DOCSLIB.ORG

Value Investor Insight 2 INTERVIEW: David Einhorn

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Value Investor Insight 2 INTERVIEW: David Einhorn March 23, 2005 ValuThe Leading Authority on Value Investing eInvestor INSIGHT Big Misunderstandings Inside this Issue FEATURES Value investors generally seek cheap stocks and then try to understand why. David Einhorn asks why stocks might be mispriced, and then asks if they’re cheap. Investor Insight: David Einhorn Finding “special situations,” his aising money was a bit tough for now has some $3 billion in assets under bets on Freescale, M.D.C, Allied David Einhorn when he started management. Capital and more. PAGE 1 » Greenlight Capital in 1996, before Success has not diminished Einhorn’s R Investor Insight: John Lewis hedge funds were all the rage. “The indus- passion for finding mispriced securities Small-cap expert sees big oppor- try was not what it is today,” he says. and, as this issue’s interview makes clear, tunities in INVESTools, Boyds “Let’s just say people were not in big rush- holding management accountable to share- and eDiets.com. PAGE 1 » es to work with 27-year-old guys with no holders’ interests. See page 2 track record.” Behind the Numbers: LEAPS Starting small, Einhorn and his partner David Einhorn Whitney Tilson’s favorite invest- set up shop with a couple of computers in Greenlight Capital ment theme in years. PAGE 16 » 125 square feet of office space in New York Investment Focus: Seeks special City. Before long, Greenlight’s track record situations that might lead to general Uncovering Value: Nippon TV started to speak for itself. Today, after years investor misunderstanding – and mis- “You don’t see media companies of stellar returns, Einhorn is one of the pricing – of a company’s true value. trading at these levels.” PAGE 18 » Goes long or short based on the mag- hedge fund industry’s best-known and most nitude of difference between his esti- Of Sound Mind: Investor Nature successful investors. His company, from an mate of value and the market’s. People just can’t help but invest initial asset base of less than $1 million, with emotion. PAGE 19 » Editors’ Letter Adopting Market Orphans Is the imperial CEO dead? Hold the applause for now. PAGE 20 » Some 5,000 companies have market values less than $250 million, and many are ignored by the investment community. That’s music to John Lewis’s ears. INVESTMENT HIGHLIGHTS INVESTMENT SNAPSHOTS PAGE ohn Lewis’s timing couldn’t have been bet- ter for starting a value-oriented small-cap Allied Capital 7 Jhedge fund. He opened Osmium Partners Boyds Collection 13 in November 2002, just weeks after the begin- eDiets.com 14 ning of the current bull market, which has been Freescale Semiconductor 4 led by small-caps. “Everyone thought we were INVESTools 11 in the middle of a multi-year low and nothing Lanxess 9 was ever going to come back,” he says. “Value M.D.C. Holdings 5 was everywhere.” Osmium’s returns have far exceeded even Nippon Television 18 the rising small-cap tide, as Lewis applies his Renault 8 John Lewis “think like an owner” investing discipline Osmium Partners, LLC across an eclectic array of businesses, from Other companies in this issue: Investment Focus: With the eye of a investor education, to teddy bears, to online Anheuser-Busch, Bayer, Berkshire strategic corporate buyer, looks for com- diet programs. He leaves to others pursuit of Hathaway, Freddie Mac, Heartland panies ignored or shunned by the market Advisors, iVillage, KKR, Motorola, but with a sound core strategy and defen- the big-name glamour companies. “We focus New Century Financial, Nissan, sible niche. Many portfolio companies are on what we like to call two-stop-plane-ride STMicro, Tesco, Yahoo eventually bought out. companies.” he says. See page 10 www.valueinvestorinsight.com INTERVIEW: David Einhorn Investor Insight: David Einhorn Greenlight Capital’s David Einhorn explains how to look for market mispricings, what situations drive Greenlight to activism, and what he thinks the market is missing in David Einhorn Freescale Semiconductor, M.D.C. Holdings, Allied Capital, France’s Renault and Accidental Investor Germany’s Lanxess. Growing up in Milwaukee and going to You’ve said your investing style differs a particularly good view of what the college at Cornell University, David somewhat from that of traditional prospective performance of the busi- Einhorn never expected to become a value investors. How so? ness is likely to be. It may be due to professional investor. “I studied govern- ment at Cornell, and expected to get a David Einhorn: We take the traditional how the performance had been report- PhD and teach,” he says. But graduate value investor’s process and just flip it ed when a now-independent business programs in his field of choice, eco- around a little bit. The traditional was part of a larger company. It may be nomics, had few, if any, places for value investor asks “Is this cheap?” that strategies or capabilities have those without extensive undergraduate and then “Why is it cheap?” We start changed in ways that aren’t immediate- economics training, so Einhorn joined by identifying a reason something ly apparent. DLJ as an investment banker. Not liking might be mispriced, and then if we find We also find opportunities when it much after two years, he interviewed in 1993 for a hedge-fund analyst posi- a reason why something is likely mis- there is a large upheaval or rejection of tion and the rest is history. “I worked for priced, then we make a determination a particular company – or sometimes some very smart people, who actually whether it’s cheap. an entire industry – for reasons that are took the time to help and train me,” he obviously just plain old cyclical or oth- says. “I was very, very fortunate to find Explain the distinction. erwise based on what the investment that situation.” DE: If you’re looking for something fashion of the moment is. that’s cheap, you’ll probably do a vari- An example: Investors in retail com- ety of screens – on price-to-sales, price- panies are very focused on monthly think it’s mispriced, where we have a to-earnings, price-to-book, whatever – comparable-store sales, particularly good understanding of why it’s mis- to identify stocks that appear to be during the holiday season. It seems like priced, where we think the mispricing inexpensive. Once you have that list, at least every other year, particularly in is very large and the overall risk is very then you start to research if there are January, we’re able to find a retailer that small, we take an outsized position to good reasons the stocks deserve to be we really like that had negative compa- make sure we give ourselves the chance cheap, or if maybe there’s an invest- rable-store sales during Christmas and to be well compensated for getting it ment opportunity because they’re the stock trades down to seven or eight right. cheap without a good reason. We think times earnings. The company has a You’ve also developed a reputation as that’s the way most value investors clean balance sheet and it’s a nice ongo- somewhat of an activist investor. Is approach it. ing franchise. We have no idea how the that part of your strategy? We never do screens like that. We next Christmas will go, but if it goes start by identifying situations in which okay, the earnings will be higher and we DE: Activism for us is Plan B. In cases there is a reason why something might will then get a much better multiple on where we’ve been activists, we’ve gen- be misunderstood or mispriced, why those earnings. We’ve been through that erally been passive investors for a good it’s likely investors will not have cor- before with Circuit City and Foot period of time first. But while it isn’t rectly figured out what’s going on. Locker. our goal, when something goes serious- Then we do the more traditional work ly awry, we won’t hesitate to try to You tend to make a few very big invest- to confirm whether, in fact, there’s an effect change when we feel it better ment bets, why? attractive investment to make. protects the interest of the partnership DE: We believe in constructing the than exiting. So you’re often looking for special sit- portfolio so that we put our biggest Look at a few of the situations for uations – a spin-off, or a post-bank- amount of money in our highest-con- which we’re most known for being ruptcy, say, where mispricings can be viction idea, and then we view the active: Mercer International we held for common? other ideas relative to that. We find five or six years before we had our proxy DE: Basically, yes. It happens routinely things that we think are exceptional fight. MI Developments we held for more [in such situations] that the historical only occasionally. So if we find some- than a year before we felt they went off performance of a company doesn’t give thing that is really set up, where we course and we had to start trying to March 23, 2005 www.valueinvestorinsight.com Value Investor Insight 2 INTERVIEW: David Einhorn protect value there. In all these cases, the Can you give an example? for a long time, and there have been a day we bought the shares we had no plan lot of times when the CEO has said or to be anything other than passive, happy DE: New Century Financial was a good done things that got under our skin.
Load more

Recommended publications
  • GREENLIGHT CAPITAL RE, LTD. Form 8-K Current Event Report
    SECURITIES AND EXCHANGE COMMISSION FORM 8-K Current report filing Filing Date: 2021-05-05 | Period of Report: 2021-05-04 SEC Accession No. 0001385613-21-000053 (HTML Version on secdatabase.com) FILER GREENLIGHT CAPITAL RE, LTD. Mailing Address Business Address 65 MARKET STREET, SUITE 65 MARKET STREET, SUITE CIK:1385613| IRS No.: 000000000 1207, 1207, Type: 8-K | Act: 34 | File No.: 001-33493 | Film No.: 21894402 CAMANA BAY, P.O. BOX CAMANA BAY, P.O. BOX SIC: 6331 Fire, marine & casualty insurance 31110 31110 GRAND CAYMAN E9 GRAND CAYMAN E9 KY1-1205 KY1-1205 345 943 4573 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 May 4, 2021 Date of report (Date of earliest event reported) GREENLIGHT CAPITAL RE, LTD. (Exact name of registrant as specified in charter) Cayman Islands 001-33493 N/A (State or other jurisdiction of incorporation) (Commission file number) (IRS employer identification no.) 65 Market Street Suite 1207, Jasmine Court P.O. Box 31110 Camana Bay Grand Cayman Cayman Islands KY1-1205 (Address of principal executive offices) (Zip code) (345) 943-4573 (Registrant’s telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.
    [Show full text]
  • What Hedge Funds Really Do: an Introduction to Portfolio Management Copyright © Business Expert Press, LLC, 2014
    ROMERO THE BUSINESS What Hedge Funds Really Do E C EXPERT PRESS Philip J. Romero and Jeffrey A. Edwards, Editors DIGITAL LIBRARIES An Introduction to Portfolio • Management BALCH EBOOKS FOR BUSINESS STUDENTS Philip J. Romero • Tucker Balch Curriculum-oriented, born- When I managed a hedge fund in the late 1990s, computer- digital books for advanced based trading was a mysterious technique only available to the business students, written by academic thought largest hedge funds and institutional trading desks. We’ve come What Hedge leaders who translate real- a long way since then. With this book, Drs. Romero and Balch lift world business experience the veil from many of these once-opaque concepts in high-tech into course readings and nance. We can all bene t from learning how the cooperation reference materials for Funds between wetware and software creates tter models. This book students expecting to tackle does a fantastic job describing how the latest advances in nan- management and leadership cial modeling and data science help today’s portfolio managers challenges during their solve these greater riddles. —Michael Himmel, Managing Really Do professional careers. Partner, Essex Asset Management POLICIES BUILT I applaud Phil Romero’s willingness to write about the hedge An Introduction BY LIBRARIANS DO HEDGE FUNDS REALLY WHAT • Unlimited simultaneous fund world, an industry that is very private, often amboyant, usage and easily misunderstood. As with every sector of the invest- to Portfolio • Unrestricted downloading ment landscape, the hedge fund industry varies dramatically and printing from quantitative “black box” technology, to fundamental re- • Perpetual access for a search and old-fashioned stock picking.
    [Show full text]
  • Global Insurance Stock Review
    GLOBAL INSURANCE STOCK REVIEW 2018 GLOBAL INSURANCE RETURNS BY SECTOR* *Weighted Return STOCK REVIEW MSCI ACWI IMI -11.05% Mike Morrissey, CFA President and CEO Insurance -11.46% February 2019 P&C -5.23% What a difference three months can make. For the first time in history, the benchmark US stock index, the S&P 500, showed a decline for the full year after being up for L&H -17.24% the first nine months. The fourth quarter of the year has historically been the best period for stock performance, Multi-line -13.35% but in 2019 the pattern was abruptly broken. Fears about a government shutdown’s implications for the US Reinsurance 4.45% economy and foreign policy jitters following the firing of Defense Secretary James Mattis spooked the market badly. Asian and European markets performed much Brokers 4.53% the same, as the world’s markets are increasingly linked. The Morgan Stanley All Countries World Index declined -20% -15% -10% -5% 0% 5% 10% 11% for the full year, after posting a 2% increase for the first nine months. RETURNS BY MARKET CAP Insurance stocks were also down sharply for the year, Small 2.46% but slightly outperformed the overall market in Q4. This has been a common occurrence over the decades: Small/Medium -9.10% insurance stocks tend to advance after hurricane season is over, whether they suffered major storm losses or not. Medium -5.92% The IIS global insurance stock aggregate fell 11.5% for the year, slightly underperforming the general market, Medium/Large -6.69% but closed the major performance gap that had characterized the first three quarters.
    [Show full text]
  • Stockholder Appraisal Actions Present an Attractive Litigationbased
    2/4/2016 The Hedge Fund Law Report ­ the definitive source of actionable intelligence on hedge fund law and regulation | Article: <p>Stockholder Appraisal Actions … Vol. 9, No. 5 February 4, 2016 VALUATION Stockholder Appraisal Actions Present an Attractive Litigation­Based Strategy for Hedge Fund Managers By Ben Quarmby and Hassan A. Shah MoloLamken LLP Hedge fund managers are increasingly turning to a long­underused litigation­based mechanism to generate investment returns. That mechanism – the Delaware stockholder appraisal action – allows managers controlling shares in a company targeted for merger or consolidation to significantly increase the value of those shares through a pure litigation play. In a guest article, Ben Quarmby and Hassan A. Shah, a partner and an associate, respectively, at MoloLamken, review how appraisal actions work and describe some recent results. The article then discusses the advantages of using appraisal over traditional stockholder litigation, as well as some recent legislative and judicial pushback. Finally, the authors consider the potential opportunity that shareholder appraisal actions present for hedge fund managers and other asset managers. For additional insight from Quarmby, see “Measures Hedge Fund Managers Can Implement to Maximize Protection of Their Trade Secrets” (Dec. 6, 2012). For commentary from other MoloLamken practitioners, see “FCPA Considerations for the Private Fund Industry: An Interview With Former Federal Prosecutor Justin Shur” (May 23, 2014); “How Private Fund Managers Can Manage FCPA Risks When Investing in Emerging Markets” (Jan. 10, 2013); and “Political Intelligence Firms and the STOCK Act: How Hedge Fund Managers Can Avoid Potential Pitfalls” (Apr. 5, 2012). How Appraisal Works Section 262(a) of the Delaware appraisal statute allows a stockholder willing to temporarily forgo the consideration to which it is entitled following a merger to file an action seeking the fair value of its shares based on a judicial appraisal.
    [Show full text]
  • July 7, 2011 Dear Partner: Greenlight Capital, L.P
    July 7, 2011 Dear Partner: Greenlight Capital, L.P., Greenlight Capital Qualified, L.P. and Greenlight Capital Offshore (collectively, the “Partnerships”) returned (2.5)%, (2.1)% and (2.2)%1 net of fees and expenses, respectively, in the second quarter of 2011, bringing the respective year to date net returns to (5.0)%, (5.0)% and (5.3)%.1 This is a famous work of art by the Belgian surrealist painter René Magritte entitled “The Treachery of Images.” The caption in French translates into “This is not a pipe.” When asked about the image, Magritte commented that of course it was not a pipe, just try to fill it with tobacco. This brings us to the topic of the Greek debt situation. It is widely acknowledged that Greece can never pay back its debts. As it becomes more and more likely that Greece will simply default, efforts to find a resolution become increasingly desperate. Last year, in exchange for offering additional loans, the European Union and the IMF demanded austerity, insisting that the Greek government cut benefits and raise taxes. The government tried to comply, but this proved counter-productive as Greek citizens rioted in the streets, which along with the austerity, slowed the Greek economy and made the situation even worse. Now, Greece is being offered additional loans in exchange for even more austerity and the additional request that it privatize state assets (Siemens Acropolis, anyone?). Since it is understood that none of this will resolve the underlying insolvency, privatizations make no long-term sense for Greece. The latest in this long line of attempts to sweep the problems under the rug is the effort to roll-over the loans on a voluntary basis.
    [Show full text]
  • Decision Notice: Greenlight Capital Inc
    Financial Services Authority DECISION NOTICE To: Greenlight Capital Inc. Of: 2 Grand Central Tower 140 East 45 Street Floor 24 New York NY 10017 Date: 12 January 2012 TAKE NOTICE: The Financial Services Authority of 25 The North Colonnade, Canary Wharf, London E14 5HS (“the FSA”) has decided to take the following action: 1. ACTION 1.1. For the reasons set out below, the FSA has decided to impose on Greenlight Capital Inc (“Greenlight”) a financial penalty, pursuant to section 123(1) of the Act, of £3,650,795 for engaging in market abuse in breach of section 118(2) of the Act. 1.2. The financial penalty to be imposed on Greenlight consists of the following elements: i. A disgorgement of financial benefit arising from the market abuse of £650,795 representing the losses Greenlight avoided by way of reduced performance and management fees through the sale of Punch Taverns Plc (“Punch”) shares ii. An additional penalty element of £3 million. 2. REASONS FOR THE ACTION 2.1. This notice is issued to Greenlight as a result of the behaviour of David Einhorn (“Mr Einhorn”) between 9 and 12 June 2009. Greenlight is wholly owned by Mr Einhorn and he is the President and sole portfolio manager of Greenlight and is responsible for all investment decisions on behalf of Greenlight. Mr Einhorn’s behaviour is attributable to Greenlight and Greenlight has therefore engaged in market abuse, for the reasons set out below. 2.2. Greenlight is an investment management firm based in the United States. Greenlight manages investments held by various entities (“the Greenlight Funds”).
    [Show full text]
  • Greenlight Capital Funds (The “Partnerships”) Returned -0.1%1 in the First Quarter of 2021 Compared to 6.2% for the S&P 500 Index
    April 15, 2021 Dear Partner: The Greenlight Capital funds (the “Partnerships”) returned -0.1%1 in the first quarter of 2021 compared to 6.2% for the S&P 500 index. For a quarter in which we made only a handful of portfolio changes and essentially broke even, a lot happened. In general, the investment environment – especially from mid-February through the end of the quarter – was favorable as value outperformed growth, and interest rates and inflation expectations rose. Has the tide turned from Growth to Value? After a very tough decade, we have only just begun a recovery as shown in this 45-year chart from Goldman Sachs research: Growth has outperformed since the GFC MSCI Indices. Relative price performance in local currency. Monthly Frequency until 2000. Daily Frequency from 2000 onwards. Source: Datastream, Goldman Sachs Global Investment Research Part of the shift from growth to value may be coming from higher inflation and inflation expectations. As measured by the inflation swap market, 10-year inflation expectations fell from 2.9% in September 2012 to 0.8% in March 2020. The only significant intervening bounce came 1 Source: Greenlight Capital. Please refer to information contained in the disclosures at the end of the letter. 2 Grand Central Tower • 140 East 45th Street, 24th Floor • New York, NY 10017 Phone: 212-973-1900 • Fax 212-973-9219 • www.greenlightcapital.com Page 2 in 2016, when expectations jumped from 1.5% to 2.3%; notably, that was the only year in the last decade in which value outperformed growth. After bottoming in March 2020, inflation expectations have recovered to 2.5%.
    [Show full text]
  • Greenlight Capital Re, Ltd
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________ FORM 10-Q __________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2018 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33493 ____________________________________________________________________________________ GREENLIGHT CAPITAL RE, LTD. (Exact name of registrant as specified in its charter) ____________________________________________________________________________________ CAYMAN ISLANDS N/A (State or other jurisdiction of incorporation or organization) (I.R.S. employer identification no.) 65 MARKET STREET SUITE 1207, CAMANA BAY P.O. BOX 31110 GRAND CAYMAN CAYMAN ISLANDS KY1-1205 (Address of principal executive offices) (Zip code) (345) 943-4573 (Registrant’s telephone number, including area code) Not Applicable (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
    [Show full text]
  • Fourth Edition in Association with Newedge Alternative Investment Solutions US50 in ASSOCIATION WITH
    US5O THE 50 LARGEST US MANAGERS Fourth Edition In association with Newedge Alternative Investment Solutions US50 IN ASSOCIATION WITH 01 02 03 04 Bridgewater J.P. Morgan Asset Och-Ziff Capital Angelo, Gordon & Associates Management Management Co 1 1 1 1 Total AUM (as at 30/09/12) Total AUM (as at 30/09/12) Total AUM (as at 30/09/12) Total AUM (as at 30/09/12) $80.93bn $44.40bn $31.00bn $23.98bn 2 2 2 2 Total AUM (as at 31/12/11) Total AUM (as at 31/12/11) Total AUM (as at 31/12/11) Total AUM (as at 31/12/11) $76.10bn $44.60bn $29.00bn $21.10bn 3 3 3 3 April 2012 position April 2012 position April 2012 position April 2012 position 1 2 3 8 4 4 4 4 Location Location Location Location Westport, CT New York, NY New York, NY New York, NY 5 5 5 5 Founders/principals Founders/principals Founders/principals Founders/principals Ray Dalio Not disclosed Daniel Och John M. Angelo Bob Prince Michael L. Gordon Greg Jensen 6 6 Founded Founded 6 6 Not disclosed Not disclosed Founded Founded 1988 1975 7 7 Principal hedge fund(s) Principal hedge fund(s) 7 7 JP Morgan AM OZ Master Fund Principal hedge fund(s) Principal hedge fund(s) Highbridge Capital Corporation OZ Europe Master Fund Not disclosed Fund name: Pure Alpha OZ Asia Master Fund Launch: 1991 Strategy/style: Relative Value, Equity OZ Global Special Investments Master Size: $59.62bn Long/Short, Macro, Distressed Fund Fund manager: Ray Dalio, Bob Prince, Securities, Merger Arbitrage/Event Greg Jensen Driven, Short Selling Strategy/style: Global Macro Fund name: Pure Alpha Major Markets Launch: 2010
    [Show full text]
  • Greenlight Capital Re (GLRE)
    Greenlight Capital Re Annual Report 2021 Form 10-K (NASDAQ:GLRE) Published: March 10th, 2021 PDF generated by stocklight.com UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33493 Greenlight Capital Re, Ltd. (Exact Name of Registrant as Specified in Its Charter) Cayman Islands N/A (State or other jurisdiction of incorporation or organization) (I.R.S. employer identification no.) 65 Market Street Suite 1207, Jasmine Court P.O. Box 31110 Camana Bay Grand Cayman Cayman Islands KY1-1205 (Address of principal executive offices) (Zip code) Registrant’s telephone number, including area code: 345-943-4573 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of exchange Class A ordinary shares GLRE The Nasdaq Stock Market LLC Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
    [Show full text]
  • Final Notice: Greenlight Capital
    Financial Services Authority FINAL NOTICE To: Greenlight Capital Inc. Firm Address: 2 Grand Central Tower 140 East 45 Street Floor 24 New York NY 10017 Date: 15 February 2012 TAKE NOTICE: The Financial Services Authority of 25 The North Colonnade, Canary Wharf, London E14 5HS (“the FSA”) gives final notice that it has taken the following action: 1. THE ACTION 1.1. The FSA served on Greenlight Capital Inc (“Greenlight”) a Decision Notice on the 12 January 2012 which notified Greenlight that the FSA decided to impose a financial penalty, pursuant to section 123(1) of the Act, of £3,650,795 for engaging in market abuse in breach of section 118(2) of the Act. 1.2. The financial penalty to be imposed on Greenlight consists of the following elements: i. A disgorgement of financial benefit arising from the market abuse of £650,795 representing the losses Greenlight avoided by way of reduced performance and management fees through the sale of Punch Taverns Plc (“Punch”) shares; ii. An additional penalty element of £3 million. 1.3. Greenlight has not referred the matter to the Upper Tribunal (Tax and Chancery Chamber). 1.4. Accordingly, for the reasons set out below, the FSA hereby imposes on Greenlight a financial penalty of £3,650,795 for engaging in market abuse. 2. REASONS FOR THE ACTION 2.1. This notice is issued to Greenlight as a result of the behaviour of David Einhorn (“Mr Einhorn”) between 9 and 12 June 2009. Greenlight is wholly owned by Mr Einhorn and he is the President and sole portfolio manager of Greenlight and is responsible for all investment decisions on behalf of Greenlight.
    [Show full text]
  • Profiting from Hedge Funds
    c07.indd 62 27-05-2013 08:17:40 Profi ting from Hedge Funds ffirs.indd i 29-05-2013 08:16:30 ffirs.indd ii 29-05-2013 08:16:30 Profi ting from Hedge Funds Winning Strategies for the Little Guy John Konnayil Vincent ffirs.indd iii 29-05-2013 08:16:30 Cover Design: Michael Rutkowski Cover Photography: ©iStockphoto.com/urbancow Copyright © 2013 by John Wiley & Sons Singapore Pte. Ltd. Published by John Wiley & Sons Singapore Pte. Ltd. 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as expressly permitted by law, without either the prior written permission of the Publisher, or authorization through payment of the appropriate photocopy fee to the Copyright Clearance Center. Requests for permission should be addressed to the Publisher, John Wiley & Sons Singapore Pte. Ltd., 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628, tel: 65–6643–8000, fax: 65–6643–8008, e-mail: [email protected]. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best eff orts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifi cally disclaim any implied warranties of merchantability or fi tness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials.
    [Show full text]