Tenet Healthcare (NYSE:THC) rose 1% after David Einhorn's Greenlight Capital took a medium-sized stake in the hospital operator.
Greenlight took the position in Q4, according to copy of Greenlight's Q4 investor letter from Tuesday viewed by Seeking Alpha. Greenlight acquired the shares from late December through the beginning of January for an average price of $48.61 a share.
"During 2022, the company lowered its guidance due to COVID and inflationary headwinds, resulting in its shares declining by more than 50% year-to-date through late October," according to the letter. "We believe this pullback offered an attractive opportunity to participate in the company’s transformation, as we expect its ASC growth to remain strong and its now smaller hospital portfolio to improve from both a cost and volume perspective."
The Greenlight Capital funds returned 36.6% in 2022, net of fees and expenses, compared to an 18.1% loss for the S&P 500 index, according to the Q4 letter.
The significant long winners in 2022 were Atlas Air Worldwide (AAWW), CONSOL Energy (CEIX), Siltstone Capital (private), Teck Resources (TECK) and Twitter (TWTR).
News of the Einhorn stake in Tenet (THC) was earlier reported by Bloomberg.
Tenet (THC) on Tuesday announced it plans to report Q4 results on Feb. 9.
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