Einhorn 13F reveals Brighthouse arbitrage and PG&E AI trade

David Einhorn’s latest 13F filing highlights a dual strategy of capturing guaranteed merger premiums and positioning for structural power demand. Greenlight Capital’s portfolio features Brighthouse Financial as a pure arbitrage play and PG&E as a leveraged bet on California’s data center expansion.

Brighthouse trades at $65.64 as of July 17, 2026, representing a 6.6% discount to a signed $70 all-cash acquisition by Aquarian Capital. The $4.1 billion transaction is slated to close in 2026 pending regulatory approvals. Underpinning the target is an annuity engine that generated $324 million in adjusted earnings on $2.18 billion in sales during the first quarter, driving total adjusted EPS to $4.15.

The persistent $4.36 gross spread suggests broader market skepticism regarding the deal's execution timeline. Einhorn is betting against that doubt, a conviction seemingly shared by company insiders who have logged 32 recent transactions with a net buying direction. For market professionals, the trade offers a defined yield that hinges almost entirely on regulatory clearance rather than operational risk.

PG&E represents a different allocation strategy, targeting the physical infrastructure required for artificial intelligence. The utility’s data center pipeline has expanded to 4.6 gigawatts in final engineering, up from 3.6 GW, with more than 10 GW in pre-application interest.

To support this demand, PG&E is executing a $73 billion five-year capital plan expected to push its rate base to roughly $106 billion by 2030. The financial profile is stabilizing, with Q1 non-GAAP core EPS rising to $0.43 from $0.33 a year prior. Furthermore, wildfire-related non-core charges collapsed to $3 million from $40 million year-over-year, reducing a historical overhang on the stock.

Management reaffirmed FY2026 non-GAAP core EPS guidance of $1.64 to $1.66 and guided for 9% or greater annual EPS growth from 2027 through 2030. Crucially, the company plans no common equity issuance through 2030, protecting shareholders from dilution as it funds its capital program. The consensus Wall Street target sits at $22.84, backed by 14 buy or strong buy ratings, four holds, and zero sells.

Together, the two positions illustrate a disciplined approach to the current market. Einhorn is locking in a defined downside in the Brighthouse deal while exposing his portfolio to the multi-year capital expenditure cycle required to power AI.