Einhorn Unfazed By Market Rally

Nov 4 2013 | 11:47am ET

Greenlight Capital has boosted its short bets even as stocks continue to soar.

The New York-based hedge fund's founder, David Einhorn, said the firm's short book had grown against its long in a conference call for its reinsurance arm, Greenlight Capital Re. Einhorn added to his shorts in spite of the fact that they've cost him this year.

"As the market continued its relentless climb, we've become more conservatively positioned," he said.

Greenlight is up about 12% this year, thanks to its long bets on Apple  Inc. and other companies. Its short book has cut into that return, he admitted.

"The losses in the short book were broad-based, and we continue to be short most of the companies that contributed to the loss," Einhorn said. "These include a variety of companies which tend to have conventional valuations, rather than speculative-story stocks that have caused excessive pain for other short sellers."


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note