Einhorn's Greenlight Capital Files 13D on Civeo ~ market folly

Friday, October 10, 2014

Einhorn's Greenlight Capital Files 13D on Civeo

David Einhorn's hedge fund firm Greenlight Capital has filed a 13D on shares of Civeo (CVEO).  Per the filing, they now own 9.99% of the company with over 10.65 million shares.

This means they've boosted their holdings by over 4.5 million shares since the end of the second quarter.  The filing was made due to activity on September 30th but they've continued to buy into October.  They've purchased shares in the $12.37 range recently.

Greenlight originally received shares of CVEO in the spin-off from Oil States International (OIS), which they also own.

Einhorn's 13D indicates that they've had conversations with the board and made the following suggestions: the company should take on leverage to make its capital structure more appropriate for a real estate company, the company should aggressively return capital to shareholders via dividends, and the company should replace its CEO.

For more from this hedge fund, check out Einhorn's recent comments at the Great Investors' Best Ideas conference this week.

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