Join the club, Greenlight. 2015 was a tough year for the stock picker. In the firm’s letter to its partners they discussed having three large losses in a single year (CNX, MU, and SUNE) and the overall inability of all their other ideas to produce any fruit.
Meanwhile, as if trying to be wrong on purpose, they were short the top two performing stocks in the S&P 500 (Netflix and Amazon).
Listen, I am not poking fun at these guys. 2015 sucked. It changed me (Read: Raul Is Swearing Off Stock Trading). This was the right move. Shifting my focus to improving my NASDAQ trading has paid-off big to start the year, even while my investments get kicked down the elevator shaft every day.
Eventually (and it always does) this volatility will be gone, and Einhorn and the Greenlight team can go back to winning. For now, the non-systemic risk of owning individual stocks is through the roof.
Here’s the first few pages of a tough-to-read letter from the Greenlight Capital team:
If you enjoy the content at iBankCoin, please follow us on Twitter
what an eloquent way to say ” sorry we lost 1/5 your money.”
I read that there are more hedge funds than Taco Bell stores in 2015. Prediction. There will be a Taco Bell / hedge fund reversion trade in 2016.
my favorite activist investor by far.
RIP his fund inflows