Remember back in June when David Einhorn went after Lehman Brothers, the bank whose sudden deflation stunned Wall Street this month? Now it’s the hedge fund industry’s turn to come under scrutiny. Einhorn, who manages Greenlight Capital, a $6 billion, New York–based hedge fund firm, zeroed in on how Lehman was valuing so-called Level III assets — illiquid and hard-to-value holdings like loans to troubled real estate developers, for instance.
