Greenlight bounces back in Q2


David Einhorn's Greenlight Capital returned 7.9% after fees in Q2, bringing its YTD return to 6.4%. The S&P 500 returned 5.2% in Q2 and 7.1% YTD.

Among the fund's biggest gainers was Micron (MU -1.2%), with Einhorn noting last year's spike in DRAM prices turning out to not be a blip, and that consensus estimates remain too low - get ready for more earnings surprises and multiple expansion, he says.

"Nothing could be further from the truth," says Einhorn referring to media reports that he believes all tech is in a bubble. Among Greenlight's largest positions are Micron, Apple, Lam Research, and Marvell Technology. Of the Lam  (LRCX -0.6%) position - which was started in Q2 - Einhorn says the fund's average purchase price is $54.07, representing 7x Greenlight's estimate of calendar 2015 earnings, net of cash (the stock's near $70 at the moment).

From other sites
Comments (6)
  • Retired Securities Attorney
    , contributor
    Comments (4029) | Send Message
     
    Greenlight must have had some bad ones if his biggest position is Micron and he holds Apple. Wonder what his losses were in?
    25 Jul 2014, 03:37 PM Reply Like
  • physdude
    , contributor
    Comments (157) | Send Message
     
    A QCOR short for one.
    25 Jul 2014, 03:42 PM Reply Like
  • all on board
    , contributor
    Comments (250) | Send Message
     
    You are right!
    25 Jul 2014, 07:42 PM Reply Like
  • domyno
    , contributor
    Comments (93) | Send Message
     
    http://bit.ly/1l2BRRM
    26 Jul 2014, 05:26 AM Reply Like
  • domyno
    , contributor
    Comments (93) | Send Message
     
    http://bit.ly/1qEODxu
    26 Jul 2014, 06:03 AM Reply Like
  • Austin Newsom
    , contributor
    Comments (101) | Send Message
     
    As noted above, Greenlight this year has been a great example of the plight that can befall long-short hedge funds that are roughly market neutral: even with outstanding long position performance their short positions often limit overall results in rising and flat markets. Still a strong performance by Greenlight though.
    27 Jul 2014, 03:56 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs