, founder of Greenlight Capital, announced yesterday that his Greenlight Capital L.P. fund returned 9.7% for the fourth quarter of 2011, bringing his full-year returns to 2.9%. Since the firm’s inception in May 1996, it has returned 10% annualized, net of fees and expenses. In his fourth quarter letter, Einhorn mentions that he established one new position, Dell (DELL
), and re-established a position in Xerox (XRX
). He also noted that he is still holding large positions in gold and gold miners.
Of their strategy in general, he said they want to own cheap stocks of good businesses largely in the U.S. “We are more net long equities than we have been in some time, as we believe that many stocks have reached a point where they are simply cheap enough to own even if some trouble awaits us. We are prepared for problems in Asia by continuing to speculate on a much weaker yen. We have hedged the currency on our European equities, and continue to believe that European sovereign bond prices will fall regardless of whether the crisis is resolved through sovereign default or money printing,” he said. Continue Reading »