David Einhorn’s Greenlight Capital Shrinks Stake in Consolby
Hedge fund has been the third-largest holder in Consol
Natural gas and coal producer’s shares tripled since January
Greenlight Capital Inc., the hedge fund run by David Einhorn, sold 7 million shares of Consol Energy Inc., shrinking its position in the coal and natural gas producer even as the company’s stock has rallied.
Greenlight sold the shares at $15.01 apiece on Wednesday, a filing with the Securities and Exchange Commission on Friday shows. The hedge fund owned 29.4 million shares of Consol as of May 12, making it the company’s third-largest shareholder, according to data compiled by Bloomberg.
Consol has spent recent years shifting its focus away from coal and toward natural gas. The Canonsburg, Pennsylvania-based company capitalized on the surging production of the heating and power-plant fuel in the surrounding Marcellus and Utica shale regions. The driller was one of Greenlight’s most profitable positions in the first quarter. Just a month ago, the hedge fund wrote in a letter that it had taken a bet that the price of natural gas will rise as energy drilling subsides.
Jonathan Gasthalter, a spokesman for Greenlight, declined to comment. Brian Aiello, a spokesman for Consol, also declined to comment.
Consol rose 55 cents, or 3.6 percent, in New York trading to close at $15.66 on Friday. The stock has more than tripled its value since falling on Jan. 15 to $4.99, its lowest level since the 1990s. Shares are gaining just as natural gas futures rebound, rallying 2.6 percent this year.