Greenlight Capital rose 36.6% in 2022, recouping losses that have plagued the fund since 2015, reports an article in Bloomberg. The $2 billion fund lost 20.4% in 2015 and 34.3% in 2018, but ended last year with a 3.5% gain, according to an anonymous source who is familiar with the fund.
Greenlight Capital was founded by David Einhorn in 1996 and its flagship fund is concentrated on undervalued stocks, which have underperformed in the years leading up to 2022. However, in the wake of last year’s tech rout, value shares have been outperforming growth, giving a much-needed boost to the fund. In a letter to investors last year, Einhorn said he had pivoted from “cautious” to “bearish” in his wagers. One of the most high-profile long bets he made was that Elon Musk would ultimately go through with his pledge to buy Twitter for the $44 billion that he initially agreed to. Musk then devoted months to trying to destroy the deal but ultimately went through with the sale, becoming owner and CEO of the social-media giant before stepping down as the latter in the wake of massive employee walkouts and user dissatisfaction.
Given last year’s big boost to the fund, Greenlight can now reinstate full fees for any investor who weathered the losses suffered by the fund over the last several years, the article reports. While Bloomberg reached out to Greenlight for comment on the fund’s recent performance, the firm’s spokesperson declined to comment.