Greenlight Capital has sharply cut its net exposure. The
long-short hedge fund, managed by the firm of the same name,
entered April at 29 percent net long — 111 percent
long and 82 percent short. This is way down from its 51 percent
net long position just three months earlier.
The fund lost 13.6 percent in the first quarter. In its
first-quarter letter to clients, obtained by Alpha, David
Einhorn’s firm says that just due to losses his
funds’ exposure would have risen to 148 percent
long and 105 short, for a net long position of 43 percent.
"So far, the exposure reduction has been helpful," the
letter added, noting that year-to-date trading has led
Greenlight to avoid an additional 1.5 percent of losses. At
this magnitude, investors probably wouldn’t have
noticed the difference.
Greenlight also said in the letter that it
closed out two long positions and two short positions. For
example, it unloaded its stake in Chemours, the spinoff from
DuPont, at $31.62 per share. It took its stake in the fourth
quarter of 2015 at an average price of $6.97.
The hedge fund also sold its shares in Uniper, a German
energy company spun out from E.ON. After the Finnish company
Fortum made a bid for the company, Greenlight sold its stake at
nearly 23 euros per share, more than double what it paid in the
third quarter of 2016.
On the short side, Greenlight covered two losing bets:
Swedish technology company Hexagon and equipment rental company
Shares of streaming video company Spotify Technology closed at $149.60
on Tuesday, up 13.33 percent in its first day of trading
after an unusual initial public offering (IPO). Unlike most
IPOs where the company and sometimes insiders sell shares to
the public, in this case shares of the Swedish company simply
started to trade in what is called a direct listing. Chase
Coleman’s Tiger Global Management owns more than
12.8 million shares, or 7.2 percent of Spotify’s
total ordinary shares, according to a regulatory filing dated
April 3. Of that sum, 1.255 million shares were registered. The
shares are majority owned by Tiger Global Private Investment
Partners IX, L.P. (PIP IX). In January, we reported that D.E.
Shaw sold its stake of 12,000 shares in Spotify.
Point72 Ventures was one of four investors to lead the $21
million Series B funding of DriveWealth, a fledgling financial
technology company, according to businessinsider.com. Point72 is the
venture capital unit of Steven Cohen’s family
office, Point72 Asset Management. Another one of the investors
is Raptor Group Holdings, the family office of Jim Pallotta, a
previous member of the Rich List when he was a vice chairman of
Paul Tudor Jones II’s Tudor Investment
Corporation, where he managed over $10 billion in long-short