David Einhorn’s Top 5 Stock Picks

1. Green Brick Partners, Inc. (NASDAQ: GRBK)

Value: $553,765,000
Percent of David Einhorn’s 13F Portfolio: 33.3%
No. of Hedge Fund Holders: 12

Texas-based home building and land development company Green Brick Partners Inc. tops the list of David Einhorn’s top 10 stock picks. The stock accounts for about 33% of Greenlight’s portfolio, as the hedge fund owns a $553.8 million stake in the company. In the fourth quarter, the company’s GAAP EPS came in at $0.58, beating the Street’s forecast by $0.02. Revenue in the quarter jumped 10% to $254 million, missing the estimates by $ million.

According to our database, the number of GRBK’s long hedge funds positions decreased at the end of the fourth quarter of 2020. There were 12 hedge funds that hold a position in Green Brick Partners, compared to 13 funds in the third quarter. The biggest stakeholder of the company is David Einhorn’s Greenlight Capital, with 24.1 million shares, worth $553.8 million.

In their Q3 2020 Investor Letter, Greenlight Capital highlighted a few stocks and Green Brick Partners Inc. (NASDAQ:GRBK) is one of them. Here is what Greenlight Capital said:

“Green Brick Partners (GRBK) was the primary driver of this quarter’s results. The shares advanced from $11.85 to $16.10. Housing appears to be a major beneficiary from the pandemic, as low interest rates combined with an expanded preference for single-family detached housing has spurred demand. GRBK is well-positioned in secularly growing markets including Dallas, Atlanta, Colorado Springs and Vero Beach. In the second quarter, the company earned $0.66 per share, shattering consensus estimates of $0.42. The company’s record backlog and strong order rate bode well for future earnings. Current consensus of $1.88 per share this year suggests EPS growth of over 60% year-over-year. We believe the shares remain deeply undervalued at 9x estimates, as business momentum continues to accelerate.”

You can also take a peek at Billionaire Carl Icahn’s Top 10 Picks and Cathie Wood’s Top 10 Stock Picks.

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