David Einhorn Favoring Retail Over Tech

In the second quarter, David Einhorn’s Greenlight Capital sold tech stocks in order to buy retail shares, according to a public filing of its holdings as reported in a recent article in Barron’s. The article notes that the filing is merely a snapshot of the fund’s holdings at a moment in time and is therefore “an imperfect picture of Einhorn and Greenlight’s investing thesis.” But the fund’s second-quarter purchases of Gap, Best Buy, and TJX Companies,… Read More

Investors Flee from a Hedge Fund Star

After more than ten years of impressive returns, David Einhorn’s Greenlight Capital Inc. has seen assets under management drop from a reported $12 billion in 2014 to about $5.5 billion, and investors are losing patience with poor performance. This according to an article in The Wall Street Journal. After discussions with more than a dozen current and former investors and employees of Greenlight, WSJ reports that “some frustrated clients have pulled out of Greenlight over… Read More

The Tarnishing of David Einhorn

A recent article in Institutional Investor chronicles the fall-from-grace of hedge fund legend David Einhorn, billionaire founder of Greenlight Capital. “It takes a certain amount of self-confidence to think you’re smarter than everyone else,” the article says. “That’s especially the case when the markets are telling you something else—as has been the case for a decade with [David] Einhorn.” It describes Greenlight’s 14.9% loss through April– compared to a 0.4% loss for the S&P 500—as… Read More

Einhorn Says Value Investing Will See Comeback

Value investing is in the doldrums, but billionaire fund manager David Einhorn says that eventually things will turn around. This according to a recent CNBC interview. Einhorn argues that the last time value saw a turnaround– after the dot-com bubble in 1999 when, he said, “everyone was talking about eyeballs as the new paradigm for investing”—it ended badly for momentum investors. He believes that value investing will rebound: “When it reverts,” he adds, “it tends to… Read More

Hedge Fund Heavy Hitters Offer Range of Outlooks & Predictions

As the hedge fund industry continues to struggle to justify high fees and awful returns, some of this year’s speakers at the Sohn Investment Conference addressed how the largest funds are bracing for what’s ahead. The conference, an event held annually in New York and touted as “the premier investment event”, brings together Wall Street’s elite to exchange ideas and share insights (while raising money for pediatric cancer research). Forbe’s offered an overview of the… Read More

How Einhorn Does It

David Einhorn has become one of the most closely followed hedge fund managers in the world. And in a recent interview with Bloomberg, Columbia Business School Professor Fabio Savoldelli examines what makes Einhorn so successful. Savoldelli says Einhorn (who he says has produced 20% compound annualized returns since 1996) has an “incredibly disciplined” process. He does not act in an index-relative manner as many managers do, but instead analyzes every position as to whether it will… Read More

Einhorn Says Fed Should Raise Rates

Hedge fund guru David Einhorn says the Federal Reserve’s near-zero interest rate policy is counterproductive, and says it should raise rates to help the economy. Einhorn tells CNBC that low rates “deprives savers of reasonable incomes”, and cuts down on consumption. He also says it drives food and oil prices upward and decreases standards of living. He thinks the Fed should begin to raise rates to the 2% to 3% range. Einhorn also discusses some… Read More

Einhorn Ups Bullish Bets, But Warns on Inflation

Hedge fund guru David Einhorn says he increased his bullish bets last month, but remains concerned about several issues, including the Federal Reserve’s low-interest rate policy. In a conference call with Greenlight Capital Re investors, Einhorn said that he increased his bullish positions thanks to better-than-expected corporate earnings results, Bloomberg reports. But, he added, “This enthusiasm is tempered by our continued concern about the structural sovereign-debt problems in Europe and Japan, a slowing Chinese economy,… Read More

Einhorn Likes Gold Miners, CBS, GM

Hedge fund guru David Einhorn remains high on gold, and is now making a bullish bet on gold miners as well. “During the quarter we exchanged a portion of our gold position for additional investment in the Market Vectors Gold Miners ETF,” states the recently released third-quarter letter from Greenlight Capital, Einhorn’s firm (a tip of the cap to Insider Monkey for posting the letter, which is available in PDF form here). “While the price… Read More