Greenlight Capital has shed all of this year’s gains after suffering another large monthly loss.
The long-short hedge fund headed by David Einhorn dropped 4.1 percent in July and is now down 0.1 percent for the year, according to someone who has seen the results. The firm declined to comment.
Greenlight undoubtedly continues to be hurt by its overall bearishness, negative market bets, and hedging positions in an otherwise surging stock market. In his first-quarter letter, Einhorn made it clear he was bracing for a new bear market. It worked out earlier in the year, as Greenlight gained more than 12 percent through April. Since then, the hedge fund has lost money for three straight months.
The stock market has shown remarkable resiliency in the face of President Trump’s on-again, off-again tariff policy.
It is unknown how Greenlight was positioned at the end of the second quarter or how bearish or bullish it was. And it won’t be clear for a couple of weeks whether Greenlight made changes to its U.S. long stock portfolio in the second quarter. But three of its largest long positions as of March 31 were down by double-digit percentage rates in July alone.
They include Teck Resources, a diversified natural resources company, which dropped nearly 20 percent for the month. Annuities seller Brighthouse Financial was down nearly 13 percent. And Kyndryl Holdings, an information technology infrastructure services provider, was off by 10 percent.
Two top-five holdings — both traded overseas — were down by smaller amounts in July. Belgian chemicals company Solvay declined by more than 6 percent, and German specialty chemicals company Lanxess fell more than 4 percent.
Greenlight did have one significant winner among its top-five holdings last month: Shares of energy giant Core Natural Resources were up nearly 6 percent.
