Hedge Fund Manager Einhorn Explains Why He Lost More Than 30% Last Year: ‘Nothing Went Right’ (CNBC)
Reflecting on his worst year ever, all-star hedge fund manager David Einhorn explained in a letter to investors why his hedge funds lost more than a third of its value last year. Einhorn said the losses have forced him to reopen the funds for new investments, a move not seen since 2014. His hedge fund firm, Greenlight Capital, lost 11.4 percent in the fourth quarter, bringing its yearly decline to 34.2 percent, the worst performance since Einhorn started the firm in 1996, according to the letter obtained by CNBC’s Scott Wapner.
Kerrisdale Says Qualcomm’s Stock Could Shrink by Half: Report (Reuters)
BOSTON (Reuters) – Activist investor Sahm Adrangi, who cemented his reputation with successful bets against Chinese internet companies, said that he has taken a short position against Qualcomm Inc (QCOM.O), arguing the chip supplier’s stock price could shrink by half. Adrangi’s hedge fund Kerrisdale Capital published a research paper that suggests Qualcomm’s profits could be at risk as the company faces lawsuits, especially one in the United States.
Hedge Fund Manager John Paulson Praises Trump Accomplishments, Says He Would Re-elect Him (CNBC)
Hedge fund manager John Paulson believes President Donald Trump has achieved much since taking office and remains a supporter of the Republican president. “Aside from the messaging, I think he’s accomplished a great deal and I’m supportive of him,” Paulson said in an “According to Sources” podcast. “Generally, I’ve been pretty supportive of the policies that he’s pursued and, you know, I’d be supportive of him again if he did run for president.”
Bridgewater’s CIO Warns the Markets Could be Worse Than Policy Makers Expect (Bloomberg)
Greg Jensen, co-chief investment officer of Bridgewater Associates, said he sees a more negative outlook for growth than the markets and policy makers. “While people have certainly diminished their growth expectations and you’re hearing all about that at Davos, we don’t think they’ve done it enough,” he said in an interview on Bloomberg TV Wednesday from the World Economic Forum. “Earnings expectations particularly in the U.S. are too high, and generally the Fed and other policy makers are still expecting stronger growth than we see.”
Greenlight’s David Einhorn Tells Investors How He Really Feels About Elon Musk (CNBC)
Greenlight Capital is still betting against electric car maker Tesla, and the hedge fund’s manager isn’t mincing words about his opinion of Elon Musk. In a quarterly letter to investors on Tuesday, Greenlight’s David Einhorn called Tesla a “bizarre situation” and called out CEO Musk on his recent run-in with the Securities and Exchange Commission. Musk reached a $20 million settlement last year with the agency over allegations he committed securities fraud when he announced on Twitter that he wanted to take Tesla private and suggested he had “funding secured” for such a transaction. A copy of Einhorn’s letter was obtained by CNBC’s Scott Wapner.