- Greenlight Capital, run by David Einhorn, gained 14% in 2019, Bloomberg reported Monday. The S&P 500 gained 29% in the same year.
- While the hedge fund trailed the broader market, it rebounded from 2018 when his main fund lost 34%.
- Einhorn's short positions on Tesla and Netflix may have weighed on his yearly returns in 2019.
- Read more on Business Insider.
David Einhorn's Greenlight Capital trailed the S&P 500 in 2019, but still ended the year in the green after its worst performance ever in 2018.
Greenlight returned nearly 14% in 2019 after dipping 0.3% in December, Bloomberg reported Tuesday. The S&P 500 rose 29% in the same year, posting its best annual performance since 2013.
His main fund had declined 34% in 2018, the worst performance since its creation in 1996. After, Einhorn called 2018 "the year where we didn't get anything right" and reworked his portfolio at the start of 2019.
Still, a few of Einhorn's notable short bets may have weighed on returns in 2019. He's had a long-time short wager against Tesla, which rallied 26% in 2019. He is also short Netflix, which gained nearly 21% in the same timeframe.
Short bets also weighed heavily on Russell Clark's Horseman Global Fund, which plunged 35% in 2019. It's the latest in a rough time for the industry, as more funds have closed than opened for the fifth year in a row. As the record bull market trudges on, investors are dumping hedge funds in favor of cheaper investment vehicles that capture better returns.
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