A Hold Back At Einhorn's Greenlight Capital, A Terrible Reflection On Hedge Funds

Yeah, when your longs teach downwardly in addition to your shorts teach up, yous got some 'splainin' to do, Lucy.
From FT Alphaville:

David Einhorn, inwards search of lost time

David Einhorn's hedge fund Greenlight Capital is having a hard year. To date, the storied fund has returned -13.6 per cent internet of fees in addition to expenses versus the -0.8 per cent render of the S&P 500.
Seemingly befuddled past times the performance, Mr Einhorn struggled to ascribe blame to whatever cardinal errors or systematic issues inwards his Q1 missive of the alphabet sent to investors yesterday;

In our history, we've had 5 other quarters amongst a greater than 5 per cent loss. In iv of those, in that location were clear basis or marketplace events that provided a uncomplicated explanation, in addition to inwards one, a few positions inwards our portfolio went incorrect at the same time. This menstruum has been similar whatever of those.

Mr Einhorn goes onto explicate the functioning past times focusing on the twenty largest long in addition to brusque positions, in addition to how they performed afterwards missing or beating their respective earnings expectations:

...the longs that met or exceeded expectations (representing 89 per cent of capital) advanced to a greater extent than or less ii per cent in addition to those that missed (17 per cent of capital) vicious almost viii per cent. For the shorts, those that met or exceeded expectations (representing 29 per cent of capital) rose vii per cent in addition to those that disappointed (28 per cent of capital) vicious almost 5 per cent.

All practiced then?

Well non quite, afterwards performing good post-earnings these positions reversed dramatically. For trial car-creator General Motors, the largest long position inwards the fund at 19.2 per cent of capital, according to Greenlight's final 13-F filing, crunch earnings earlier suffering a eighteen per cent draw-down over the quarter....MUCH MORE