Einhorn's Greenlight Capital Down 5.6% in August As Turmoil Roils Returns

Sep 1 2015 | 5:07pm ET

David Einhorn’s Greenlight Capital has disclosed significant losses due to the market turmoil in August.

The nearly $11 billion fund was already down 9% coming into the month, according to data provider HFR. It lost another 5.3% during August, according to a New York Times report citing unnamed sources familiar with the matter. The result brings Einhorn’s fund losses for the year to 13.8%. 

Einhorn, who made his name as a stockpicker and short specialist who presciently predicted the eventual demise of Lehman Brothers, has been hurt by bets on major positions in Micron Technology, General Motors, SunEdison and gold, according to regulatory filings. His short positions in the oil sector, conversely, have helped somewhat soften the blows. 

Einhorn joins several other prominent hedge fund managers who were bloodied during the month. Leon Cooperman’s Omega Advisors fund revealed a loss of 11% for the month on last week, Bill Ackman’s publicly traded Pershing Square Holdings gains for the year have evaporated due to August losses, Ray Dalio’s Bridgewater Associates Pure Alpha fund was down 4.77 % as of August 21, and the flagship fund at Dan Loeb’s Third Point lost 5.1% for the month. 

Greenlight, which Einhorn founded in 1996 with $1 million in initial capital sourced from family and friends, has booked annualized returns of approximately 9% since inception. It’s only down year – so far – came in 2008 amid the financial crisis. 


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