David Einhorn, President of Greenlight Capital, Inc., presents during the 2018 Sohn Investment Conference in New York City April 23, 2018.gained 27.7% in the first nine months of 2023, said he is “worried about the direction of the market,” bracing for higher oil prices and ready to buy beaten-down stocks.
Reporting some of his best returns in years, Einhorn said Greenlight’s funds gained 12.9% during the third quarter when the S&P 500 index lost 3.3%. The quarter’s biggest winners in Greenlight’s funds were CONSOL Energy, software, data and analytics company Black Knight and an undisclosed macroeconomic bet on declining stock prices and higher long-term interest rates, the letter said.
Looking ahead, Einhorn said he was being cautious at a time of war and the looming spectre of recession. “We are effectively on a ’buyers strike' again and did not establish any material long positions,” the letter said, referring to the fact the firm was cautious in making big new investments.The fund sold Capri Holdings, which was bought by Tapestry in August, and said it cut its exposure to U.S. consumers amid worries that spending could contract if prices keep rising in the wake of higher oil prices.