The PolyCapitalist's  Instablog

The PolyCapitalist
Send Message
My investing and writing are primarily focussed on macro areas such as currencies, commodities, global investing, and geopolitics. I also closely monitor technology. I generally have a medium to longer-term investment horizon. I encourage you to review the track record of my published articles... More
My blog:
The PolyCapitalist
  • Video: Rare David Einhorn Interview on Shorting, Rating Agencies, Apple & Gold 0 comments
    Nov 25, 2010 11:40 AM | about stocks: GLD, IAU, SGOL, AAPL, MCO, LEH, LEHMQ, LEH.F

    I'm a big fan of David Einhorn's investment strategy, particularly his ability to identify accounting shenanigans at firms such as Lehman Brothers and Allied Capital, both of which he successfully shorted. (He wrote a well received book on his rather disturbing saga with Allied Capital.) He also rarely gives public interviews so the following video caught my attention. 

    The contribution of the credit rating agencies to the financial crisis have been well documented. Dodd-Frank financial 'reform' failed to make any material changes to rating agency model, which contains an inherent conflict of interest (bond issuers make payments to rating agencies, which incentivizes issuers to 'shop' for better ratings). To address this problem Einhorn simply advocates that credit rating agencies, such as Moody's (which he is short), should be abolished. Of note, famed investor Warren Buffet has been steadily reducing his large Moody's holdings.

    Einhorn also discusses how a value investor like himself can be long Apple, which many have argued is in a bubble, as well as his current gold holdings (the largest position in his hedge fund). For more from Einhorn on his rationale for owning gold see this NY Times op-ed. 
Back To The PolyCapitalist's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.