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UPDATE 1-Einhorn's Greenlight Capital up 4 pct in August
September 1, 2010 / 5:34 PM / in 7 years

UPDATE 1-Einhorn's Greenlight Capital up 4 pct in August

* Greenlight Re’s investment portfolio returns 4 pct

* Gold, Pfizer, CIT and Ensco largest holdings

* Gold surges more than 6 pct to record monthly high (Updates with Greenlight no comment in paragraph three)

By Jennifer Ablan

NEW YORK, Sept 1 (Reuters) - Hedge fund manager David Einhorn’s Greenlight Capital outperformed U.S. equity markets in August, returning 4.1 percent net of all fees and expenses, according to a posting on its website on Wednesday.

According to Greenlight Capital Re (GLRE.O), its investment portfolio is up 1.4 percent so far in the third quarter. As of Aug. 31, the largest disclosed long positions in Greenlight’s investment portfolio were CIT Group (CIT.N), Ensco Plc (ESV.N), Pfizer (PFE.N), and Vodafone Group (VOD.L), and gold, the website said.

Greenlight did not disclose the weighting in its portfolio between equities and other assets. Greenlight declined to comment.

Einhorn, who was among the first to publicly warn about Lehman Brothers, has made a winning bet on gold, driven by a concern for a potential depreciation in paper currencies because of central banks’ looser lending policies.

Gold has surged more than 6 percent in August, its biggest monthly gain since November, to $1,244 per ounce. Spot gold XAU= hit a high of $1,249.90 an ounce on Aug. 31.

Einhorn’s Greenlight Capital had $6.8 billion of assets as of Jan. 1, 2010.

Einhorn’s biggest loser during the second quarter, Pfizer, rallied more than 6 percent in August. Shares of the drug maker, which in the second quarter fell from $17.15 to $14.26, on Wednesday were at $16.33 in late morning trade.

Einhorn, in a letter to clients in July, had said he expected Pfizer’s shares to trade at a higher multiple than they had been, even though analysts had trimmed their 2010 earnings outlook due to a weaker euro.

In the second quarter, Jeff Altman of Owl Creek Asset Management, another widely followed hedge-fund investor, also snapped up shares of Pfizer. For more details please click on [ID:nN25145679]

Overall, August was not kind to U.S. equity investors.

The Dow Jones industrial average .DJI was down 4.3 percent for the month, and the benchmark Standard & Poor's 500 index .SPX fell 4.7 percent. The Nasdaq Composite .IXIC dropped 6.2 percent.

In the debt market, however, long-maturing Treasury bonds gained 6.83 for the month.

Only 17 percent of hedge fund managers are bullish on the S&P 500, according to the TrimTabs/BarclayHedge Survey of Hedge Fund Managers for August. About 47 percent of the 104 hedge fund managers the firms surveyed in the past week were bearish on stocks, up markedly from 33 percent in July. (Editing by Kenneth Barry)

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