David Einhorn, the president and founder of Greenlight Capital, recently issued his latest quarterly letter to investors. The hedge fund superstar had a quiet quarter from a profit and loss perspective, but still made several notable changes to his funds.
The Greenlight Capital funds posted a 1.5 percent decline in the first-quarter, net of fees and expenses. That comes after a 4.9 percent decline in the previous quarter. Einhorn said Micron Technology (NASDAQ:MU) was the only significant winner, while Green Mountain (NASDAQ:GMCR) was the only significant loser. Since inception in 1996, Greenlight Capital has returned about 19 percent on an annualized basis.
New long positions included SunEdison (NYSE:SUNE) and Conn’s (NASDAQ:CONN), but Einhorn also sold several names and provided a stern warning to investors. “Now there is a clear consensus that we are witnessing our second tech bubble in 15 years. What is uncertain is how much further the bubble can expand, and what might pop it. In our view, the current bubble is an echo of the previous tech bubble, but with fewer large capitalization stocks and much less public enthusiasm.”
Let’s take a look at five positions that Greenlight Capital closed during the first-quarter.