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Russian (RU) Bram Berkowitz, The Motley Fool
Sun, Apr 27, 2025, 3:33 PM 5 min read
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It was a volatile first quarter for the broader benchmark S&P 500 index, which dealt with questions about high valuations and concerns about tariffs, although the first quarter, ending on March 31, came right before the big tariff-induced sell-off in April. In the first quarter, the S&P 500 fell roughly 4.6%.
Meanwhile, billionaire David Einhorn's hedge fund, Greenlight Capital, now known as DME Capital Management, generated an 8.2% return, according to Reuters. In a letter to shareholders viewed by Reuters, Einhorn said the fund turned bearish in February, concerned about the Trump administration's policies.
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Einhorn said Greenlight turned to gold in the quarter and also put several shorts on against undisclosed consumer companies. At the end of 2024, Einhorn's fund owned 36 stocks valued at close to $1.95 billion. Here were Greenlight's three largest holdings at the end of 2024.
By far the fund's largest position, Einhorn actually helped found the homebuilder Green Brick Partners (NYSE: GRBK). Einhorn partnered with the experienced real estate investor Jim Brickman during the Great Recession and formed a real estate equity fund called JBGL, which began acquiring cheap land and lending to experienced but distressed homebuilders. The housing market eventually recovered around 2013, and then JBGL went public through a reverse capitalization in 2014 and became Green Brick.
Unlike many homebuilders, Green Brick owns a lot of the land it builds on. At the end of 2024, the company owned or controlled over 37,800 lots. Green Brick largely operates in attractive housing markets in states with growing populations, such as Texas, Florida, and Georgia.
Performance has been quite strong in recent years. In the fourth quarter, Green Brick closed a record 1,019 units. Since 2020, earnings have grown at a compound annual growth rate of 39% and consistently generated high returns on assets and equity.
The stock is up over 700% in the last five years and still trades at only 7 times forward earnings. The housing market always faces uncertainty, and pending tariffs could cause certain costs and material prices to rise, potentially impacting the business. However, given the unique attributes of the company and its skilled management team, Green Brick can certainly keep moving higher over time and reclaim the highs seen in late 2024.
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