Greenlight Capital

  • davideinhorngreenlight

    Hedge Funds

    Dear Greenlight Investors

    August performance.

    / Sep 4, 2012 at 10:52 AM
  • Hedge Funds

    Greenlight Capital Is Sick Of Ineffective European Leadership, Rival Organizations Poaching Its Talent

    By early June the market had given back all of its first quarter gains, and the crisis yet again came to a head. The European leaders took a cue from Groundhog Day and did as they always do: they announced yet another ‘Summit to Fix Everything’…The whole thing is such a mess – who can […]

    / Jul 24, 2012 at 11:56 AM
  • News

    Warren Buffett And David Einhorn Are In Agreement Re: The Frigidity Of Their Disfavored Investment Ideas

    Back in February, in his annual letter to investors, Berkshire Hathaway chief Warren Buffett spent a good bit of time discussing why one shouldn’t own gold. Beyond the fact that, according to WB, gold doesn’t “change in size and [is] incapable of producing anything,” and you’d be much better off buying farmland (which “a century from now will have produced staggering amounts of corn, wheat, cotton and other crops and will continue to produce that valuable bounty”) or shares of Exxon Mobil (which “will probably have delivered trillions of dollars in dividends to its owners,” the Oracle of Omaha had one incontrovertible, be all end all reason for eschewing the metal: its unfuckability. Oh sure, you can do things to a cube, you can fondle it, you can talk dirty to it, you can send nude pictures of yourself, you can even drill a hole in it and fuck it senseless, but, the thing is, the cube will not respond. No reciprocation, no gratitude, not even a sign it enjoyed itself.  For Buffett, no further argument was necessary as to the worthlessness of the commodity. (Silver, on the other hand, will make you feel like you’re 18 again.) Anyway, David Einhorn sort of feels the same way about the dollar.

    Greenlight Capital 1Q2012 Letter To Investors [PDF]
    Related: Don’t Think He Hasn’t Tried

    / May 30, 2012 at 12:47 PM
  • Ira Sohn

    David Einhorn Puts Martin Marietta Materials On Notice, Gives GJF.NO His Blessing

    Einhorn says he has a lot of stocks to talk about, starts with Martin Marietta Materials, which he says has “lots of problems.” Einhorn calls MLM CEO a “degree in megalomania”…Einhorn just pulled out a magic wand and I’m pretty sure made a Harry Potter reference. And he’s onto talking global economies. He’s talking up […]

    / May 16, 2012 at 3:56 PM
  • News

    David Einhorn Will Just Put It Out There That A Salad Every Once In A While Won’t Kill You

    Directed at no one in particular but if a certain jelly donut-addicted Fed Chair has found even his extra-forgiving sweatpants getting too snug, he might want to take note.

    / May 3, 2012 at 11:46 AM
  • News

    David Einhorn Is Doing All Of His Management Calls Publicly From Now On

    Wouldn’t it be fun to be the kind of guy who could swoop into an earnings call and be all “aren’t you just a giant fraud?” and freak everybody out and cause the stock to plummet? I feel like that would be fun. I am not that kind of guy, which is just as well, […]

    / May 1, 2012 at 5:39 PM
  • greenlightcapital

    Hedge Funds

    Dear Greenlight Investors

    March performance.

    Greenlight Capital Offshore
    March: 0.4%
    YTD: 6.7%

    / Apr 2, 2012 at 10:33 AM
  • greenlightcapital

    Hedge Funds

    Dear Greenlight Investors

    February performance.

    / Mar 1, 2012 at 12:49 PM
  • david einhorn great tie


    After The STOCK Act It Will Still Be Legal To Trade On Congressional Inside Information*

    Here’s a sort of touching monologue from David Einhorn’s call with Punch:

    If you’ve done the analysis, and come to the conclusion that on it’s own, the company is not going to make it, it makes all of the sense in the world to raise equity at whatever the price is, so that you can know that the company, you know, is – is going to make it. Now, what that brings to my mind though is, you know, obviously we haven’t done your analysis, we haven’t done — signed an NDA; I don’t know that we’re going to sign an NDA, because we prefer to just remain investors, but from my perspective, and I’ll be just straight up with you, is that gives a lot of signalling value. And the signalling value that comes from figuring out the company has figured out that it’s not going to make it on it’s own is that we’ve just grossly misassessed the — you know what’s going on here. And — and that, that will cause us to have to just reconsider what we’re doing, which is not the end of the world to you. You will continue on even if we don’t continue on with you.

    You could sort of see why the FSA read that to mean that he was insider trading. Like …
    (1) You have told me something with signalling value. Sorry – “a lot of signalling value.”
    (2) I will now act on that signal.
    (3) Don’t be mad.
    “Signalling value” sure sounds like it means “material nonpublic information,” doesn’t it?

    Now as we’ve discussed before, trading on that information would not be enough to make Einhorn guilty of insider trading in the US, though maybe it wouldn’t be exactly a great idea here either. Why? Because in our weird but sort of sensible insider trading laws, it’s just not illegal to trade on material nonpublic information. It’s only illegal to trade based on material nonpublic information that was obtained in violation of some sort of duty of confidence. Since Einhorn didn’t sign an NDA, he had no duty of confidence. And since the Punch CEO and bankers weren’t tipping him for nefarious purposes, but were instead sounding him out on the company’s behalf as a shareholder and potential investor in a new capital raise, they weren’t breaching their duty of confidence. You could quibble with the details of that but it’s basically the law here. In England not so much.

    That also seems to be the law for our friends in Congress, who recently passed a law making it illegal for them to insider trade, which is worrying some people who make their living from trading on Congressional inside information:

    / Feb 16, 2012 at 7:10 PM
  • david einhorn 16feb12

    Hedge Funds, News

    David Einhorn Said No To A Capital Raise, Kept The Door Open For A Pub Crawl

    Remember how David Einhorn got in trouble in England for insider trading on Punch Taverns stock and he was all “what?” and we were all “what?“? Well, you can judge it for yourself because now the entire disputed call with Punch is available online (at the back of this). So go read it, or read the highlights here. The FSA still thinks it’s insider trading, but the count of people confused by the whole thing is rising, and now includes the Merrill banker on the call. There’s lots of insider traderiness on this side of the pond today too so we should talk about that in a bit.

    For now, though, two other things. One is quick – no one can resist one part of the call and I can’t either so here it is:

    DAVID EINHORN: Hi, I’m sorry I didn’t get to see you when you were in New York.
    PUNCH CEO: No, no, we — well, we’ve — we’ve only had the chance to speak once, although we have seen [reference to Greenlight Analyst] a few times since then.
    DAVID EINHORN: Oh, you’re — you’re — you’re getting more than — than I could help with anyway. So, this is good.
    PUNCH CEO: Okay. That’s fair enough. Well, one day we’ll get you around on a pub crawl around some English pubs.
    DAVID EINHORN: Oh, that sounds fun.
    PUNCH CEO: It is. You’re right.

    English readers: Is it? I just assumed that Punch Taverns are rather grim places, like TGI Friday’s but with more … punching? … but maybe I’m totally off base here. Also, here is a hypothesis: vice investments do well because, for the same level of profitability, they get more analyst/investor coverage and enthusiasm. Wouldn’t you rather go on a pub crawl instead of like a tour of an auto parts factory in Queens? Would that influence your stock recommendations / money allocations? Someone should do a study.

    / Feb 16, 2012 at 2:14 PM
  • Hedge Funds

    Dear Greenlight Investors

    January performance.

    / Feb 1, 2012 at 10:40 AM
  • News

    More People Will Soon Have The Opportunity To Share David Einhorn’s Insider-Trading Confusion

    Finally someone’s listening to us, I guess: While prominent hedge-fund manager David Einhorn was the focus of the latest alleged insider-trading case this week, a supporting actor in the drama belongs to a fraternity of London bankers that also is under increased scrutiny. Andrew Osborne, until last month a so-called corporate broker in the sprawling […]

    / Jan 27, 2012 at 4:02 PM
  • Hedge Funds, News

    It’s Also Not Entirely Clear To David Einhorn, Or Us, Why Punch Isn’t In Any Trouble Here

    On further inspection Greenlight Capital’s unfortunate relations with Punch Taverns went down more or less as I had thought: they had an un-wall-crossed conversation with management that David Einhorn took to be a sign to sell, and sold without ever agreeing to keep any information confidential. One key and sort of amusing difference – if […]

    / Jan 26, 2012 at 3:29 PM
  • News

    David Einhorn: “I Have Quite A Lot To Say”

    …about all this. For starters: – “This is as much like insider trading as soccer is like football” – “The FSA has spent the last two years forcing square pegs into round holes” – “This is like a traffic cop with a quota at the end of the month, with a miscalibrated radar gun” – […]

    / Jan 25, 2012 at 4:12 PM
  • Hedge Funds, News

    It May Surprise You To Learn That Reasons For Greenlight’s “Punch” Fine Are Not Entirely Clear To Me Either

    Remember how insider trading is trading on material nonpublic information? Only how it’s not? Apparently it is in England! Someone found that out today. I know, I’m soft on insider trading but hear me out. This is actually kind of screwed up. First, a story. I used to work in a business that raised money […]

    / Jan 25, 2012 at 1:42 PM
  • Hedge Funds

    Greenlight Capital Fined Over ‘Punch’ Trades For Reasons Not Entirely Clearly Clear To Greenlight

    According to the FSA, which imposed the £7.2 million fine for “inadvertently engaging in market abuse in connection with trading of Punch Taverns…the market abuse was not deliberate or reckless. Mr. Einhorn did not believe that the information that he had received was inside information and he did not intend to commit market abuse.” Sayeth […]

    / Jan 25, 2012 at 12:05 PM
  • Hedge Funds

    David Einhorn Works Hard For The Money

    So hard for it, honey. (So you better treat him right, 2012.)

    / Jan 18, 2012 at 4:13 PM
  • News

    It’s Not So Easy To Get Away From This Voluntary Greek Bond Swap

    Bloomberg reported today that, back in July, David Einhorn and some other people decided that (1) betting against European sovereign debt was, and would remain, a good idea, but (2) doing it in CDS form was kind of dumb, so (3) they’d switch to doing it in physical form, by borrowing and shorting the debt. […]

    / Dec 16, 2011 at 1:23 PM

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