Greenlight Capital suffers fresh losses
Billionaire investor David Einhorn told clients that his Greenlight Capital hedge fund, which manages the investments for reinsurer Greenlight Re, suffered fresh losses in June and has now dropped 18.3 percent this year, according to a Reuters report.
“We are obviously frustrated by our results,” Einhorn wrote to clients in a performance update seen by Reuters. In June 2018 the fund fell 7.1 percent, the update said.
Many of Greenlight’s top holdings such as General Motors fell. Einhorn has also been betting against a number of stocks including electric vehicle maker Tesla which rose in June.
Greenlight Re’s investments are managed by Einhorn's Greenlight Capital hedge fund. The Cayman Islands-based reinsurer reported a loss for the first quarter of 2018 driven by investments.
Greenlight Re posted a net loss of $142.8 million for the first quarter of 2018, compared to net income of $8.4 million for the same period in 2017. The reinsurer was impacted by net investment losses of $145.2 million compared to net investment income of $11.6 million in the first quarter of 2017.
The investment loss of the quarter overshadowed an improved underwriting performance and a quarter combined ratio of 98.3 percent, Greenlight Re CEO Simon Burton commented the results.
Overall, Greenlight Re reported underwriting income of $2.5 million, compared to an underwriting loss of $0.2 million in the first quarter of 2017.
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