Greenlight Down 5% In First Half After Tough Q2

Jul 8 2011 | 12:38pm ET

A "lack of winners" pushed Greenlight Capital down by more than 2% in the second quarter, the New York-based hedge fund told clients in its quarterly letter this week.

The firm's eponymous fund is now down 5% on the year after dropping 2.5% between April and June. Greenlight Capital Qualified is also down 5% following a 2.1% quarterly loss, and the firm's offshore fund is off 5.3% on the year after dropping 2.2% on the quarter.

Greenlight founder David Einhorn noted that the "U.S. economy continued to soften during the quarter," and noted that "the main problem with our performance was a lack of winners in the quarter."

Einhorn noted that Greenlight dumped its stake in Yahoo! just a few months after the company's Chinese CEO, Jack Ma, "hived-off a valuable subsidiary into a corporation that he personally controls."

"From there, the finger pointing started going in every direction," Einhorn wrote. "That wasn't what we signed up for for."

Greenlight took a "modest loss" on its short-lived Yahoo! investment.

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