David Einhorn’s Greenlight Takes a Beating in August
The firm told investors it lost 5.3% in August as the value of its major holdings declined, said people familiar with the matter, widening its loss for the year to 13.8%.
By Juliet Chung
Aug. 31, 2015 7:30 p.m. ET
August’s wild ride for stocks worsened what already was hedge-fund mogul David Einhorn’s most challenging year since the financial crisis.
On Monday, his firm told investors it lost 5.3% in August as the value of its major holdings declined, said people familiar with the matter, widening Greenlight Capital Inc’s loss for the year to 13.8%.
“We are disappointed about the recent results,” Greenlight said in a note to investors.
A loss for all of 2015 would be Greenlight’s first full year of losses since 2008, its only down year since Mr. Einhorn started the firm in 1996. Mr. Einhorn has lost nearly $1.4 billion so far this year. A Greenlight spokesman declined to comment on the firm’s performance.
Greenlight’s losing streak so far in 2015 marks a rare setback for Mr. Einhorn, a baby-faced, poker-playing hedge-fund manager who shot to fame with his critique of Lehman Brothers Holdings Inc. in the months before the firm collapsed in September 2008. The former analyst started Greenlight after getting the go-ahead, or “green light,” from his wife to do so.
His clout has mushroomed since the crisis as his lengthy, bearish presentations on companies, which often incorporate cartoons and video clips, have regularly moved markets. Companies with shares that sank after getting criticized by Mr. Einhorn include real-estate developer St. Joe Co. and coffee maker Green Mountain Coffee Roasters Inc. Questions from him on a 2012 Herbalife Ltd. earnings call sent the stock price tumbling within minutes before it closed down 20% that day.
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