Saturday, 23 May 2015
Last updated 15 hours ago
Jul 29 2013 | 11:21am ET
Greenlight Capital has closed its highly-profitable short bet against retailer J.C. Penney Co. while decrying a lowering of expectations on corporate earnings.
The J.C. Penney short was New York-based Greenlight's most profitable last year. But the firm said it had ended its bet against the company, as well as one against fellow retailer Dick's Sporting Goods.
Greenlight returned 1.2% in the second quarter and is up 7.1% on the year.
The hedge fund also closed several long bets, including investments in CBS Corp. and Microsoft, and reduced others, including Seagate Technologies. But it reaffirmed its confidence in General Motors and held on to its stake in Apple Inc., despite heavy losses for the latter recently.
More generally, Greenlight wrote that companies are no longer seeking to "beat estimates and raise guidance" to boost share prices. Instead, lowering guidance to ensure beating estimates has become the norm.
"Lowering the bar seems to be treated as bullish because it increases the likelihood of future earnings beats," it wrote.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…