Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

David Einhorn’s Greenlight Capital’s Q1 2019 Investor Letter

David Einhorn’s Greenlight Capital just published its Q1 2019 Investor Letter – a copy of which you can download below. In the letter, among other things, the fund disclosed its biggest long positions at the end of the quarter, which were AerCap Holdings, Brighthouse Financial, CONSOL Coal Resources, General Motors, and Green Brick Partners. The most important part of the letter was definitely its harsh critique of Tesla Inc. (TSLA), which the fund has been shorting for a couple of years. David Einhorn wrote that he thinks the company is on the brink of failure seeing its extreme price cuttings, closing of its service centers, serious safety issues, etc. Greenlight Capital also reported return of 11.0% for the quarter trailing the S&P 500 which brought back 13.6%.

“2019 has started off on a good note. The Greenlight Capital funds (the “Partnerships”) returned 11.0% for the quarter, almost reversing the loss in the fourth quarter of 2018. The S&P 500 returned 13.6%, which also almost reversed its fourth-quarter 2018 result.

Nonetheless, it continued to be a challenging environment for our investment style with growth stocks performing much better than value stocks. In the context of this headwind and a sizable short portfolio, we are pleased with the quarterly result.

Last year we only had one position contribute more than 1% to our performance. This quarter we had eight winners that large. Of the six longs we wrote about at year-end, five – AerCap Holdings (AER), Brighthouse Financial (BHF), Deutsche Pfandbriefbank (Germany: PBB), General Motors (GM) and Green Brick Partners (GRBK) – were the biggest gainers. We also had significant gains in Altice USA (ATUS), Tempur Sealy International (TPX) and on our Tesla (TSLA) short. While we did a good job in reducing our short exposure to the most volatile names during the fourth-quarter dip, we still experienced losses on our short Assured Guaranty (AGO)/long Puerto Rico GO bonds position, the Bubble Basket short, and Netflix (NFLX) puts. Overall, our longs performed a little better than the market, our shorts lost money but went up much less than the market, and macro made a small profit. “

You can download a complete copy of Greenlight Capital’s Q1 2019 Investor Letter here:

Greenlight Capital 2019 Q1 Investor Letter

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.