares worth just about $75 per BKI share. In order to cure the only meaningful overlap between the two businesses, ICE has also offered to divest BKI’s mortgage origination unit. Despite the pending sale of this business to Constellation Software, the FTC sued to block the deal. It is now up to a federal judge to determine the merits of the case. We estimate a conservative value for BKI in a deal break scenario to be $51 per share. We acquired our stake for an average price of $60.59 per share. BKI shares ended the quarter at $57.56, implying just greater than a 25% chance of the deal succeeding. We handicap the odds at closer to 75%.”
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Black Knight, Inc. (NYSE:BKI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Black Knight, Inc. (NYSE:BKI) at the end of the fourth quarter which was 47 in the previous quarter.
We discussed Black Knight, Inc. (NYSE:BKI) in another article and shared Madison Investors Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
