David Einhorn’s hedge funds fell 5% in June as value stocks lagged growth shares in the month.
The drop extends Greenlight Capital’s loss for the year to 20.7%, according to an investor update on Tuesday viewed by Bloomberg.
The S&P 500 gained 1.8% in June, helping to make the quarter the best since 1998 as investors assessed better-than-estimated economic data amid concern over new coronavirus cases and trade relations with China.
Einhorn’s value-oriented investment strategy has largely gone against market trends in recent years. He’s still recovering from losses that started in 2015, when his main fund fell 20%, and deepened with a record 34% decline three years later.
"It's now June and if you’ve been on a deserted island for the last five months you couldn’t have fathomed the movements we’ve seen," an expert says.
At the end of May, there was a short-lived pivot toward beaten-down shares as recovery bets mounted. That fizzled in June, with growth stocks again climbing and value losing ground.
Greenlight managed $2.6 billion as of Jan. 1, down from $12 billion at its peak.
A spokesman for New York-based Greenlight declined to comment.
