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The World Makes No Sense Anymore But David Einhorn Soldiers On

The World Makes No Sense Anymore But David Einhorn Soldiers On

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?

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]

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