David Einhorn’s returns for September, Q3 and YTD (through Q3) are out! Overall, it was a tough quarter for the value oriented hedge fund manager, with a Q3 return of negative 3.7%. One of the biggest negative contributors was CONN’s which fell approximately 39% in Q3 – Einhorn is one of the largest owners of the company.
SUNE a top five Einhorn holding was down approximately 16% in Q3, while another top five holding MRVL was down around 6% during the same time period. Gold hurt returns as well, the precious metal dropped about 9% in the quarter. Einhorn had one major success right before the quarter ended, with a profit of around $100M in Einstein bagels.
Below is a summary of positions and returns from Greenlight Capital RE, to sum it up though…
Seth Klarman: Investors Can No Longer Rely On Mean Reversion
"For most of the last century," Seth Klarman noted in his second-quarter letter to Baupost's investors, "a reasonable approach to assessing a company's future prospects was to expect mean reversion." He went on to explain that fluctuations in business performance were largely cyclical, and investors could profit from this buying low and selling high. Also Read More
In September (GLRE was down%, in Q3 – %3.7%, leaving the year to date return at positive 3.2%.
Check back for Einhorn’s Q3 letter, his comments on the GLRE conference call and much more.
A spokesperson for Greenlight Capital declined to comment to ValueWalk.
Below are some more details.
Net Monthly Returns:
September 2014: (1.5)%
Net Quarterly Returns:
|Full Year|| 3.2(2)
(1) Investment returns are calculated monthly and compounded to calculate the quarterly and annual returns. Actual investment income may vary depending on cash flows into or out of the investment account. Past performance is not necessarily indicative of future results.
(2) Represents partial year results through 30-September-2014
As of 30-September-2014, the largest disclosed long positions in Greenlight’s investment portfolio are Alpha Bank, Apple, gold, Marvell Technology, Micron Technology, Resona Holdings and SunEdison; our investment portfolio is approximately 108% long and 68% short. All exposure information is calculated on a delta adjusted basis and excludes credit default swaps, interest rate swaps, sovereign debt, currencies, commodities, and derivatives on any of these instruments.
In other news, Dan Loeb’s Third Point RE was down 0.3% in September and is up 5.5% YTD. Below is his September investor tear sheet.