Friday, 22 August 2014
Last updated 9 hours ago
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.
Aug 4 2014 | 7:42am ET
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The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note