David Einhorn

Frontrunning: September 1

  • Charting the Market: New Month, Same China (BBG)
  • China jitters send stocks tumbling (Reuters)
  • Oil falls on weak China factory data (Reuters)
  • Euro zone factory growth eases in August despite modest price rises (Reuters)
  • Euro-Area Joblessness Falls to Lowest Level Since Early 2012 (BBG)
  • Clinton friend advised on U.S. politics, foreign policy (Reuters)
  • Korea exports slump as Asia's woes deepen (Reuters)

US Futures Tumble After Latest Abysmal Chinese Economic Data, Crude Surge Stalls

Just like the last time when Chinese flash PMI data came out at the lowest level since the financial crisis, so overnight when both the official Chinese manufacturing and service PMI data, as well as the Caixin final PMI,s confirmed China's economy has not only ground to a halt but is now contracting with the official manufacturing data the lowest in 3 years and the first contraction in 6 months, stocks around the globe tumbled on concerns another major devaluation round by the PBOC is just around the corner with the drop led by the Shanghai Composite which plunged as much as 4% before, the cavalry arrived and bought every piece of SSE 50 index of China's biggest companies  it could find, and in a rerun of yestterday sent it to a green close, with the SHCOMP closing just -1.23% in the red. So much for the "no interventions" myth. We wonder which journalist will take the blame for today's rout.

Presenting The "Glamour" Bubble In All Its Glory

Nowhere is this new "glamour" bubble more visible than in the divergence between these "sexy" names built up on nothing but hype, or as David Einhorn would call them "story" stocks, and good old "resource" companies: those engaging in such "old economy" activities as energy and materials.

David Einhorn Says Varoufakis "Must Not Be Familiar With The Tyler Durden School Of Negotiation"

"Mr. Varoufakis, who kept reminding everyone that he is a professor of game theory, believed that the European leaders would prefer to make concessions now rather than manage the disruption of a Greek default. He must not be familiar with the Tyler Durden school of negotiation: the first rule of using game theory is you do not talk about using game theory. What’s more obvious is that Syriza didn’t understand what the game is."

Shale "Revolver Raids" To Resume In October When "Rubber Meets The Road" For HY Energy

As we discussed at the beginning of last month, the “revolver raids” have already begun for some heavily indebted US shale companies who were set to see their credit lines cut after banks performed their bi-annual review in April, which is based on where crude has traded over the preceding 12 months. Those credit lines will be assessed again in October and according to a UBS survey of the banks who have helped finance the oil & gas industry, the outlook is not good

Oil Price Recovery May Be Too Much Too Soon

The markets may have overshot, rising beyond levels warranted by the underlying fundamentals. Oil inventories are still at 80 year highs. The 487 million barrels of oil sitting in storage will take quite a while to drawdown. Crucially, oil production is still exceeding demand, leaving oil markets well-supplied.

Ira Sohn Conference Picks And Pans Summary

In what was perhaps the most uneventful Ira Sohn book-talking conference in years, some of the biggest hedge fund names came, and as expected, talked their book. There were few surprises, perhaps with the exception of David Einhorn who may have pulled an Ackman and revealed his disdain for Pioneer Natural Resources, which sent the name and the fracking sector lower if only briefly. Indicative of the broader state of the "market" Einhorn was also the only person who pitched a short.

US Shale Sector Crashes After David Einhorn Repeats What Everyone Knows Already

Greenlight's David Einhorn has come out swinging at the Fed-fueled fracking frenzy and, after pointing out facts that are extremely widely known, and have been explained innumerable times here, sent Shale stocks tumbling... led by the so-called "MotherFracker" - Pioneer Natural Resources... Einhorn concludes, "Either way the frackers are fracked."

Gundlach Considers 100X Leveraged Bet Against German Bunds

The "new" Bond King joins his predecessor on the bond throne in calling German Bunds a compelling short opportunity. Just as we said last week, "when you short negative yielding bonds you have a positive carry," so why not leverage your bet 100X and get paid to wait on rising yields? 

When To Put On Bill Gross' Big Bund Short: Citi Explains

With only six weeks (or one Graccident) to go until Bund purchases are forced out to 7-year maturities, and with traders warning that nearly every piece of PSPP-eligible German government paper will eventually trade special in repo despite the ECB’s feeble attempt to remedy the situation via its Securities Lending Program, the world wants to know: “when do I sell Bunds?”