<div id="readability-page-1">It was a volatile first quarter for the broader benchmark S&amp;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&amp;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. 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. <h2>Green Brick Partners -- 28% of portfolio</h2> By far the fund's largest position, Einhorn actually helped found the homebuilder Green Brick Partners (GRBK -0.79%). 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. <h2>CONSOL Energy -- 7.7% of portfolio</h2> CONSOL Energy is a Pennsylvania-based coal producer that owns several very productive mining operations in the Northern Appalachian Basin. The company's most prominent mining operation is the Pennsylvania Mining Complex, which comprises three large underground mines that can produce roughly 28.5 million tons of coal per year. Last year, CONSOL and Arch Resources announced the two companies would conduct a merger of equals to form Core Natural Resources (CNR -1.56%), a deal that closed earlier this year. Arch also runs mines that produce coal for the steel industry. The combined entity will own 11 mines, ranging from metallurgical to high-calorific-value thermal coals. Metallurgical coal is used to make steel, while thermal coal is used to create electricity. Core Natural Resources does a good deal of business outside the U.S. In 2024, the company generated over 10% of revenue from customers in both China and India. The tariff saga between the U.S. and China has likely contributed to the stock's intense sell-off this year, as China has imposed 15% tariffs on coal imports into the country. Shares are down close to 32% this year. Given tariff concerns and the ongoing shift away from coal, the company certainly faces long-term headwinds that may keep investors away. But the Trump administration is undoubtedly not going to prioritize initiatives to combat climate change, and it's still unclear whether the world can completely abandon coal-powered energy altogether. Core Natural Resources has been consistently profitable over the last three years and trades at only 8 times forward earnings. <h2>Brighthouse Financial -- 7% of portfolio</h2> The large annuity and life insurance company Brighthouse Financial (BHF 1.63%) has held up well this year, with its stock up by about 9%. Einhorn may be thinking that this is a potential acquisition target. In 2024, Brighthouse struggled to get its risk-based capital (RBC) ratio into the 400% to 450% range, which is considered the minimum most investors like to see in the industry. The RBC ratio essentially evaluates the theoretical capital needed to take on the risk of an insurer's business. Earlier this year, media reports began to surface, suggesting management was looking to sell the business, or parts of it. In mid-March, analysts at Raymond James upgraded Brighthouse to a strong buy on the merits that a sale or partial sale through creative alternatives could unlock significant shareholder value. In the meantime, Raymond James analysts thought Brighthouse should raise capital to boost cash-flow-generating capabilities, which could demonstrate some of its strength to potential buyers. Obviously, a lot of the thesis at this point hinges on some kind of acquisition. This can always be a risky strategy, but it can also generate significant gains if successful. Brighthouse is probably one of those positions you can take a smaller position in but don't need to invest too heavily in. </div>

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Billionaire David Einhorn's hedge fund, Greenlight Capital (now DME Capital Management), outperformed the S&P 500 in Q1 2025, generating an 8.2% return while the index fell 4.6%. Einhorn's top holdings include Green Brick Partners (28% of the portfolio), CONSOL Energy (7.7%), and Brighthouse Financial (7%). Green Brick has shown strong growth, while CONSOL faces challenges from tariffs and coal market shifts. Brighthouse is seen as a potential acquisition target, with analysts upgrading its stock amid speculation of a sale.

Billionaire David Einhorn's Hedge Fund Crushed the Stock Market in the First Quarter of 2025. Here Are His Top 3 Holdings.