David Einhorns Greenlight Capital was down 13.6% at the end of the first quarter, and while the billionaire investor doesnt quite know why, hes sure that his fund will recover.
In a letter to the clients of his hedge fund dated Tuesday, Einhorn said that he was confident that Greenlights portfolio could recover over time, according to Reuters.
While no single events or positions stood out as the culprit, markets hadnt been reacting rationally to news over the past weeks, Einhorn argued in the letter. Greenlight didnt immediately reply to a request for comment.
Read: This volatility ratio offers stock-market bulls a reason to be cheerful
Earlier, when Greenlight posted its worst January performance in 18 years, Einhorn said he had never underperformed like that.
In the year-to-date, the Dow Jones Industrial Average
has fallen 2.8%, while the S&P
is down 2.2% over the same period. The tech-heavy Nasdaq Composite
is up 0.6% on the year, according to FactSet.
Greenlights more prominent bets include going against Tesla Inc.
, Netflix Inc.
and Amazon.com Inc.
, the latter of which has been subject to much tweeting by President Donald Trump of late.
Netflix and Amazon were roughed up in Mondays rout, but remian up 47.3% and 19.1% in the year to date, respectively.
Read: Amazon not likely to pay higher Postal Service rates despite Trump attacks
Einhorn stressed that Greenlights investment thesis remained intact despite the losses and that the cutting of certain exposure helped stave of an additional 1.5% drop for the fund, the report said.
Quote References DJIA +389.17 +1.65% SPX +32.57 +1.26% COMP +71.16 +1.04% TSLA +15.05 +5.96% NFLX +3.38 +1.21% AMZN +20.06 +1.46% Show all references
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