Sat, Oct 10, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Greenlight Capital blasts Fed in letter, fund posts +9.4% in Q3 (+13.2% YTD)

Thursday, October 25, 2012

Bailey McCann, Opalesque New York:

David Einhorn's Greenlight Capital Funds posted a positive third quarter of +9.4%, according to a letter to investors obtained by Opalesque. The US-based hedge fund is up overall on the year +13.2%. The firm overall is believed to have over $7bn in assets.

In the letter, Einhorn blasted the US Federal Reserve saying that he expects to see another recession and that the Fed has announced "desperate measures in non-desperate times." He goes on to say that, "central bankers have been on a money printing spree," and that when the US does go into a recession federal and monetary officials will have few tools to deal with the downturn.

In terms of the broader global economy, the letter expresses concerns about the slowdown in Asia and the disappearance of global corporate earnings growth. He notes that while the ink in central bank printing presses may be "endless," the market tolerance for this global economic dynamic will not be.

Einhorn is incredulous at assurances from Fed Chief Ben Bernake that easing will continue even if global economic conditions improve. He writes that this view seems to suggest that cutting back the current monthly $40bn spend on mortgage backed securities would be considered unnecessary tightening, regardless of the risk associated with creating yet another bubble.

Greenlight's views on the economy were echoed by some of his cohorts today at the Buttonwood Gathering, currently underw......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  2. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  3. Manager Profile - Pimco alternative funds flourish as 30-year bond rally fades[more]

    From Inside Pacific Investment Management Co., the bond behemoth that lost two chief investment officers last year and saw almost $500 billion of client money leave, a hidden profit engine is easing some of the pain. For more than a decade, Newport Beach, California-based Pimco has qu

  4. Niche Investing - Art investment funds: Attracting institutional and other new investors[more]

    From The Deloitte/ArtTactic Art and Finance Report 2014 (the "Art and Finance Report") noted that the "global art investment fund market was estimated to be worth at least $1.26 billion in the first half of 2014." This seems almost inconsequential when juxtaposed with the $54 billion of

  5. DoubleLine’s Jeffrey Gundlach warns of another round of market shakedown[more]

    Komfie Manalo, Opalesque Asia: DoubleLine Capital co-founder Jeffrey Gundlach is painting a bleak future as he warned that the U.S. equity market and other risk markets, such as high-yield "junk" bonds, are facing another round of selling pressure. Gundlach said in an interview with