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
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
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
Follow Stephen Taub on Twitter @stephentaub