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Greenlight Capital LP, Greenlight Qualified LP and Greenlight Capital Offshore returned 2.9%, 2.7% and 1.9% in 2011 respectively, according to an investor letter obtained by Opalesque. Greenlight Capital LP has returned 1,685% since inception in May 1996, or 20% annualised.

By comparison, the Morningstar MSCI Composite Hedge Fund Index ended the year down 2.7%.

"Never has so much work gone into making 2%," says the letter. "For all its ups and downs, dramatic headlines and extremely high daily volatility, the market ended the year just about where it started."

The firm found "very few places to make money". Its largest winner was a short on First Solar, the worst performer in the S&P500. Greenlight also invested in various CDSs on the European sovereign debt. The biggest loss came from, as in the previous year, bets on a weakening of the Yen.

The global environment is very complicated, comments New York-based Greenlight Capital. On the one hand, the Fed took a momentary break from quantitative easing and inflation in oil and food abated. On the other, Asia may be in worse shape than a year ago and could be a drag on the world economy in future. Finally, the European crisis is not getting any better, despite the announced meetings and solutions (which oftentimes won’t work) while the crisis deepens. "Lather. Ri......................

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