Greenlight Capital Said To Suffer $400M in Redemptions

Jul 14 2017 | 8:37pm ET

David Einhorn’s hedge fund manager Greenlight Capital reportedly suffered a rash of redemptions at the six-month market of 2017, as more than 15% of investors eligible to receive their money back elected to cash out. 

The redemptions totaled more than $400 million, according to a Reuters article citing the Wall Street Journal. Greenlight was down 2.3% for the year-to-date through the end of June, compared to a more than 8% climb in the S&P 500, as the famed stockpicker shorted a basket of momentum-driven tech stocks such as Elon Musk’s automaker Tesla, up 148% through the first half and still 51% higher than it was twelve months ago. Einhorn has publicly questioned how the firm’s market valuation squares with its lack of profitability.  

Greenlight’s main fund gained 9.4% in 2016 following a disastrous 2015 in which it lost 20%. Einhorn founded the firm in 1996 with $1 million in initial capital sourced from family and friends, and has booked annualized net returns of approximately 16% since inception. 

The firm’s flagship fund has reportedly been closed to new capital since late 2014, according to the Journal article. The company, which manages around $7 billion, is not concerned about investor withdrawals since no outside investor represents more than 2% of assets, the company said to Bloomberg on Friday.

In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...


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

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...


From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.