Einhorn’s Greenlight Fund Flat in March, Halting ’16 Rebound

  • Firm is seeking to bounce back from 2015 loss of more than 20%
  • Average hedge fund is down this year amid stock-market swings

David Einhorn’s main hedge fund was unchanged in March, leaving it up 3.3 percent year to date, his firm, Greenlight Capital, told investors in an e-mail obtained by Bloomberg.

The performance ends three straight months of gains for Einhorn. The fund had been making money since December, despite a stiff decline and dramatic rebound in stocks that had caught other managers wrong-footed.

The Greenlight hedge fund is still beating peers this year as it seeks to rebound from a dismal 2015. The average hedge fund manager lost 1.9 percent year-to-date through March 30, according to preliminary data compiled by Hedge Fund Research Inc. The Standard & Poor’s 500 Total Return Index, which includes reinvested dividends, rose 1.4 percent in the first quarter.

Jonathan Gasthalter, a spokesman for Greenlight at Sard Verbinnen & Co., declined to comment on Einhorn’s performance.

SunEdison Slump

Greenlight is trying to recover from losses of 20.4 percent in its main hedge fund last year, driven by declines of more than 60 percent in shares of Consol Energy Inc., Micron Technology Inc. and SunEdison Inc. The firm’s assets dropped by $3.2 billion, to about $8.6 billion at the start of this year.

SunEdison fell 73 percent in March to $0.54 a share at the close of trading Thursday as the company teeters on the edge of bankruptcy protection. Greenlight, which won a board seat at the clean-energy company in January, disclosed that it owned a stake of about 6.8 percent at the time. The firm disclosed in a filing Thursday that it had received a subpoena from the U.S. Department of Justice seeking information in connection with a deal.

Einhorn said in a Feb. 23 conference call for Cayman Islands-based reinsurer Greenlight Capital Re Ltd. that his fund’s biggest winner in 2016 had been a wager against what he’s referred to as “a bubble basket” of overpriced momentum technology stocks. The Nasdaq Composite Index reversed much of its losses this year in March, rising 6.8 percent.

All five of Greenlight’s largest disclosed stock positions as of the end of 2015 rose in March. Apple Inc., the firm’s biggest holding as of Dec. 31, climbed 13 percent.

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