Greenlight Rides Longs To 7.9% Q2 Gain

Jul 28 2014 | 11:45am ET

Greenlight Capital put its money-losing first quarter behind it in the second, no thanks to its short book.

The New York hedge fund returned 7.9% from April to June, erasing its first-quarter loss and leaving it up 6.4% this year, the firm told investors. Greenlight credited its investments in Apple Inc. and Micron Technology for the gains.

The hedge fund said that its short bet against Questcor Pharmaceuticals was the “only significant” negative in its portfolio—and it was significant indeed, with the company’s shares surging 42% after Mallinckrodt announced plans to buy the company.

“Takeover season has returned and in a new twist, the buyers’ stock prices are also advancing in response to announced deals, enabling companies, including some of our shorts, to see gains as acquirers—even of other troubled companies,” Greenlight wrote.

The hedge fund accused Mallinckrodt of “blowing smoke” over Questcor’s problems, and said that the buyer would become an attractive short itself should the deal go through.

Greenlight said it was also shorting grocery chain Safeway and Martin Marietta Materials, while adding a long bet on semiconductor company Lam Research Corp.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

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

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...