Hedge Fund Guru David Einhorn Posts 4% Loss For Q3
Hedge fund guru David Einhorn's Green Light Capital posted a third-quarter loss of nearly 4 percent Wednesday versus a 0.6 percent gain for the S&P 500 and more than 5 percent for the NASDAQ 100.
The 45-year-old billionaire blamed much of his less-than-stellar performance on misplaced short bets on United States Steel and Mallinckrodt PLC as well as a losing long position in Civeo.
"It was a frustrating quarter," Einhorn said in a letter to investors. "We haven't had a quarter this thin in about three years."
Apple Inc. (NASDAQ: AAPL), in which the fund was long, was its "only material winner," starting out the quarter at $92.93 per share and ending at $100.75. "Consumers are enthusiastic and our thesis is playing out," Einhorn said.
During the third quarter, Einhorn added to his short position in Amazon.com, Inc., which he continues to describe as a "bubble stock."
Also in the period, Einhorn made "medium-sized" long investments in CONSOL Energy which is shifting from coal production to natural gas, and in the data storage provider EMC Corporation with its majority stake in VMware Inc.
Einhorn closed out his well-known short position in Keurig Green Mountain along with short positions in Lululemon Athletica and Under Armour.
Long positions got closed in Computer Sciences and Tempur Sealy International.
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