Sun, Dec 21, 2014
A A A
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und