David Einhorn - Greenlight Capital Investment Strategy (Dec 31, 2023)
As of Dec 31, 2023, the Greenlight Capital portfolio managed by David Einhorn demonstrates a sophisticated investment approach with 45 positions and an average holding period of 282 quarters. The strategy focuses on Basic Materials, Consumer Cyclical, Consumer Defensive, Energy, Financial Services, Healthcare, Industrials, Technology sectors with a typical position size of 1.3% of the portfolio.
The portfolio's risk management approach includes a maximum position size of 1.31% and sector diversification of 8%, exemplified by the case study of GREEN BRICK PARTNERS INC (GRBK). This strategic framework provides insights into David Einhorn's investment philosophy, risk management practices, and long-term value creation approach.
Investment Strategy Metrics
Key metrics revealing investment style, risk management, and performance characteristics
| Metric | Value | Category | Description |
|---|---|---|---|
| Holding Period | 9.4 months | Style | Average duration positions are maintained |
| Position Count | 45 | Style | Number of active positions in portfolio |
| Position Size | 1.3% | Risk | Typical allocation per position |
| Win Rate | 53.0% | Performance | Percentage of profitable positions |
| Average Return | 96.1% | Performance | Mean return across positions |
| Sharpe Ratio | 0.18 | Performance | Return per unit of risk taken |
Investment Case Study: GREEN BRICK PARTNERS INC (GRBK)
12/31/2014 - 11/10/2025
Performance Metrics
Total Return: 59.53%
Holding Period: 3967 days
Max Position Size: $592,369,623.00
Position Weight: 21.15%
Key Events
Investment Thesis
Entry Context: Initial position established based on fundamental analysis
Sector Conditions: Favorable market conditions in the sector
- Market volatility
- Sector-specific risks
Key Learnings
- Position sizing is critical for portfolio management
- Important to monitor sector exposure