Staff Reporter

The first quarter of 2025 proved to be tumultuous for the S&P 500 index, which faced heightened concerns over high valuations and tariffs. The quarter, ending March 31, saw the index drop approximately 4.6%, just ahead of a significant sell-off in April.

In contrast, billionaire David Einhorn’s hedge fund, Greenlight Capital—now rebranded as DME Capital Management—reported an impressive 8.2% return, according to Reuters.

In a letter to shareholders, Einhorn noted that the fund adopted a bearish stance in February, citing worries about the Trump administration’s policies.

During the quarter, Greenlight pivoted towards gold and took short positions against several undisclosed consumer companies.

By the end of 2024, the fund held 36 stocks valued at nearly $1.95 billion. Here are Greenlight’s three largest holdings as of late 2024.

Green Brick Partners — 28% of Portfolio

Green Brick Partners (GRBK) stands out as the fund’s largest position. Einhorn was instrumental in founding the homebuilder, teaming up with seasoned real estate investor Jim Brickman during the Great Recession.

Together, they established a real estate equity fund, JBGL, which focused on acquiring undervalued land and supporting distressed homebuilders. The housing market rebounded around 2013, leading JBGL to go public in 2014 as Green Brick.

Unlike many competitors, Green Brick owns a substantial portion of the land it develops, controlling over 37,800 lots by the end of 2024. The company primarily operates in growing housing markets like Texas, Florida, and Georgia.

Recent performance has been robust, with record closings of 1,019 units in Q4. Since 2020, earnings have soared at a compound annual growth rate of 39%, consistently yielding high returns on assets and equity. The stock has surged over 700% in the past five years, trading at just 7 times forward earnings.

While the housing market faces uncertainties—especially with potential tariff impacts—Green Brick’s unique position and adept management suggest continued growth.

CONSOL Energy — 7.7% of Portfolio

Based in Pennsylvania, CONSOL Energy is a leading coal producer with several productive mines in the Northern Appalachian Basin. Its key asset, the Pennsylvania Mining Complex, encompasses three large underground mines capable of producing around 28.5 million tons of coal annually.

Recently, CONSOL announced a merger with Arch Resources to form Core Natural Resources (CNR), which concluded earlier this year. This new entity will manage 11 mines producing both metallurgical and thermal coal.

Notably, over 10% of CNR’s revenue comes from international customers in China and India. However, recent tariffs imposed by China on coal imports have triggered a significant sell-off, with shares down nearly 32% this year.

Despite facing long-term challenges due to tariffs and a global shift away from coal, the Trump administration’s stance may provide some stability for the industry. CNR has remained profitable over the past three years, trading at only 8 times forward earnings.

Brighthouse Financial — 7% of Portfolio

Brighthouse Financial (BHF), a major player in the annuity and life insurance sectors, has demonstrated resilience this year, with its stock up about 9%. Einhorn may view this company as a potential acquisition target.

In 2024, Brighthouse struggled to achieve a risk-based capital (RBC) ratio within the 400% to 450% range, the threshold most investors consider acceptable. This ratio assesses the capital needed for an insurer to manage its risks.

Recent reports indicated that management was exploring options to sell the business or parts of it. Analysts at Raymond James upgraded Brighthouse to a strong buy, suggesting that a sale could unlock significant shareholder value. They also recommended that Brighthouse raise capital to enhance cash-flow capabilities, potentially appealing to prospective buyers.

While the future hinges on acquisition possibilities, this strategy carries risks but could yield substantial rewards if successful. Brighthouse may be a smaller position worth considering without a heavy investment.

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