Published On: Tue, Mar 3rd, 2015

Loeb, Einhorn and Ackman Fare Better in February After Dismal Start to 2015

The hedge fund managers have prospered with short positions, technology holdings

Daniel Loeb+ David Einhorn+ Bill Ackman

Hedge fund managers Bill Ackman, Daniel Loeb and David Einhorn saw significant returns in February according to ValueWalk. While Einhorn’s Greenlight Capital, Ackman’s Pershing Square and Daniel Loeb’s Third Point had a hiccup in January, all three posted gains for February.

Greenlight’s return for the year is a mere 0.38%, but that was because of a poor January. The first month of 2015 was Greenlight’s worst in a year on falling fuel prices, a stronger dollar and global uncertainty. In February, the fund gained 3.8%, and its main long positions are gold, Apple, Micron, Consol Energy and SunEdison.

Although Daniel Loeb’s Third Point fell 2.5% in January, it still outperformed the S&P 500, which dropped 3%. Loeb’s short positions outperformed the long positions and posted a slight gain for January. Third Point gained traction in February, and rose 4.8%. In a letter to investors, Loeb expressed concern about the stock market, which he compared to a “haunted house” because of its volatility. In January, he noted that the first 22 out of 25 trading days saw swings of 1%.

Bill Ackman’s Pershing Square was a top performing hedge fund last year, and he inspired others to imitate his aggressive activist approach. However, the fund slowed down a bit in January, gaining only 0.8%, but returning 5.6% total for the year as of February. Ackman is still determined to destroy Hebalife for what he considers unethical business practices, and he has a significant short position in the company.

 

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