The World Makes No Sense Anymore But David Einhorn Soldiers On

The hedge fund superhero continues his fight for truth, value and the American way, and also continues losing.
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Last year was not a fun one for David Einhorn, who managed only a relatively miniscule return while both investors and his wife abandoned him. The former was primarily the result of a world turned upside down: For if Donald Trump can be president, why should Elon Musk be held to the established standards of what constitutes a good investment? Why shouldn’t brilliant financial innovations be laughed at and ridiculed?

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Einhorn has acknowledged that he feels like he’s “been running face first into the wind.” But he’s not giving up. “We don’t intend to capitulate and are sticking to our strategy.”

Alas, the new normal isn’t capitulating, either, and has greeted Einhorn in 2018 with his worst monthly loss in almost a decade.

David Einhorn’s Greenlight Capital hit a wall in January as its main hedge fund lost 6.6 percent….

All of Greenlight’s five top disclosed long holdings at the end of 2017 -- AerCap Holdings NV, Bayer AG, Brighthouse Financial Inc., General Motors Co. and gold -- made money during the first month of this year, suggesting the firm’s short positions may have caused damage. Netflix Inc., a member of Greenlight’s “bubble basket,” surged more than 40 percent in January. Shares of Amazon.com Inc. and Tesla Inc. also gained.

This in spite of the fact that Einhorn’s longtime antipathy for “House of Cards” finally proved prescient, with Netflix’s biggest hit meeting its end. No matter. Nothing makes sense anymore. But David Einhorn perseveres. Hey, at least Twitter made some money last month.

Einhorn’s Main Hedge Fund Posts Worst Monthly Loss Since 2008 [Bloomberg]

Related

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.