2017 was a year to forget for David Einhorn and Greenlight Capital. The fund returned just 1.6%, well below S&P500’s 19.4% gain. Things got even worse in January 2018. While the S&P500 rose 5.6% and registered its best January performance since 1997, Einhorn’s fund slumped 5.5%. “While we’ve never underperformed like this, our prior worst underperformance compared to the S&P came in March of 2000, which was a similar environment,” said Einhorn in a recent conference call. In his latest letter to investors, the billionaire investor mentioned that Greenlight Capital’s short positions were the biggest losers in 2017. Among them are bets against companies like Amazon.com, Inc. (NASDAQ:AMZN), which rose 56% in 2017, and Netflix, Inc. (NASDAQ:NFLX), which appreciated by 55% during the same period of time. If David Einhorn did not exit those positions, it may well be that the same stocks drove losses even higher in January.
The series of unfortunate events did not stop there, however. According to a recent report by Bloomberg, Greenlight Capital’s main hedge fund shed another 6.2% in February amid the broader market selloff. As a result, the fund’s losses have extended to 12.3% for the year. The S&P500 index lost 3.7% in February, but is still up 1.8% for the year. Insider Monkey has analyzed Greenlight Capital’s equity portfolio in search of stocks that might have been oversold during the recent market correction and present a buying opportunity.