David Einhorn's Greenlight Capital had a rough time in
December. The hedge fund manager lost 2.7 percent in the final
month of the year alone, extending his fourth quarter loss to
4.4 percent. This was much worse than the 1.27 percent decline
for the S&P 500 during the final three months of the
As a result, Greenlight finished the year up 7.1 percent.
This was nearly half the 13.41 percent gain for the S&P 500
(16 percent including dividends) and 15.9 percent for the
Greenlight wound up losing money in two of the four quarters
in 2012, dropping 3.3 percent in the June three-month period as
At year-end, Greenlight's largest disclosed long positions
were Apple, Cigna, General Motors, gold and Vodafone. Apple's
stock dropped more than 19 percent in the fourth quarter while
Vodafone fell more than 11 percent. Cigna's stock, however,
climbed 11 percent and GM surged nearly 25 percent. Gold lost
2.55 percent in December but was up nearly 7 percent for the
year. Greenlight also presumably took a huge beating on its
high-profile short position in Green Mountain Coffee Roasters,
whose stock surged more than 77 percent in the fourth quarter.
However, it probably made money on its short position in
Chipotle Mexican Grill, whose stock dropped about 5.9 percent
in the final quarter.
In general, Greenlight was seemingly less bullish at
year-end than it was the previous month. As of December 31, its
portfolio was roughly 102 percent long and 64 percent short. As
of the end of November, Greenlight's investment portfolio was
roughly 118 percent long and 72 percent short.
This exposure analysis is calculated on a notional basis and
does not include gold, credit default swaps, sovereign debt,
cash, foreign currency positions, interest rate derivatives and
other macro positions.
Greenlight is the first hedge fund to report December and
full-year results. The early data come from an investment
account of Greenlight Capital Re Ltd - a Cayman Islands-based
insurance company controlled by Einhorn - that is managed by a
Greenlight Capital entity.
Follow Stephen Taub on Twitter @stephentaub