GRBK - Einhorn's Greenlight defends Green Brick Brighthouse Financial in Q1 letter

Green Brick Partner (NYSE:GRBK) stock's 35% decline during Q1 accounted for more than Greenlight Capital's loss in its long equities portfolio. The long portfolio lost 7% during the quarter, according to the fund's Q1 letter seen by Seeking Alpha. For the quarter, David Einhorn's fund, which also takes short positions and invests in index hedges, climbed 4.4% during a period when the S&P 500 dropped 4.6%. Greenlight isn't abandoning Green Brick (GRBK), though. The letter blames the stock's decline on investors' fears that the housing market is due for a crash. The fund disagrees, pointing to the stark differences between the housing market in 2006 and its current situation. Before the financial crisis, homebuilders overbuilt and were highly levered and the new construction was financed with "very loose underwriting standards," the letter said. By contrast, there's still a housing shortage, construction is being constrained by material and labor shortages, and

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Einhorn's Greenlight defends Green Brick, Brighthouse Financial in Q1 letter