Einhorn’s Fund-of-Funds Trounced S&P 500 Last Year With 26% Gain

David Einhorn’s Greenlight Masters fund-of-funds gained 26% last year, beating its goal and the S&P 500.

Masters, an arm of New York-based Greenlight Capital that invests in other hedge funds, benefited as most of those funds produced outsize gains, according to an investor letter obtained by Bloomberg.

“Overall, our managers did a terrific job,” the letter said. Fourteen generated positive performance, including 10 who returned more than 20% and two who gained above 75%. One manager returned over 250%.

The Masters fund’s goal is to produce annual returns of 10% to 15%. Meanwhile, the S&P 500 returned 18% in 2020, including dividends. The fund was also bolstered by preferential terms, such as fee discounts, that it received from some hedge funds. That contributed about 11% to Masters’s gross return, the letter said.

Anatole Partners, Helikon Investments and SQN Investors are among the hedge funds that Masters was invested in last year.

Einhorn’s own flagship hedge fund at Greenlight Capital gained 5.2% last year. It has struggled over the last several years in part because he has made losing bets against technology companies as the sector has rallied.

ValueWalk reported the returns earlier Tuesday.

©2021 Bloomberg L.P.

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