David Einhorn made only 2% gain in 2017

Discussion in 'Wall St. News' started by helpme_please, Jan 1, 2018.

  1. When I hear Mr Einhorn speak, I know for sure he has a brain 10x better developed than mine. My admiration is sincere. Just search for david einhorn on youtube and you will probably agree with me. I am surprised that he made only 2% gain in 2017.

    The strangest thing about 2017 is the under-performance of smart hedge fund managers. Several closed down. What kind of bull market is this? Why can't the smart guys perform in this idiot market?

    https://www.bloomberg.com/news/arti...ge-fund-rises-2-in-2017-with-december-advance

    The gain boosted the fund’s return to 2 percent for 2017, according to an email to clients that was seen by Bloomberg News. The fund, which mostly makes wagers on stocks, struggled to profit in a year where the S&P 500 Index returned more than 20 percent, including reinvested dividends.
     
    murray t turtle likes this.
  2. fordewind

    fordewind

    dont give a damn...there`s only me, myself and i that matters.look at me how great i am!admire me!you heard that!
     
    Handle123, cdcaveman and Money Trust like this.
  3. Most likely because he was "working around a short-side bias"... significant size shorting, trying to catch what he thought would be a big down move.

    When your bias isn't the same as the market's, you struggle.

    You'll see that on the other side some day (soon, maybe?)... when the BTFD crowd gets torn a new one.
     
    themickey likes this.
  4. Handle123

    Handle123


    This is where retail have an edge, many Hedge funds research is based on Math, so many started in the boom of using computers, and how many use charting? Many will not include charting, often wonder if any read Edwards and MaGee charting.

    You have to ask yourself, do Hedge funds hedge? So if they did, they spent 18 percent to put on hedges to come out with 2%, come on, Hedge funds don't hedge or they dumber than a post.

    And if you going to sell short, makes sense to do so when those stocks in a downtrend. Stocks so much different than commodities, but do Hedge funds know this? Commodities have extremes like zero and ? based on demands of supply OR based on governments for debts and currencies, but stocks have no limits other than zero where Sears Holding one day will end up.
     
  5. Choose right...you're a Hero -- Choose wrong, you can still be a hero...if you realize it and react accordingly,
    [​IMG]
    Many people fail at this simple, yet complex dynamic concept.
    Retail, smaller traders have it easier...you're not locked/stuck in a position, with insurance costs, sunked costs hedged overhead. use your head. Head 2018
     
    Last edited: Jan 1, 2018
    murray t turtle likes this.
  6. toc

    toc

    Since inception inMay 1996, Greenlight Capital, L.P. has returned 1,902% cumulativel
    y or 16.5% annualized,both net of fees and expenses.

    https://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/01-overflow/Einhorn.pdf

    Above is a very good performance number. We do not see 16% annual returns since 1996 quite often. Einhorn missed the bulls of 2017, but still squeaked out 2%.

    We do not know the each year's returns and if several 50% annual gains were made in early part when fund was billion in AUM, then those early gains are helping them out.

    More research shows they lost in 2008 and 2015 and rest were above in positive mark. They made 9.4% vrs SP500 12% in 2016. They have 9 analysts and 1 trader in team and also invest in overseas markets.

    $10B gives them $200M in fees alone. These guys should have 40 analysts, in fairness to the investor dollars. Am sure numbers will get better with more mind power at work.
     
    Last edited: Jan 1, 2018
  7. zdreg

    zdreg

    maybe. maybe not. markets have a mind of their own to fool the experts,
     
  8. Daal

    Daal

    His short book was too big given the macro/market outlook for 2017
     
    murray t turtle likes this.
  9. Most hedge funds are in that business to collect "2 & 20" (if they still get that).. when they're really just long/levered long funds... like many ETFs.
     
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  10. %%
    He may do better than that in 2018; GM pays> than that in dividend yield :cool:
     
    #10     Jan 2, 2018