market folly

David Einhorn's hedge fund firm Greenlight Capital has returned 21.5% annualized net of fees since inception in May 1996. For 2010, his various hedge funds returned 12.5%, 14%, and 15.9%. You can see how that compares to other managers in our 2010 hedge fund returns summary.

Einhorn was positioned defensively last year due to the uncertain economic environment and such positioning led to slightly under-performing the market indices.

New Stakes in BP (BP) and Sprint (S)

During the fourth quarter they started a new position in BP (BP) at an average price of $41.18.

Greenlight also started a new stake in Sprint Nextel (S) at an average price of $4.46. We wrote about Einhorn's Sprint position last month.

Top Five Positions (in alphabetical order)

- Arkema (France: AKE or on the pink sheets: ARKAY)
- Ensco (ESV)
- Gold
- Pfizer (PFE)
- Vodafone Group (VOD)

Embedded below is Greenlight Capital's year-end letter to investors:



You can download a .pdf copy here.