Business Context and Reporting Period
This Form 8-K is a Regulation FD disclosure filed by Greenlight Capital Re, Ltd. on January 22, 2019. The filing discloses information provided by David Einhorn, President of Greenlight Capital and Chairman of the Company's board, at a private investor conference. The disclosure pertains to investment returns and portfolio positions managed by DME Advisors, LP, the investment advisor to Solasglas Investments, LP, in which the Company's subsidiaries are limited partners.
Key Financial Metrics
- Investment Return: DME Advisors reported an estimated investment return of 7.3% net of fees and expenses for Solasglas for the period from January 1, 2019, through January 22, 2019.
- Assets Under Management: As of December 31, 2018, the Investment Portfolio managed by DME Advisors (including the general partner's assets in Solasglas) totaled $579 million.
- Revenue, Profit, and Cash Flow: The filing text does not provide clear values for the Company's consolidated revenue, net income, operating cash flow, or liquidity metrics.
- Debt and Margins: The filing text does not provide clear values for debt levels or profit margins.
Material Changes and Portfolio Positions
The filing details the largest positions (5% or larger) held in Greenlight Capital hedge funds as of December 31, 2018. While these represent the largest positions for the hedge funds, the filing notes they may not all be the largest for Solasglas. The disclosed positions include:
- Long Positions: AerCap Holdings NV, Brighthouse Financial Inc., CONSOL Coal Resources LP, Deutsche Pfandbriefbank AG, General Motors Company, gold, and Green Brick Partners Inc.
- Short Positions: Assured Guaranty Ltd. and Tesla Motors Inc.
The Company previously disclosed its largest five long positions as of December 31, 2018, as AerCap Holdings, Brighthouse Financial, General Motors, gold, and Green Brick Partners.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the inherent risks of the disclosed investment positions. The information is furnished under Regulation FD to ensure equal disclosure to all investors following a private conference. The filing explicitly states that the information is "furnished" and not "filed" for the purpose of Section 18 of the Exchange Act.
Investor Verification Checklist
- Verify the calculation methodology for the 7.3% estimated investment return by reviewing Note 3 on the Investment Returns section of the Company's website.
- Confirm the distinction between the largest positions in Greenlight Capital hedge funds versus the specific portfolio composition of Solasglas Investments, LP.
- Review the Company's most recent 10-K or 10-Q for consolidated financial statements, as this 8-K does not report revenue, profit, or cash flow.
- Monitor the status of the disclosed short positions (Assured Guaranty Ltd. and Tesla Motors Inc.) for potential volatility impacts.