David Einhorn's Q4 Letter

Tyler Durden's picture

Two days ago we presented the complete hedge fund performance for 2012, in which it was clear that David Einhorn's Greenlight had a Q4 that did not go quite as expected, primarily as a result of AAPL plunging in the quarter, and his hated GMCR soaring, leaving his fund with a 8% return for the year (and -5% for the quarter), well below the general market and some of his far more vocal hedge fund peers. Those curious just what it is that caused this underperformance, here is the complete Greenlight Q4 letter discussing not only why Einhorn is doubling down in AAPL, why he still likes Marvell, Computer Sciences and Vodafone, as well as his continuing negative outlook on Iron ore, and the Yen. He closed out positions in WLP, MCO, DIA, ITX and PBI. In summary: "At quarter end, the largest disclosed long positions in the Partnerships were Apple, Cigna, General Motors, gold and Vodafone Group. The Partnerships had an average exposure of 114% long and 70% short."

Full letter read below.

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ParkAveFlasher's picture

"...GM holds substantial excess capital and has a good opportunity to further reward shareholders through additional share repurchases either from the government or in the open market..."

should read

"...GM holds substantial excess capital and has a good opportunity to further reward TAXPAYERS through additional BUGGERY either from the government or in the open market..."

rotagen's picture

Diese Einhorn Maske ist eine wunderschöne Latex Halbmaske mit Glitzer Verzierungen und einer blonden Kunsthaar Perücke

 

http://www.horror-shop.com/halloween-horror-masken/halloween-latexmasken...

 

Jetzt können Sie in den ineffizienten aufgeblähten amerikanischen Firmen ohne Wachstumsaussichten auch investieren.

ACP's picture

Ich bin ein Berliner.

PUD's picture

THAT'S A REAL "INVESTOR" THERE...YEP

slaughterer's picture

Einhorn approaches investing like the poker player that he is: 2012 taught him how dangerous it is to use long/short strategies in an HFT shark pit designed to eat up shorts.    Not much said about AAPL, nor even CMG.  

Joe Davola's picture

"runaway hometown jury"

Y'inz got a problem wit dat?  Tepper's probably cackling with glee.

PUD's picture

WHY DO SO MANY OF THESE "HEDGE FUNDS" HAVE THE WORD "CAPITAL' IN THEIR NAME?  DO THEY EXTEND "CAPITAL" OR SIMPLY "BET" WITH "CAPITAL"?

WE'RE A NATION OF GAMBLERS NOT "CAPITAL' BUILDERS...DELUSIONAL, RATIONALIZING GAMBLERS

slaughterer's picture

How bout call a spade a spade?

 

GREENLIGHT POKER PLAYAS:

TAKING YOUR MONEY AND RAISING THE OTHER GUY HIGHER

IamtheREALmario's picture

That is a very good question. Maybe because "fiat and float" were already taken?

secret_sam's picture

I think it's because it's critical to the finance industry that people never get a grasp on the distinction between "currency" and "capital."

Shizzmoney's picture

The guy picked Taco Bell over Chipotle.

He should stick to poker.

MedTechEntrepreneur's picture

Einhorn and Bass are my hero's.  Making big bank off the statists and fools.  Think of it as culling the herd.