Apparently, a regime change in the equity markets did not bode well for Greenlight.
According to ValueWalk (h/t Business Insider), David Einhorn’s Greenlight Re fund dropped 5.9% last month – its worst showing since 2008 – and dragged the fund’s performance down to – 3.2% for the first half of the year.
Einhorn said in a call that the losses were “broad based,” though his positions on SunEdison, Consol Energy, Micron, and gold seemed to have weighted heavily on the fund’s portfolio.
Here’s what else he had to say:
“The overall market environment has become a cutely unfavorable for our investment strategy. While we could have done better in a couple of spots, we don’t expect to do well when investors shunned value stocks in favor of momentum stocks. We’ve experienced this type of dynamic a few times before and in each case, the short-term results been painful for us. As before, we expect that the environment will improve and we will recover… …In the meantime, we are actively managing the portfolio. In addition to looking for opportunities, we continue to scrutinize our current position.”
He’s sticking to his guns though, adding that: “we feel our current portfolio is quite attractive.”
Photo: Insider Monkey