Key Takeaways
- • Greenlight Capital's main hedge fund declined 1.1% in April 2018, underperforming the S&P 500 Index, which returned 0.4% including reinvested dividends during the same period.
- • Year-to-date losses extended to 14.9% as of May 1, 2018, representing a significant drag on performance for David Einhorn's flagship value-investing strategy.
- • Greenlight underperformed broader hedge fund benchmarks, as the HFRX Global Hedge Fund Index posted a 0.3% gain in April and posted only 0.8% losses year-to-date, indicating sector-wide resilience that Greenlight failed to match.
- • David Einhorn continues to manage Greenlight Capital, the investment advisor founded in 1996 that employs deep research methodologies to identify market opportunities across long and short positions.
Summary
David Einhorn's Greenlight Capital extended its 2018 decline in April, with the firm's main hedge fund falling 1.1 percent during the month. The underperformance compounded year-to-date losses, bringing cumulative losses to 14.9 percent as of May 1, 2018, according to a client update reviewed by Bloomberg. This marked a notable divergence from market benchmarks, as the S&P 500 Index returned 0.4 percent in April when including reinvested dividends.
The April setback positioned Greenlight significantly below its peer group. The HFRX Global Hedge Fund Index, a widely tracked early indicator of industry performance, gained 0.3 percent in April and had pared year-to-date declines to just 0.8 percent as of April 26. This performance differential underscores Greenlight's struggles relative to the broader hedge fund industry during the period, despite a general environment that provided opportunities for value-focused strategies.
Greenlight Capital, founded in 1996 and led by Einhorn as president, pursues a value-investing hedge fund strategy utilizing deep research to identify investment opportunities. The firm's persistent underperformance in the first four months of 2018 reflected challenges in executing its core investment thesis during a volatile market environment where broad-based equity indices and diversified hedge fund benchmarks demonstrated greater resilience.
The April setback positioned Greenlight significantly below its peer group. The HFRX Global Hedge Fund Index, a widely tracked early indicator of industry performance, gained 0.3 percent in April and had pared year-to-date declines to just 0.8 percent as of April 26. This performance differential underscores Greenlight's struggles relative to the broader hedge fund industry during the period, despite a general environment that provided opportunities for value-focused strategies.
Greenlight Capital, founded in 1996 and led by Einhorn as president, pursues a value-investing hedge fund strategy utilizing deep research to identify investment opportunities. The firm's persistent underperformance in the first four months of 2018 reflected challenges in executing its core investment thesis during a volatile market environment where broad-based equity indices and diversified hedge fund benchmarks demonstrated greater resilience.
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