Seeking Alpha

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).
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Comments (6)
  • Retired Securities Attorney
    , contributor
    Comments (3004) | 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 (122) | Send Message
     
    A QCOR short for one.
    25 Jul 2014, 03:42 PM Reply Like
  • all on board
    , contributor
    Comments (214) | Send Message
     
    You are right!
    25 Jul 2014, 07:42 PM Reply Like
  • domyno
    , contributor
    Comments (88) | Send Message
     
    http://bit.ly/1l2BRRM
    26 Jul 2014, 05:26 AM Reply Like
  • domyno
    , contributor
    Comments (88) | Send Message
     
    http://bit.ly/1qEODxu
    26 Jul 2014, 06:03 AM Reply Like
  • Austin Newsom
    , contributor
    Comments (63) | 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
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