Greenlight Capital Investor Letter 2014 Q4

Greenlight Capital’s 2014 Q4 investor letter is out. David Einhorn‘s long-short partly activist hedge fund returned 8% in 2014 after gaining 5.6% net of fees during the fourth quarter. The most interesting point made in this investor letter is about oil prices and how he avoided huge losses by following Zach Schreiber’s advice. Here is what Einhorn said about Zach Schreiber:

“At last year’s Sohn Investment Conference, Stan Druckenmiller introduced Zachary Schreiber as a rising star. Zach lived up to the praise with a compelling presentation predicting a sharp fall in WTI oil prices, leading us to review our exposure. In mid-June we sold enough WTI oil futures to offset the subsequent declines in our positions in Anadarko, BP, McDermott, and National Oilwell Varco, all of which we effectively exited at their higher June prices.”

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David Einhorn stated in the investor letter that AAPL, a short position in X, yen put options, and crude oil shorts were among the fund’s most profitable bets during the fourth quarter. The biggest loser in Greenlight’s portfolio was Civeo (CVEO).