Greenlight Capital said in its quarterly letter that it initiated new holdings in three public companies during the first quarter, while trimming or exiting others. The fund reported a net return of 6.5% for the quarter, after fees and expenses, compared with a 4.4% decline in the S&P 500 index.
Among the new stakes, Greenlight established a medium-sized holding in Versant Media (NYSE: VSNT). Versant was recently spun off from Comcast and owns channels including MS Now, NBC and USA Network. The fund highlighted that more than 60% of Versant’s programming consists of live news and event-driven content, which Greenlight views as relatively resilient to subscriber losses amid continued cord-cutting in legacy cable businesses.
Greenlight also opened a small position in Crocs Inc. (NASDAQ: CROX), buying shares at $83.49 each. The hedge fund said concerns about a slowdown in U.S. sales last year were "overblown." It noted that Crocs has allocated the majority of its free cash flow to share repurchases, and Greenlight expects the company to buy back in excess of 10% of its outstanding shares annually going forward.
A new small position in SLM Corp. (NASDAQ: SLM) was initiated based on what Greenlight described as an opportunity for significant expansion in graduate student lending. The firm cited the potential for growth as the federal government reduces its role in the market following provisions contained in the One Big Beautiful Bill Act.
Concurrently, Greenlight exited positions in Kyndryl (NYSE: KD), Global Payments (NYSE: GPN) and Warner Bros. Discovery (NASDAQ: WBD). The fund indicated that it believes the auction process for Warner Bros. Discovery has reached a resolution.
The letter also identified the quarter’s notable winners and losers within Greenlight’s portfolio. Significant contributors included gold, Acadia Healthcare (NASDAQ: ACHC), DHT Holdings (NYSE: DHT) and Core Natural Resources (NYSE: CNR). The largest detractors were SOFR futures, Kyndryl and Graphic Packaging (NYSE: GPK).
Context and positioning
Greenlight’s new media exposure through Versant reflects a preference for programming tied to live events and news, which the firm believes may be less vulnerable to subscriber declines than other entertainment formats. Its stake in Crocs reflects confidence in the company’s capital allocation via buybacks, while the SLM position is premised on expected market opening for private lenders to graduate students as federal involvement diminishes under the referenced legislation.
Portfolio moves
- Initiated medium-sized position: Versant Media (VSNT).
- Initiated small positions: Crocs (CROX) at $83.49 per share, and SLM (SLM).
- Exited positions: Kyndryl (KD), Global Payments (GPN), Warner Bros. Discovery (WBD).
The letter lists winners and losers by contribution to performance, with several healthcare, shipping and natural resources names among the quarter’s gains and interest-rate linked instruments and select technology and packaging names among the declines.