market folly

David Einhorn's hedge fund firm Greenlight Capital is out with its second quarter letter.  During the quarter, they lost 4% and thus far for the year are down 2.8% net.  Their average exposure was 111% long and 79% short.

Their five largest longs in alphabetical order are: AerCap (AER), Bayer (Germany: BAYN), CONSOL Energy (CNX), General Motors (GM), and Mylan (MYL).

They also point out short positions in their 'bubble basket' include Amazon (AMZN), athenahealth (ATHN), Netflix (NFLX), and Tesla (TSLA) that have moved against them.

The letter walks through some of their thoughts on each.  While Greenlight is long one auto manufacturer (GM) and short another one via Tesla, they don't do pair trades.

Also, the letter highlights that Greenlight started a new long in Toshiba (Japan: 6502) and outlines their thesis there.

Lastly, they also note they've sold their longs in Altice and Time Warner (TWX), as well as covered their decade-long short position in the credit rating agencies and their short of Mallinckrodt (MNK).

Embedded below is Greenlight Capital's Q2 letter:

 

For more from this manager, be sure to check out Einhorn's presentation on shorting Core Labs.