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

Submitted by Tyler Durden on 07/08/2011 09:35 -0400

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 | 1436082 Dr. Engali

What's a Yahoo?

Fri, 07/08/2011 - 09:40 | 1436097 urbanelf

Google it.

Fri, 07/08/2011 - 09:40 | 1436099 disabledvet

kind of like a Yoohoo without the chocolaty taste.

Fri, 07/08/2011 - 12:01 | 1437002 dracos_ghost

I'm not sure but I hear it's treatable with antibiotics.

Fri, 07/08/2011 - 09:40 | 1436095 equity_momo

Chinese proverb :

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

Fri, 07/08/2011 - 09:54 | 1436172 DonnieD

I believe that subsidiary changed it's name to Sino-Yahoo.

Fri, 07/08/2011 - 10:03 | 1436233 strannick

'Dont trade Eino-Yahoo with Sino-Yahoos'

Fri, 07/08/2011 - 09:46 | 1436103 Mercury

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 | 1436148 A Man without Q...

"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 | 1436291 coppertop

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

Fri, 07/08/2011 - 10:23 | 1436363 Mercury

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

How's your track record?

Fri, 07/08/2011 - 13:05 | 1437266 gorillaonyourback

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

Fri, 07/08/2011 - 12:38 | 1437151 Carl Spackler

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 | 1437288 gorillaonyourback

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 | 1437300 gorillaonyourback

Fri, 07/08/2011 - 09:44 | 1436118 TradingJoe

On another note:

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

Fri, 07/08/2011 - 09:49 | 1436139 Franken_Stein

Einhorn = unicorn in German.

Rosenberg = rose mountain in German.

Fri, 07/08/2011 - 09:55 | 1436184 Mercury

...and Bloomberg = mountain of monetized, aggregated data in New York - so what?

Fri, 07/08/2011 - 10:12 | 1436298 Franken_Stein

Bloomberg = anglicized version of Blumenberg = flower mountain in German.

Fri, 07/08/2011 - 10:16 | 1436325 disabledvet

leave it to a doctor who makes monsters to finally make you laugh.

Fri, 07/08/2011 - 09:50 | 1436150 Oh regional Indian

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 | 1436269 RobotTrader

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 | 1436381 disabledvet

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 | 1436424 Azannoth

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

Fri, 07/08/2011 - 11:30 | 1436814 mo gotti

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 | 1436966 PulauHantu29

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 | 1437521 Jack Napier

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

Fri, 07/08/2011 - 15:47 | 1438013 Crispy

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 | 1438772 Luke 21

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

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

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