David Einhorn’s Greenlight Capital this week announced an increase in its stake in agricultural equipment maker CNH Industrial and increased its bets on Peloton Interactive and gold in the third quarter. The hedge fund, founded by Einhorn in 1996, disclosed in its latest regulatory filing that it bought about $79 million in CNH shares in the most recent quarter. On Wednesday, Einhorn told CNBC that the tractor and harvest equipment maker is an overlooked value stock as the agricultural investment cycle nears its bottom. UK-based CNH, the parent company of Case and New Holland farm businesses, also pays a 4.4% yield. “Absolutely no one cares about this right now because it’s cheap and the news is not going to be good for some time to come,” Einhorn said earlier at the CNBC Delivering Alpha conference in New York this week. “This year, farm equipment prices are probably 20% below average. … Sometime in three or four years, they could be 20% higher.” Einhorn also increased his stake in Peloton by about 40%, making it His stake in the company amounts to about $45 million. Einhorn, who pitched Peloton at the Robinhood Investor Conference in October, said the stock of the fitness equipment company that has thrived during the Covid-19 pandemic is now significantly undervalued. Peloton is up more than 29% year to date, but is down nearly 13% this week. The 55-year-old Cornell University graduate has been cautious about the market this year, calling it the most expensive he has seen since he began his career. This led him to buy mid-sized stakes in several value companies and hold a larger position in gold. Einhorn increased his stake in SPDR Gold Trust by 3.1% in the most recent quarter, bringing it to $51 million. Einhorn also increased his holdings in Capri Holdings, Penn Entertainment, HP and Roivant Sciences in the third quarter, while reducing his holdings in Graphic Packaging, Tenet Healthcare and Viatris. He sold all his positions at health care companies Sotera and Talis Biomedical. Greenlight’s hedge fund returned just 9% (net of fees and expenses) in 2024 through the end of the third quarter, significantly underperforming the S&P 500 due to the fund’s limited exposure to the “big seven” technology stocks, And those stocks have helped drive a surge in share prices back this year.
