Greenlight Capital suffered a setback in June. David Einhorn’s hedge fund lost 3.1 percent, compared with a 3.5 percent gain for the S&P 500. It managed to climb nearly 3 percent in the second quarter, but its 7.8 percent rise over the first half lags the benchmark, which was up 14.5 percent over the same period.
It’s unknown exactly what drove Greenlight’s June loss and if the short book or macro strategy played a role.
In the first three months of the year, macro accounted for 3.1 percentage points of Greenlight’s 4.9 percent net gain, according to the firm’s first-quarter letter, obtained by Institutional Investor.
Most of Greenlight’s largest longs either were flat or declined in June, but not nearly as much as the fund itself. Several are also down for the year.
Among the firm’s largest longs, Alight was the biggest loser for the month. The software-based provider of health and wealth benefits and payroll solutions for large enterprises was down 4.8 percent in June and 13.5 percent for the first half of 2024.
No. 2 long Brighthouse Financial, an annuities seller, was off 2.6 percent for the month and down 18 percent for the year. Retailer Office Depot was flat last month but down 30 percent in the first half.
Otherwise, Greenlight’s June decliners among the largest longs were up for the first six months.
For example, IT infrastructure services provider Kyndryl Holdings, the third-largest U.S.-listed long at the end of the first quarter, fell 1.1 percent in June but climbed 26.5 percent for the year. Tenet Healthcare, an operator of hospitals and ambulatory surgery centers, dropped 1.6 percent last month but was the big winner in the first half, surging 76 percent. Coal producer CONSOL Energy was down for the month and up 1.5 percent for the first half.
Greenlight’s gold plays also declined somewhat last month but are up for the year. For example, the firm’s bet on gold itself was down 0.7 percent for the month but up nearly 13 percent for the year. Exchange-traded fund SPDR Gold Shares was flat for the month and up more than 12 percent for the first half.
Several of Greenlight’s largest positions did make money in June. Most significantly, Green Brick Partners, a homebuilding and land development company and Greenlight’s largest long, jumped 4.8 percent in June and 10.2 percent for the first half of the year.
PENN Entertainment, an operator of integrated entertainment, sports content, and casino gambling, was up 10.6 percent last month. Greenlight told clients in the first-quarter letter it had established a new medium-size position in the stock in the first quarter at an average price of $22.69. It closed Friday at $19.36, for a paper loss of 14.7 percent.