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Greenlight is a $6 billion fund ran by David Einhorn and has seen annual returns of over 20%. Greenlight specializes in spin-offs and value investing. Einhorn's name has been popping up in the media a lot over the past year, as he talked about his well-documented short position in Lehman Brothers (OTC:LEHMQ). And, while that position paid off handsomely for him, it barely offset losses he experienced from other positions.

This update does not come from various SEC filings, but rather from its latest investor letter. In it, we learn that hedge fund Greenlight Capital's top five long equity positions were Allegheny Energy (AYE), Arkema (OTCPK:ARKAY), Criteria Caixa, Österreichische Post, and URS Corp.(NYSE:URS), and that it had an average exposure of 76% long and 37% short. During the last quarter, it sold out of its long position in Ameriprise Financial. Additionally, it covered the following short positions: American Reprographics (NYSE:ARP), Aurelian Resources (OTC:AUREF)(Canadian), Equinix (NASDAQ:EQIX), Great Atlantic & Pacific Tea (GAJ), Itron (NASDAQ:ITRI), Macquarie Airports (OTC:MQRSF)(Australian), and McGraw-Hill (MHP).

It also added some new long positions in the last quarter. These additions include Allegheny Energy (AYE), Commscope (CTV), MEMC Electronic Materials (WFR), gold and an index of gold miners (NYSEARCA:GDX), and the Japanese Yen. Additionally, Greenlight also mentions that it was buying bank debt, high yield bonds, convertible bonds, gold, select foreign currencies, and equities. It’s also interesting to note that Greenlight was short Volkswagen and got caught up in the massive short squeeze, which it details in the letter. Since opening in 1996, 2008 was the first year it had lost money.

We've previously covered Greenlight's portfolio holdings, as well as its performance numbers. Also worth checking out is Einhorn's book, where he details his battle shorting Allied Capital. In it, you learn about Greenlight's theses formation and investment process: "Fooling Some of the People All of the Time."

You can read Greenlight's investor letter in its entirety here (pdf file), courtesy of Zero Hedge.

Source: David Einhorn's Greenlight Capital: Portfolio Update