David Einhorn's Hedge Fund Greenlight Capital Unveils New Position ~ market folly

Tuesday, December 22, 2009

David Einhorn's Hedge Fund Greenlight Capital Unveils New Position

The London Stock Market News Service yesterday reported that David Einhorn's hedge fund Greenlight Capital has been busy yet again. Einhorn has started a brand new position in shares of F&C Asset Management (LSE: FCAM). They now own 16,450,119 shares which represents ownership of 3.4% of their shares outstanding. This is one of many positions Greenlight holds and you can view the rest of their portfolio here. For some macro insight from Greenlight Capital, check out their rationale behind storing physical gold.

Around the end of October, Einhorn's fund was up 30% year-to-date and had recouped all losses from last year. Greenlight is a $6 billion hedge fund that focuses on value investing with a focus on spin-offs and have seen solid annual returns of over 20%. To get a better idea as to how Greenlight constructs and researches their investment themes, we highly recommend checking out Einhorn's book Fooling Some of the People All of the Time: A Long Short Story. Typically, Greenlight approaches things by identifying mispricings in the markets and then proceeding from there.

Taken from Google Finance, F&C Asset Management plc (F&C) is "principally engaged in the business of asset management. F&C is an active international investor but with a client focus on the United Kingdom and Continental Europe. As of December 31, 2008, the Company had £98.6 billion of assets under management."

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