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David Einhorn, Whose Greenlight Is Down 5% YTD, Dumps Recently Purchased Yahoo! Stake

Tyler Durden's picture





 

Well that didn't take long. Just over two months after Einhorn's Greenlight bought a stake in Yahoo, he has now dumped the full amount. From his just issued letter to clients: "The Partnership bought Yahoo! (YHOO) earlier this year based on a sum of the parts analysis, which included putting substantial value on its Chinese assets. Shortly after the purchase, the value of the Chinese assets came into doubt as the CEO of the Chinese unit hived-off a valuable subsidiary into a corporation that he personally controls. From there, the finger pointing started in every direction. This wasn't what we signed up for. We exited with a modest loss." Well, the whole was less than the sum of the parts in this case. Oops. For this another modest gains and losses, but mostly losses explaining why the fund is down 5% YTD, read the full letter below.

Qlet2011-02

 


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Fri, 07/08/2011 - 09:38 | Link to Comment Dr. Engali
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What's a Yahoo?

Fri, 07/08/2011 - 09:40 | Link to Comment urbanelf
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Google it.

Fri, 07/08/2011 - 09:40 | Link to Comment disabledvet
disabledvet's picture

kind of like a Yoohoo without the chocolaty taste.

Fri, 07/08/2011 - 12:01 | Link to Comment dracos_ghost
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I'm not sure but I hear it's treatable with antibiotics.

Fri, 07/08/2011 - 09:40 | Link to Comment equity_momo
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Chinese proverb :

"Dont do business with Chinese bandits unless you are bigger Chinese bandit"

Fri, 07/08/2011 - 09:54 | Link to Comment DonnieD
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I believe that subsidiary changed it's name to Sino-Yahoo.

Fri, 07/08/2011 - 10:03 | Link to Comment strannick
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'Dont trade Eino-Yahoo with Sino-Yahoos'

Fri, 07/08/2011 - 09:46 | Link to Comment Mercury
Mercury's picture

At the end of the day this exactly how you want your hired gun professional money manager to behave.

Also, this is priceless regarding US sovereign debt:

Earth to S&P: if you can foresee a near-term default scenario that is plausible enough for you to warn about it AAA cannot be the correct rating.

Fri, 07/08/2011 - 09:50 | Link to Comment A Man without Q...
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"At the end of the day this exactly how you want your hired gun professional money manager to behave."

100% agree. 

Fri, 07/08/2011 - 10:11 | Link to Comment coppertop
coppertop's picture

You want him buying a stupid stock then recognizing he's an odious turd?

Fri, 07/08/2011 - 10:23 | Link to Comment Mercury
Mercury's picture

Yeah, Einhorn's a real hack at this investing stuff.

How's your track record?

Fri, 07/08/2011 - 13:05 | Link to Comment gorillaonyourback
gorillaonyourback's picture

exactly,  not sure what this guy is smokin but i dont want any

Fri, 07/08/2011 - 12:38 | Link to Comment Carl Spackler
Carl Spackler's picture

I agree, as well.

Cutting one's losses and moving on is the correct risk management move.

Now, it's up to the American people to do the same with Obama in 2012!

Fri, 07/08/2011 - 13:12 | Link to Comment gorillaonyourback
gorillaonyourback's picture

LMAO oh oh oh that will do it get rid of obummer,  if that happens are you going to feel better. If the guy u vote for gets in office r u going to jump for joy and say goodie goodie gumdrop my guy won.   fuck dude your stupidity amazes me

Fri, 07/08/2011 - 13:14 | Link to Comment gorillaonyourback
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LMAO oh oh oh that will do it get rid of obummer,  if that happens are you going to feel better. If the guy u vote for gets in office r u going to jump for joy and say goodie goodie gumdrop my guy won.   fuck dude your stupidity amazes me

Fri, 07/08/2011 - 09:44 | Link to Comment TradingJoe
TradingJoe's picture

On another note:

Algos working hard to "contain the damage"! Fucking Joke! This "Market"!

Fri, 07/08/2011 - 09:49 | Link to Comment Franken_Stein
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Einhorn = unicorn in German.

Rosenberg = rose mountain in German.

 

Fri, 07/08/2011 - 09:55 | Link to Comment Mercury
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...and Bloomberg = mountain of monetized, aggregated data in New York - so what?

Fri, 07/08/2011 - 10:12 | Link to Comment Franken_Stein
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Bloomberg = anglicized version of Blumenberg = flower mountain in German.

 

Fri, 07/08/2011 - 10:16 | Link to Comment disabledvet
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leave it to a doctor who makes monsters to finally make you laugh.

Fri, 07/08/2011 - 09:50 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Yahoo, first to win in the dot-con boom is now a sloth and crap riddled behemoth. Too big so will fail.

Disclaimer: I'd bought Webvan in 99. Have learnt a few things since! :-)

ORI

http://aadivaahan.wordpress.com/2010/11/13/wisdom-for-warriors-4/

Fri, 07/08/2011 - 10:07 | Link to Comment RobotTrader
RobotTrader's picture

Funny how most hedge funds are underperforming in the first buy and hold market in 15 years.  They should have just bought stocks and held for the long term cycle.

Fri, 07/08/2011 - 10:26 | Link to Comment disabledvet
disabledvet's picture

let me guess:  "loaded up on media plays."  can you say "tip of the iceberg?"  how about "enemy of the State?"  No finer a moniker for a man than "First in War."  That would be the REAL George Washington in case any of you are wondering.  Was quite the home decorator as well--and could really "cut the rug" as they say. Wrote probably the greatest book on proper behavior ever.

Fri, 07/08/2011 - 10:33 | Link to Comment Azannoth
Azannoth's picture

Lol he lost 5% even I can do better I lost 15% ! Ha

Fri, 07/08/2011 - 11:30 | Link to Comment mo gotti
mo gotti's picture

Einhorn is the man.  And as such, he makes mistakes.  But he's wise enough to admit that, take a small loss, and move forward.  Good move D.E.

Fri, 07/08/2011 - 11:56 | Link to Comment PulauHantu29
PulauHantu29's picture

Since China is about to Plunge into the Abyss next to America and the PIIGS, even Soros no longer brags,'China will lead us out of this recession."

Soros now says China is a Bubble about to Burst.

Fri, 07/08/2011 - 14:17 | Link to Comment Jack Napier
Jack Napier's picture

Einhorn, Finkle. Finkle, Einhorn. What's the connection here..

Fri, 07/08/2011 - 15:47 | Link to Comment Crispy
Crispy's picture

blah blah blah blah we suck blah blah blah blah you`re better off in cash than with us blah blah blah....

Fri, 07/08/2011 - 20:28 | Link to Comment Luke 21
Luke 21's picture

Einhorn has trounced the S&P over longer periods of time. I would not bet against him.

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