Einhorn Unfazed By Market Rally

Nov 4 2013 | 12:47pm 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

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of