The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Greenlight Capital returned -4.3% in Q2 2026 despite positioning conservatively for capital preservation, with losses driven by costly macro bets on gold and interest rates that detracted nearly 4% net. The manager views the SpaceX IPO at $1.75 trillion valuation as potential evidence of a speculative market top, criticizing investment-grade ratings for a company with no free cash flow history. New Fed Chairman Kevin Warsh's emphatic anti-inflation stance may create self-fulfilling disinflation without rate hikes, and Greenlight is positioned accordingly despite year-to-date losses from disagreeing with market expectations. The fund initiated five new positions in undervalued companies including Fortune Brands Innovations at 8x earnings with new turnaround-focused leadership, PayPal at 8x earnings subsequently receiving a takeover bid, and Versigent targeting $1 billion cumulative free cash flow representing one-third of market cap. Three positions were exited profitably with IRRs ranging from 30% to 157%. The portfolio maintains 105% long and 63% short exposure, focusing on operational improvements and free cash flow generation while hedging against continued market speculation.
Greenlight identifies deeply undervalued companies trading at significant discounts to intrinsic value, focusing on operational turnarounds, spin-offs, and free cash flow generation while maintaining hedges against market speculation and macro risks.
Greenlight expects their conservative positioning to trail in strong markets but maintains focus on capital preservation. The manager disagrees with market expectations for Fed rate increases and is positioned to recover macro losses if Chairman Warsh's anti-inflation stance proves sufficient without policy changes. The SpaceX IPO may mark a speculative top, though the manager acknowledges that twice a silly price isn't twice as silly and stocks can continue rising. New positions in undervalued companies with operational improvement opportunities and strong free cash flow characteristics provide upside potential independent of market direction.
As of Aug 18, 2026
David Einhorn co-founded Greenlight Capital in May 1996 and serves as President and primary portfolio manager. The firm employs approximately 25-26 people with 42% being investors, demonstrating a lean but experienced investment team. Key personnel include Jeffrey A. Keswin as co-founder, Harry Brandler as Chief Financial Officer, and Daniel Roitman as Chief Operating Officer. Since inception, the fund has generated cumulative returns of 3,406% or 12.7% annualized net of fees, compared to the S&P 500's 1,693% cumulative return. The firm has produced $6.1 billion in total investor earnings net of fees since inception.
Greenlight Capital's investment philosophy emphasizes intrinsic value, defined as the present value of expected cash flows discounted for risk, liquidity, and other factors. The firm believes that an investment approach that emphasizes intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. The primary investment objective is to achieve capital appreciation by buying securities with trading values materially lower than their intrinsic values and by selling short securities with trading values materially higher than their intrinsic values. The firm exploits short-term market inefficiencies caused by technical, psychological, and liquidity factors.
Lead Portfolio Manager
High Conviction Bullish
Market Conviction
Growth Outlook
Market outlook remains high conviction: Greenlight delivered 6.5% returns in Q1 2026 through defensive positioning amid Iran war uncertainty. The fund profited from gold, healthcare turnarounds, and energy shipping while...
Risk Appetite
Risk appetite posture is high conviction: Greenlight delivered 6.5% returns in Q1 2026 through defensive positioning amid Iran war uncertainty. The fund profited from gold, healthcare turnarounds, and energy shipping while...
Capital Deployment
Greenlight initiated five new positions during the quarter (Comcast, Fortune Brands, Primo Brands, PayPal, Versigent) while exiting three positions, representing modest net deployment activity. However, the fund closed to new investment on July 1, suggesting limited capacity for further deployment. The manager describes positioning conservatively for capital preservation and does not indicate material cash level changes or aggressive scaling of positions. The activity represents selective rotation and modest deployment rather than aggressive capital deployment.
Forward Guidance
Forward guidance signal: Greenlight delivered 6.5% returns in Q1 2026 through defensive positioning amid Iran war uncertainty. The fund profited from gold, healthcare turnarounds, and energy shipping while...
Language Signal
The letter contains substantial bearish language around market speculation (meme-ification, broken markets, manipulation, insult to value investing, speculative top) and risk discussion. However, this is balanced by bullish language around specific new positions (significantly undervalues, attractive, opportunity, strong brands, exceptional track record, substantial upside). The SpaceX discussion and macro concerns dominate the narrative tone, creating a net bearish language balance, but the detailed bullish cases for individual positions prevent a more negative score.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Greenlight delivered 6.5% returns in Q1 2026 through defensive positioning amid Iran war uncertainty. The fund profited from gold, healthcare turnarounds, and energy shipping while...
Opportunity Density
Greenlight identifies five new investment opportunities during the quarter with detailed theses, suggesting selective but meaningful opportunity availability. The manager finds deeply undervalued situations in building products, payments, media, consumer goods, and auto parts. However, the emphasis on capital preservation, conservative positioning, and closing to new investment suggests opportunities require selectivity rather than abundance. The manager can find compelling ideas but characterizes the environment as requiring patience and discipline given market speculation in other areas.
Time Horizon
Greenlight demonstrates a multi-year investment horizon with specific catalysts expected over 1-3 years. Versigent targets are set for end of 2028 (2+ years out), Fortune Brands thesis depends on new management executing over time, and the manager discusses mid-cycle margin targets rather than near-term events. However, the fund also discusses quarterly results, near-term M&A activity (PayPal bid), and spin-off catalysts occurring within the quarter. The horizon is meaningfully longer than tactical but shorter than the permanent capital/decade-plus timeframe, fitting the 0.65-0.84 range for multi-year theses with some catalyst dependency.
Top Conviction Themes
Key Catalysts
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