Over the 19-year history since David Einhorn founded Greenlight Capital, the fund has only had one losing year. That impressive record looks like it is going to take a bit of a hit this year as the fund is down considerably this year.
Through the end of November, the company’s main fund is down 20.6 percent on a year to date basis. It would take a small miracle for the fund to make up that loss in only one month. The only other year in which the fund took a loss was during the financial crisis in 2008 when it lost 23 percent. This means that not only is Einhorn facing his second losing year, he is potentially looking at the worst yearly loss for his fund.
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The biggest culprit behind the losses is SunEdison, the wind and solar power company which was one of its largest holdings. SunEdison gained approximately 70 percent during the first six months of the year, but it started to collapse in the second half and is down approximately 90 percent from its July high.
This article was first published at HedgeCoVest by Research Analyst Rick Pendergraft
