David Einhorn is the latest victim of the
what-have-you-done-for-me-lately mentality among hedge fund
investors these days. Clients redeemed about $400 million from
Einhorn’s Greenlight Capital at the end of June,
according to the Wall Street Journal. The
firm’s flagship long-short fund lost 2 percent in
the first half of the year, while the Standard &
Poor’s 500 stock index surged 9.3 percent. The
sometime-activist fund is also well below its high-water mark
after losing 20.2 percent in 2015. Last year it made back less
than half the loss, gaining 8.4 percent.
Investors who most recently got into
Greenlight’s funds are especially unhappy. If
you recall, Greenlight reopened to existing investors on Nov.
1, 2014 and new clients on Dec. 1, 2014. Greenlight this year
has been especially hurt by shorting several of the stocks it
disclosed holding in what it calls its "bubble basket." For
example, shares of Amazon.com gained about 31 percent in the
first half of the year, Tesla surged more than 50 percent, and
streaming video giant Netflix returned nearly 30 percent for
the year. The WSJ also speculates that investors are concerned
that Einhorn is currently going through a divorce.
JANA Partners favorite Tiffany jumped 1.7 percent, to close
at $94.04, after the high-end jewelry retailer tapped
Alessandro Bogliolo as chief executive officer. He was formerly
an executive at Italian luxury retailer Bulgari for 16 years.
At the end of the first quarter, Tiffany was the largest long
position of Barry Rosenstein’s JANA, which was the
company’s fourth-largest shareholder. The stock is
up more than 21 percent this year.
Shares of Snap rebounded sharply, gaining about 3 percent to
close at $15.69, after Stifel Nicolaus upgraded the shares from
hold to buy, asserting that some worries about the company are
overblown, according to CNBC.
"Competition from Instagram remains a chief concern for
investors, though recent app download trends appear healthy in
key ad markets, leading us to believe near-term risks to
revenue-generating [daily active users] may be overstated," the
analyst report stated, according to CNBC’s
account. "Despite concerns in the market and persistent
comparisons to Twitter, we believe Snap’s business
remains on track fundamentally as it continues to develop
innovative consumer products and increasingly sophisticated
tools for advertisers."