Einhorn’s Main Greenlight Capital Hedge Fund Loses 1.9% in May

Greenlight Capital, the investment firm led by David Einhorn, lost 1.9 percent in its main hedge fund in May even as stocks climbed.

The decline reduced the fund’s return in 2016 to 1.1 percent, according to an e-mail sent to clients that was obtained by Bloomberg. The S&P 500 Index, including reinvested dividends, returned 3.6 percent in the first five months of the year.

Jonathan Gasthalter, an external spokesman for the New York-based firm, didn’t immediately respond to a request for comment after regular business hours.

Einhorn’s firm has made money in 2016 while the industry struggles. An index of hedge fund returns pared losses in May, gaining 0.4 percent and leaving the average fund down 1 percent this year through May 27, according to preliminary data from Hedge Fund Research Inc.

Losses at some of the industry’s best-known firms including Larry Robbins’s Glenview Capital Management and Paul Tudor Jones’s Tudor Investment Corp. are adding fuel to debates about whether investors should rely on hedge funds to produce alpha, or profits unrelated to the direction of broader markets.

Greenlight is trying to rebound from a plunge of more than 20 percent in 2015, its worst underperformance since the firm’s inception in 1996.