Einhorn's Greenlight Gains 0.7% in October, Trimming 2015 Drop

  • Main hedge fund down 16% in 2015, his worst year since 2008
  • Manager increased long exposure to market in third quarter

Greenlight Capital, the investment firm led by David Einhorn, gained 0.7 percent in its main hedge fund in October as U.S. stocks recouped two months of losses.

The performance pares Greenlight’s 2015 loss to 16 percent, according to an e-mail sent to clients that was obtained by Bloomberg.

Jonathan Gasthalter, a spokesman for New York-based Greenlight with Sard Verbinnen & Co., didn’t immediately respond to a request for comment on the results.

Einhorn is struggling to bounce back from his worst year since 2008, when his main hedge fund lost 23 percent at the height of the global financial crisis. Unless Greenlight can recover in the next two months, 2015 will mark only its second year of losses since it started trading in 1996. In a letter sent to clients on Oct. 21, the firm said the proportion of its portfolio betting on rising stock prices had increased moderately during the third quarter after the equity market declined.

Despite the gains, the main Greenlight fund, which primarily trades stocks, is trailing most of its peers and its benchmark this year. The Standard & Poor’s 500 Index, including reinvested dividends, rose 8.4 percent in October and is up 2.7 percent in 2015. The average hedge fund gained 1.5 percent this month through Oct. 29, according to data compiled by Chicago-based data provider Hedge Fund Research Inc., and has fallen 1.6 percent this year.

Apple, GM

Shares of Apple Inc., General Motors Co. and Resona Holdings Inc., as well as gold -- four of the firm’s five biggest disclosed long positions at end of the third quarter -- all rose in October.

Consol Energy Inc., also one of Greenlight’s largest holdings, fell 32 percent this month, extending its 2015 decline to 80 percent.

“We’re optimistic that we should get some recovery from our beaten-down long portfolio," Einhorn said on an Oct. 29 conference call discussing results at Greenlight Capital Re Ltd., the Cayman Islands-based reinsurer where he is chairman.

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