Greenlight Capital investors lost 7.7% in June and Greg Zuckerman wrote Greenlight’s obituary in a WSJ article. You don’t have to worry if you don’t have free access to WSJ because CNBC’s Leslie Picker summarized the article below:
Unfortunately, CNBC didn’t do any additional research about why Greenlight lost 7.7% in June, so we decided to spend a few minutes to take a look at the performance of Greenlight’s 13F stock picks.
Greenlight Capital’s top 10 holdings account for nearly 80% of its 13F portfolio. General Motors allocation takes more than 20% of the portfolio and the stock lost 6.9% in June. Brighthouse Financial allocation corresponds to 14% of the portfolio and this stock lost 14.9% in June. Overall, Greenlight Capital’s top 10 holdings delivered an average weighted loss of 7.5% in June. Nine out of 10 of these stocks lost value in June. This explains why Greenlight investors suffered in June.
We only had 3 trading days so far in July, but Greenlight’s top 10 13F stock holdings averaged a gain of 1%.