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 (4066) | 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 (160) | Send Message
    A QCOR short for one.
    25 Jul 2014, 03:42 PM Reply Like
  • all on board
    , contributor
    Comments (257) | Send Message
    You are right!
    25 Jul 2014, 07:42 PM Reply Like
  • domyno
    , contributor
    Comments (93) | Send Message

    26 Jul 2014, 05:26 AM Reply Like
  • domyno
    , contributor
    Comments (93) | Send Message

    26 Jul 2014, 06:03 AM Reply Like
  • Austin Newsom
    , contributor
    Comments (135) | 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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