Greenlight Capital
An abbreviated version of Einhorn’s speech ran as an Op-Ed in this morning’s Times. We’ve obtained the full text of yesterday’s chat.
A small business lender once targeted by David Einhorn agreed today to settle fraud charges by the Justice Department for $26.3 million. The settlement, from Ciena Capital (once part of Allied Capital Corp.,) also resolves a whistleblower lawsuit by Einhorn’s Greenlight Capital.
Greenlight, and co-plaintiff James Brickman, will receive $4.3 million as part of the settlement. The feds charged Ciena with defrauding the Small Business Administration when they sought payments on federally-backed loans they made and serviced. The loans, which eventually defaulted, violated SBA rules and underwriting standards. Read more »
Remember that story a few months back in the Wall Street Journal, about the hedge fund “idea dinner” that insinuated a bunch of managers got together to break bread while plotting to take down the Euro? David Einhorn and the Greenlight team do! They’ve been discussing it amongst themselves for a while, and today it made their latest quarterly letter. What’d they think of the piece? Well, reporting the actual facts instead of pulling them out of the reporter’s ass would’ve improved things slightly. Apparently the Journal got a whole bunch of stuff wrong and now the responsible parties are going to pay. Sorry, kids. Sometimes the nicest hedge fund manager in the world just has to cut a bitch. Sayeth DE and Co:
Having already made his millions on credit-default swaps, David Einhorn wants to see a last call on the controversial derivates.
In his recent speech to the Value Investing Conference, the Greenlight Capital founder lambasted CDS, blaming them for a whole array of social problems and calling them a slippery slope toward Stalinism. What to do with such a social virus? Stamp it out.
“I think that trying to make safer credit-default swaps is like trying to make safer asbestos,” Einhorn said. Quite a statement from one of the hedge fund chieftans who earned the ire of many a Wall Street CEO during the height of the financial crisis, in effect agreeing that CDS are un-American.
Also: the next time you people want to debate MBA v. CFA, know this– Greenlight’s new controller has both, in addition to a CPA, to say nothing of his kickball skills.
“For the month of August, Greenlight Capital Qualified, L.P. returned 0.8% (net of all fees and expenses). Greenlight Capital Qualified, L.P. has returned 24.7% for the year-to-date.”
Earlier: Performance Stats: The Greenlight Unit
“For the month of July, Greenlight Capital Qualified, L.P. returned 3.3% (net). Greenlight Capital Qualified, L.P. has returned 23.7% for the year-to-date. The partnership is approximately 87% long and 57% short.”
Earlier: Performance Stats: The Greenlight Unit
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