Greenlight Capital Qualified LP
Einhorn's Shorts Drag Down Performance for Greenlight
David Einhorn's shorts brought down Greenlight Capital Qualified's returns during the first quarter of 2011. The hedge fund manager made a number of short bets that failed to pan out including The St. Joe Co (JOE.N) and Moody's Corp (MCO.N). The hedge fund fell 2.9% despite the good performance on the long side of Greenlight's portfolio.
Hedge fund manager David Einhorn is coming up short this year largely because some of the bets he made on stocks falling haven't panned out.
In the first quarter, Einhorn's Greenlight Capital Qualified LP dipped 2.9 percent, compared to an average 2 percent gain for the hedge fund industry.
A Greenlight investor said the New York-based hedge fund firm underperformed because its so-called short positions, where investors bet that the stock price will drop, lost 9.2 percent in value during the period.
By contrast, the fund's bet on stocks and other assets rising in value performed well, increasing 6.7 percent. Part of Einhorn's long portfolio has included gold, the kind you can touch, and bets on BP (BP.L: Quote) and Vodafone Group (VOD.L: Quote). Fund managers will not be releasing their first-quarter holdings until mid-May. Source
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