November 1, 2018 / 12:19 AM / 17 days ago

UPDATE 1-Einhorn's Greenlight scores small gain in October -investor

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BOSTON, Oct 31 (Reuters) - Billionaire investor David Einhorn’s hedge fund Greenlight Capital posted a small gain in October, when stocks tumbled, but is still nursing some of the industry’s biggest losses for the year, an investor said on Wednesday.

Greenlight Capital told investors late on Wednesday that its fund gained 1 percent in October and is down 25 percent for the first 10 months of 2018. A spokesman for the fund declined to comment.

Einhorn did not detail what made or lost money in the portfolio. But his last investor letter, which came out earlier this month, noted that Einhorn’s bet against electric car maker Tesla Inc. was Greenlight’s second biggest winner in the third quarter. Earlier in the year, the Tesla bet and other bets on carmakers weighed on returns.

Stocks tumbled in October, with the broad Standard & Poor’s 500 index dropping 6.9 percent. Although hedge funds are meant to protect capital during a sell-off, early indications suggest that many firms specializing in trading stocks suffered heavy losses in October.

Greenlight is traditionally one of the first firms to notify investors of its performance, often sending out a report only hours after trading has concluded for the month.

Reporting by Svea Herbst-Bayliss; Editing by Chris Reese and Leslie Adler

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