Greenlight's Main Fund Down 28% This Year After November Drop
Greenlight's Main Fund Down 28% This Year After November Drop
(Bloomberg) -- Greenlight Capital, the hedge fund led by David Einhorn, fell 3.5 percent in November, extending this year’s losses.
Greenlight’s main fund is headed toward its worst annual drop on record, declining almost 28 percent in the first 11 months of 2018, according to an investor update viewed by Bloomberg.
Einhorn, like several high-profile value investors, has been struggling. This year he trails the stock market and peers: The S&P 500 Index has returned 5.1 percent in 2018 with dividends reinvested, while the HFRX Global Hedge Fund Index, an early indicator of industry performance, dropped 5.1 percent through Nov. 28.
The money manager has been striving to rebound since 2015, when his main fund lost more than 20 percent. Green Brick Partners Inc., among Greenlight’s largest U.S. holdings at the end of the third quarter, saw a double-digit decline in November amid a slide for homebuilders. AerCap Holdings NV, Brighthouse Financial Inc. and General Motors Co., also among its larger positions as of Sept. 30, all posted gains.
Greenlight has been short Tesla Inc. and Einhorn has been a prominent critic of the electric-car maker, which climbed 3.9 percent in November. The firm also has wagered against a so-called bubble basket of companies such as Amazon.com Inc. The online retail giant rebounded from October’s losses, rising 5.8 percent in November.
A spokesman for the New York-based firm declined to comment.
To contact the reporters on this story: Krista Gmelich in New York at kgmelich1@bloomberg.net;Simone Foxman in New York at sfoxman4@bloomberg.net
To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Josh Friedman, Dan Reichl
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