Greenlight Takes Stake in Calpine, Reduces Consol Energy at Loss

  • David Einhorn’s firm buys $83.5 million stake in Calpine
  • Greenlight also purchases shares of Rite Aid, Perrigo

Greenlight Capital, the hedge fund firm led by David Einhorn, is making a new energy play, taking a stake in independent power producer Calpine Corp. during the second quarter.

Einhorn’s firm bought 5.66 million shares of the company worth $83.49 million as of June 30, according to a regulatory filing Monday. Calpine produces power from natural gas and renewables.

Greenlight is making the new energy wager even after it sold 26 percent of its investment in Consol Energy Inc. during the quarter at a loss. It had first taken the stake in Consol, a coal and natural gas producer, at an average price of $38.88, according to a letter sent to investors in November 2014. At the end of last quarter, the shares were selling for just over $16. Greenlight still owned 22 million shares worth $19.7 million as of June 30. As of Aug. 5, a filing showed Greenlight had a stake equal to 18.1 million shares.

The hedge fund firm also took a stake in drugstore chain Rite Aid Corp. worth $77.4 million and bought shares of healthcare supplier Perrigo Co. valued at $47.9 million at the end of the second quarter.

Money managers who oversee more than $100 million in U.S. equities must file a Form 13F within 45 days of the end of each quarter to list their holdings in stocks that trade on U.S. exchanges, as well as options and convertible debt. The filings don’t show non-U.S. traded securities or wagers against stocks.

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