David Einhorn first quarter filings show a reduced stake in Green Brick Partners (GRBK), a homebuilding and land development company headquartered in Plano, Texas.
But last month, in June, in the wake of the Fed’s decision to forgo an increase in its rate hike, the first time since it hiked its key rate to dampen inflation more than 14 months ago, David Einhorn revealed he boosted his position in Green Brick by 4.98%.
The homebuilder has projects in Texas, Georgia, Colorado and Florida and owns a portfolio of brands such as Normandy Homes, The Providence Group, Trophy Signature Homes and Challenger Homes.


“David Einhorn revealed he boosted his position in Green Brick by 4.98%”
WEALTH TRAINING COMPANY
David Einhorn first quarter filings, which indicate reduced stock holding in a home builder, then a subsequent increase in June, is an anomaly to the view that real estate is crashing
Green Brick’s business is divided into three segments, the largest of which, Builder Operations Central, contributed 67.2% of the total revenue in 2022.
Despite macro headwinds from higher interest rates, bearing in mind the cost of servicing a variable mortgage more than doubled in the last 14 months as well as cost of living increases, the stock performance has remained solid over the past several years as demand for new housing has remained relatively stable.
Green Brick has a $2.42 billion market cap; its shares were trading around $53.24 recently with a price-earnings ratio of 8.59, a price-book ratio of 2.28 and a price-sales ratio of 1.38.
Despite the recent headwinds associated with higher interest rates and inflation, the stock has had a strong performance over the past several years as demand for new housing has remained relatively stable. This stock returned over 400% over the past five years, more than 300% over the past three years and 142% over the past year. Year to date, the stock is up 107.58%.

“Green Brick has a $2.42 billion market cap”
WEALTH TRAINING COMPANY
For the three months ended March 31, the company posted revenue of $452 million and net income of $64 million, or earnings of $1.37 per share. All three figures were up from the prior-year quarter.
In a statement, co-founder and CEO Jim Brickman commented on the “best first-quarter results in our history.”
“More importantly, sales momentum during the first quarter was exceptionally strong,” he said. “Despite a stormy housing environment, net sales accelerated across all our builder brands and were up 78% year-over-year and 152% sequentially to 1,067 homes, the second-highest quarter in company history. Not only did we see strong demand for move-in ready homes, but we also experienced a resurgence of orders for build jobs and demand for homes in early construction stages.”
David Einhorn first quarter filings and subsequent stock homebuilder purchases suggest it would be unwise to tarnish the entire real estate market with the same brush.
Green Brick’s results indicate a disparity in the housing market, with some regions still performing well despite tighter credit conditions.
“National real estate market predictions for Texas foresee a slowdown, but not a crash” – Wealth Training Company
Texas, where the company has projects, has had some of the strongest housing appreciation rates in the country over the past decade
Elon Musk’s decision to relocate the company headquarters from California to Texas, one reason cited was a business-friendly low-tax environment. Texas does not impose an income tax on corporations, nor does it impose an individual state income tax.
Moreover, the Texas Governor’s decision to ban mandatory mask-wearing and vaccinations in 2021 indicates no overreaching government power.
So populations in high-taxed states with overreaching governors could be voting with their feet, migrating to low-tax regions that offer less regulation and constraints on businesses.
National real estate market predictions for Texas foresee a slowdown, but not a crash.
Meanwhile, in California, median sales prices have already fallen by 9.01% in April.
It will be interesting to see whether Green Brick’s results, expected to be released in August, for the second quarter continue to show robust demand for their homes.
“Tesla was Green Capital fund’s biggest loser in 2020 when the electric vehicle company’s stock soared more than 700% that year”
– Wealth Training Company
David Einhorn first quarter filings indicated that the guru invested 827,082 shares of the company on June 30, impacting the equity portfolio by 2.47%.
David Einhorn is an activist investor with his Greenlight Capital fund based in New York. Greenlight Capital’s investment strategy is to focus on companies with intrinsic value, and invest in those having the most potential to achieve consistent returns and protect capital irrespective of market conditions.
So David Einhorn Green Capital fund consists of long/ short positions, and his success has had its share of ebbs and flows. One of David Einhorn’s best-known short positions was Tesla TSLA in 2020.
But Tesla was Green Capital fund’s biggest loser in 2020 when the electric vehicle company’s stock soared more than 700% that year.
Two years later, in February 2022, David Einhorn revealed a new short bet against Tesla, despite losing big money shorting the stock in 2020.
Einhorn’s Greenlight Capital bought puts against 100,000 Tesla shares, according to a filing.
David Einhorn first quarter filings show Green Brick homebuilders being his largest holding, and he has been estimated to have made 359.19% profit on the long-held investment.
David Einhorn first quarter filings do not give a complete picture of the Greenlight Capital fund portfolio stock holding
13F filings only include its positions in US stocks and American depository receipts, so they exclude the fund’s foreign holdings of stocks.
Furthermore, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today.
But David Einhorn first quarter filings could still provide investors with a heads up.
Einhorn’s Greenlight Capital’s most recent purchase last month, a homebuilder land developer, highlights that the current real estate correction is not necessarily broad-based.