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David Einhorn Takes A Hit: Greenlight Capital Fell 5.3% In August, 13.8% YTD

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David Einhorn Takes A Hit: Greenlight Capital Fell 5.3% In August, 13.8% YTD

David Einhorn’s hedge fund Greenlight Capital did not fare particularly well in August. But then again, who did?

Following the steep selloff the market experienced over the past couple of weeks, the firm is down 13.8 percent year-to-date, a source familiar with the matter told Reuters. Furthermore, over August, the fund lost 5.3 percent.

Greenlight attributed the marked decline – mainly – to its stakes in CONSOL Energy Inc. (NYSE: CNX), which fell 7.81 percent in August; Micron Technology, Inc. (NASDAQ: MU), down 11.35 percent; Sunedison Inc (NYSE: SUNE), which plummeted 55.33 percent.

The fund also declared that long and short positions were trimmed after said losses.

The sources disclosed that, in a note sent to investors, Greenlight said it is "disappointed about the recent results.”

Related Link: David Einhorn Loves Tech: Greenlight's Top Moves And Stakes In Q2

Not Used To Failing

A recent Wall Street Journal article highlights that, since inception in 1996, Greenlight had only lost money in 2008. In fact, including the losses registered in 2008, the fund had returned, in average, almost 20 percent per year. So, this year's performance is far from what Einhorn and his clients are used to.

The note also points out that, according to Morgan Stanley, the median return for stock hedge funds like Einhorn’s was a 2 percent loss. Despite the poor performance, they have still managed to beat the S&P 500, which fell 5.3 percent, and the MSCI AC World index, down 6.2 percent. However, Greenlight Capital's returns fell in between those two benchmarks.

Image Credit: Public Domain

 

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