Shift from Momentum Proves Boon or Einhorn’s Greenlight Capital

David Einhorn’s Greenlight Capital hedge funds gained 8.4% in September, bringing average weighted returns for the year to 24%, the company reported. This according to a recent article in Bloomberg. “Einhorn, who has remained committed to his strategy of buying beaten-down stocks while shorting growth companies, is in the midst of a resurgence following his worst year on record,”‘ the article  reports, adding that in 2018 his firm lost 34% in its main fund. That… Read More

Hedge Funds Struggling in the Insurance Game Present Value Play

When Third Point’s Daniel Loeb and Greenlight Capital’s David Einhorn took the plunge into what a recent Barron’s article describes as the “warm waters of the reinsurance business”, the article explains, they “sought to emulate Berkshire Hathaway, where Warren Buffett has successfully combined insurance with sizable equity investments and earned outsize returns on both.” The idea was to attract investors with a tax-advantaged alternative to investing in the hedge funds themselves, while providing greater liquidity… Read More

Money Managers to Track in 2019

An article in The Wall Street Journal quips, “The people running your money have a lot to prove in 2019,” arguing that hedge fund managers will have to show that they’re “worth their high fees.” It also notes that, on the passive investment side, a “price war is afoot.” The article outlines a list of money managers to watch in the coming year: David Einhorn: Although the Greenlight Capital president had another rough year in… Read More

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