Einhorn's Greenlight Deepens Rout With 3.6% September Dropby
Firm's main hedge fund is now down about 17% year-to-date
Global market slide is also hurting peers including Fortress
Greenlight Capital, the investment firm led by David Einhorn, fell 3.6 percent in its main hedge fund in September as weakness in corporate profits and emerging economies sent global markets into deeper decline.
The loss, disclosed in an e-mail to investors that was obtained by Bloomberg, extended this year’s slump for Einhorn, whose fund is down 17 percent in 2015.
Unless Greenlight can rebound in the fourth quarter, this will mark the second year its hedge fund has lost money since Einhorn co-founded the New York-based firm in 1996. The fund’s last yearly loss came in 2008, when it fell 23 percent.
Jonathan Gasthalter, a spokesman for Greenlight at Sard Verbinnen & Co., declined to comment on the performance, which was earlier reported by Reuters.
The market environment has become “acutely unfavorable” to Einhorn’s style of value investing, the money manager said on an August conference call discussing results at reinsurer Greenlight Capital Re Ltd., where he is chairman. SunEdison Inc., Micron Technology Inc. and Consol Energy Inc., three of the hedge fund’s largest equity holdings as of June 30, are now down from 57 percent to 71 percent in 2015. Apple Inc., its top stock holding at midyear, is essentially flat.
With global stock markets down 6.6 percent through this year’s first three quarters, including reinvested dividends, some hedge funds have struggled to post gains.
Fortress Investment Group LLC’s macro fund, run by Michael Novogratz, lost 4.3 percent in September through the 25th of the month, extending losses after a management shakeup, according to an investor. The decline brought that fund’s year-to-date slide to about 17 percent.