David Einhorn may have called Lehman’s demise in 2008 and he may have crushed Bruce Berkowitz on St. Joe back in the early 2010’s, but 2015’s really starting to look like a complete nightmare for him.
Reuters reports that Einhorn’s Greenlight Capital may now be nursing double-digit losses this month thanks to this week’s massive selloff. As we’ve previously reported, Greenlight was already down a nasty 5.9% in July, making this month’s loss as unwelcome for him as Yanis Varoufakis’ shirt is to Wolfgang Schaeble’s wardrobe.
The main driver of his losses seems to be his large position on SunEdison, the popular U.S. solar power and wind energy plant developer. The trade appeared to be an extremely crowded one, so much so that when things started going belly up, its stock tanked a massive 47%.
At least he’s got company though; Izzy Englander’s Omega Advisors was another large holder of SunEdison shares. It’s reportedly down 12% this month. Other crowded trades, such as long Facebook or Netflix, also managed to inflict damage to Chase Coleman’s Tiger Global and Philippe Laffont’s Coatue Management.
This reminds me of LTCM a little. No matter how many times they said their holdings were uncorrelated, when the Russia crisis came, they found out the hard way that they were holding one thing – risk.
Well, at least Einhorn, Englander, and the rest know what their holding, even if they did get trampled in the stampede.
Photo: Insider Monkey