© Reuters. FILE PHOTO: David Einhorn,ÊPresident, Greenlight Capital, Inc. speaks through the 2019 Sohn Funding Convention in New York Metropolis, U.S., Could 6, 2019. REUTERS/Brendan McDermid
(Reuters) – Hedge fund supervisor Greenlight Capital mentioned on Tuesday its fund rallied 36.6% in 2022 in one among its greatest years ever, because of a worthwhile lengthy ebook and shorting expertise shares.
Massive tech and progress shares bore the brunt of a protracted rout final yr, worsened by aggressive rate of interest hikes that despatched the tech-heavy index down 33% in 2022.
“2022 was an exceptionally good yr,” Greenlight mentioned in a letter. “In some ways, it was our greatest ever and is most similar to 2001, the yr after the final expertise bubble popped.”
“In early 2021, we additionally recognized an actively-managed ETF of so known as ‘innovation’ shares that appeared to us to have considerably comparable traits to our bubble names.”
Earlier on Tuesday, CNBC reported that a part of Greenlight’s stellar efficiency was pushed by hedge fund supervisor David Einhorn’s bets towards progressive expertise shares like these touted by progress investor Cathie Wooden.
Greenlight mentioned it had no materials losers within the brief portfolio and can assessment the efficiency of its “bubble basket brief technique”.
Its letter outlined a bubble inventory as one which may fall a minimum of 80% after a standard valuation evaluation and nonetheless not seem low-cost.
