David Einhorn’s Greenlight Capital deftly maneuvered through July’s volatility and unpredictability to post a 1 percent gain for the month.
As a result, the hedge fund manager who is on the verge of completing his deal to buy a stake in the New York Mets, trimmed his 2011 loss to 4.2 percent.
Einhorn solidly beat the S&P 500, which lost 2.15 percent in July.
According to Standard & Poor’s Howard Silverblatt, last month alone the market experienced four days up at least 1 percent and two declines by at least 1 percent.
It is interesting to see how Einhorn is the first hedge fund manager to report results for July. There is a lot of interest among investors and others to see how hedge fund managers fared during such a treacherous month.
Greenlight’s strong one-month performance was led by Apple and gold, which were among the five largest disclosed long positions in its investment portfolio, along with Microsoft, Pfizer and Vodafone Group.
In July alone, shares of Apple surged more than 16 percent thanks to astounding quarterly results filed during the month. Afterward, a number of analysts raised their price target on the stock.
The price of gold surged more than 8 percent last month while Microsoft and Vodafone were each up roughly 5 percent for the month.
Of those top five long positions, only Pfizer lost money, closing down 6.5 percent for the month.
The investment returns were reported by Greenlight Re, the insurance company controlled by Einhorn. It points out that investment returns are based on the total assets in its investment account, which are managed by DME Advisors, LP and include the majority of its equity capital and collected premiums.
Einhorn, who just a few years ago was so shrouded in secrecy he would not permit his picture taken for an article he cooperated with, is now widely seen on CNBC and speaking at conferences. He was further thrust into the spotlight when he became a serious candidate to invest $200 million in the New York Mets baseball team.
The 43 year-old value/opportunistic investor is also one among a younger crop of hedge fund managers that is inheriting the elite stature enjoyed by the retiring old guard.
Since Einhorn founded Greenlight in 1996, he has compounded at more than 21 percent per year.
Last year, his three main funds were up between 12.5 percent and 15.9 percent while in 2009 were up roughly between 31 percent and 37 percent. He started the year with a little less than $8 billion under management.
In 2003 he paid $250,000 to have lunch with Warren Buffett as part of a charity to help relieve poverty in the San Francisco area.
In 2006, he donated to charity the $600,000 he won in a poker tournament.
