Einhorn Expects Flat October Results After Challenging Few Days

  • ‘I don’t expect a result materially different than zero’
  • Einhorn had reversed a losing year with strong September gains

David Einhorn

Photographer: Christopher Goodney/Bloomberg

David Einhorn said his hedge fund’s results for October are likely to be flat after struggling in the last week.

The month “started off relatively strong for us but the last few days have been very challenging,” Einhorn said Tuesday on a conference call discussing results at Greenlight Capital Re Ltd., the reinsurer where he manages the investment portfolio. “I don’t expect a result that is materially different from zero for the month.”

Greenlight reversed what had been a losing year with strong gains in September, leaving its main hedge fund up 3.5 percent for the first three quarters of 2017, according to an email to clients seen by Bloomberg. The average stock-focused hedge fund rose 9.8 percent during the period, while the stock market returned 14.2 percent.

Einhorn also reaffirmed his commitment to value investing after he said some interpreted a letter sent last week to hedge fund clients as questioning the success of the strategy.

"Nothing could be further from the truth," Einhorn said. “We have been challenged the last few years as value investing has faced headwinds, however we believe this is simply a cyclical phenomenon and do not plan to change our strategy."

— With assistance by Hannah Levitt

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