Greenlight Capital Re, Ltd.NASDAQ
Greenlight Re: Double-Digit Returns Over The Next 5 Years Seem Likely
Bram de Haas • 18 Comments
Bram de Haas • 18 Comments
Mon, Nov. 28, 1:41 PM
- Presenting at the Robin Hood Investors Conference, Greenlight Capital's (NASDAQ:GLRE) David Einhorn tells the crowd he likes Bayer (OTCPK:BAYRY) as a standalone or after a merger with Monsanto (NYSE:MON).
- Both stocks are modestly lower on the session, but have perked up since Einhorn made his comments.
Thu, Nov. 3, 5:13 PM
Thu, Oct. 20, 11:32 AM
- Reinsurers sell coverage to other insurance companies for natural disasters and such. While they wait for loss-triggering events to happen, the reinsurers collect premiums which they can then invest. Warren Buffett (BRK.A, BRK.B) credits this "float" as a big factor behind his great fortune.
- But business isn't what it used to be, write Sonali Basak and Noah Buhayar in Bloomberg, and Buffett sold stakes in Swiss Re and Munich Re last year, saying prospects over the next decade don't look great. He also put new leadership in charge of Berkshire's General Re to try and reverse more than a decade of shrinking float.
- Among the issues are what's turned into years of barely visible interest rates. “It is no fun,” says The Oracle, to “find out that a great many of the things that you were buying a few years ago now have negative yields.” It's also become a more crowded field with the entrants first of David Einhorn (NASDAQ:GLRE) and more recently Dan Loeb (NYSE:TPRE) helping to create a price war, with premiums down 40% over the past decade.
- Insurers can also now turn to investment banks to lay off risk by issuing catastrophe bonds - a market that's grown from $9.2B to $25B over the last ten years.
- A shakeout is already underway as there have been a number of sector mergers. What might further shake things up would be a catastrophe big enough to cause significant industry losses.
- Interested parties: CB, RNR, AHL, ENH, AXS, ACGL, RGA, UNM
Mon, Aug. 1, 4:10 PM
Tue, May 3, 12:03 PM
- Q1 net income of $28.7M or $0.77 per share vs a loss of $24M and $0.65 one year ago.
- Book value per share of $22.88 down 24% Y/Y. Current price is $21.45.
- Gross written premiums of $166.8M up from $129.7M a year ago. Underwriting income of $3.7M vs. $800K. Net investment income of $28.4M, or 2.5% gain vs. a loss of $24.8M, of 1.8%.
- Speaking on the conference call about one of his hedge fund's top five longs which had its best quarter since 1986, David Einhorn says "aggressive and counterproductive monetary policies are bullish for gold."
- He takes a shot at the Fed's so-called "data dependency," noting it doesn't appear to related to employment which continues to improve, nor to core inflation which is now running north of the 2% target. “We believe the increasingly adventurous monetary policy is bullish for gold."
- Previously: Greenlight Capital misses by $0.04, beats on revenue (May 2)
- GLRE -0.25%
Mon, May 2, 4:14 PM
- Greenlight Capital (NASDAQ:GLRE): Q1 EPS of $0.77 misses by $0.04.
- Revenue of $166.28M (+132.4% Y/Y) beats by $5.78M.
Tue, Apr. 12, 8:52 AM
- Stocks go up and they go down, but Dan Loeb's Third Point hedge fund gets paid by Third Point Reinsurance (NYSE:TPRE) no matter what, reaping $98.8M in management fees since 2013.
- A similar arrangement is paying dividends for David Einhorn, whose DME Advisors has pulled down more than $280M in management and performance fees since 2007 from Greenlight Capital Re (NASDAQ:GLRE).
- The reinsurer is a good deal for money managers as its gives them more or less permanent capital to play with, but for investors the companies are pitched as a way to benefit from their managers' acumen. It hasn't worked out too well - investments in the hedge funds themselves have performed far better than in the reinsurers.
- Source: Bloomberg
- Now read: Tracking Dan Loeb's Third Point Portfolio - Q4 2015 Update
Tue, Feb. 23, 12:24 PM
- "Bulls are assuming the current commodity environment is an ordinary cyclical downturn," says David Einhorn, speaking on the Greenlight Re (GLRE -1.8%) earnings call. "We believe it is the end of a commodity supercycle, and this will exert a long period of earnings headwinds for [heavy equipment manufacturers].”
- Burned last year in part from long bets on Micron, SunEdison, and Consol Energy, Einhorn of late has boosted his portfolio's short exposure, and Greenlight's main hedge fund was ahead 1.4% during January.
- As for longs, Einhorn is betting slowly rising wages combined with a "tax cut" from lower energy prices will boost consumer spending, and he's still a bull on Apple, GM, Michael Kors, and Macy's.
- Previously: Greenlight Capital beats by $0.23 (Feb. 22)
Mon, Feb. 22, 4:12 PM
- Greenlight Capital (NASDAQ:GLRE): Q4 EPS of -$1.17 beats by $0.23.
Tue, Feb. 2, 10:22 AM
- Greenlight Capital's main fund lost 20.4% last year, bringing AUM down $3.2B. Most of the asset loss was due to the fund decline, however, as investors pulled just $600M, according to a Bloomberg estimate.
- The stickiness of investors means David Einhorn's fund will avoid the fate of a number of other hedge funds forced to close their doors after a mass exodus of money. Among Greenlight's advantages are its large number of investors (800), its impressive track record (annual average returns of 16.5% since 1996), and contracts which lock up a sizable portion of assets.
- The fund also has captive money from Greenlight Re (NASDAQ:GLRE), managing the reinsurer's $1.1B investment portfolio.
Dec. 1, 2015, 11:26 AM
- Greenlight Capital's main hedge fund fell 5.2% in November, brining its yearly decline to nearly 21%, reports Bloomberg. Barring something ridiculous occurring in December, 2015 will go down as Einhorn's second losing year in nearly two decades (the other was 2008, when the fund fell 23%).
- Among the soured bets of 2015 are SunEdison, Consol Energy, and Micron Technology.
- Greelight Capital Re (NASDAQ:GLRE), whose float is invested alongside Greenlight, is down 0.5% today and about 37% YTD.
Nov. 2, 2015, 3:05 PM
- Blaming weather, new community development, labor shortages, and an extended building cycle pushing back closings in core markets, Green Brick Partners (GRBK -18%) cuts full-year pretax income guidance to $22M-$24M.
- Full Q3 results are due after the close on Nov. 12.
- It's another blow for David Einhorn's Greenlight Capital, an owner of 49% of the company, not to mention Greenlight Capital Re (GLRE -0.7%), where losses are growing thanks to hits in its investment portfolio.
- Dan Loeb's Third Point owns about 17% of GRBK. Third Point Reinsurance (TPRE +1.9%).
Oct. 26, 2015, 1:00 PM
- After the close Friday, Greenlight Re (GLRE -8.2%) reported a Q3 loss of $219.7M or $5.98 per share vs. a loss of $51.8M and $1.40 one year earlier.
- Book value per share fell 20% to $23.29 from $29.16 90 days earlier.
- At issue was a net investment loss of 14.2% on the company's investment portfolio as David Einhorn's Greenlight Capital suffered a rough quarter.
- Making matters worse, A.M. Best cuts its outlook on GLRE's credit rating to negative from stable, a move which could make it harder to win new reinsurance business.
- A conference call is set for Thursday at 9 ET.
- Previously: Greenlight Capital reports Q3 results (Oct. 23)
Oct. 23, 2015, 4:29 PM
- Greenlight Capital (NASDAQ:GLRE): Q3 EPS of -$5.98 vs. -$1.4 in 3Q14
- Revenue of $134.57M (+38.4% Y/Y)
Oct. 22, 2015, 3:02 AM
- With the hedge fund industry facing increasing pressure, David Einhorn, whose Greenlight Capital (NASDAQ:GLRE) is nursing a 17% loss this year, has decided to shake up his portfolio.
- The billionaire investor has liquidated investments in LAM Research and Citizens Financial, bought new shares in Michael Kors and UIL Holdings, and exited short bets against St. Joe, U.S. Steel, Robert Half and Intel.
- Should Einhorn end 2015 in the red, it would be his first loss since the financial crisis.
Oct. 21, 2015, 4:29 AM
- According to firm Hedge Fund Research, hedge funds suffered their largest quarterly loss in assets since the financial crisis during the three months that ended in September.
- The third-quarter saw the average fund lose 3.9% driven by slowing growth in China, sliding commodities prices and a likely U.S. Fed rate hike that sent stocks tumbling.
- Notables: Bill Ackman's Pershing Square (OTCPK:PSHZF) has now fallen 12.6% for the year, while David Einhorn's Greenlight Capital (NASDAQ:GLRE) is down 17% YTD.
- Previously: More hedge funds see heavy losses in August (Sep. 03 2015)
- Previously: Hedge funds took a beating in August (Sep. 01 2015)