Greenlight Capital, the hedge fund led by founder David Einhorn, is set to close its hedge fund to new capital from 1 July, citing fund size considerations and ongoing concerns about equity market valuations, according to a report by Bloomberg.
In its fourth-quarter investor letter dated 20 January and seen by Institutional Investor, the firm said prospective investors must notify Greenlight of their intention to allocate by 1 May. The closure could remain in place indefinitely.
“We are again at a size that supports the business,” the firm said in the letter. Greenlight previously reopened to new investors in May 2020.
The hedge fund reiterated its long-held bearish view on US equities, warning that valuations have reached extreme levels.
“We believe that the US equity market is the most expensive we’ve seen since we began managing money and arguably in the history of the United States,” the firm wrote.
At the end of 2025, Greenlight reported gross exposure of 139% and net long exposure of 39%.
The fund gained 9% last year, trailing the S&P 500’s 17.9% advance. Performance was driven overwhelmingly by macro positioning rather than traditional long-short equity investing.
Greenlight said its macro book generated 12.8 percentage points of net returns in 2025, while long positions added 2.4% and short positions detracted 6.3%.
Gold was the standout contributor, rising 64% during the year. While Greenlight said its long-term gold thesis remains rooted in concerns around fiscal and monetary discipline, it attributed last year’s gains primarily to global reserve diversification.
The firm said foreign central banks are increasingly reducing reliance on the US dollar for reserves and trade settlement, leading to higher allocations to gold.
Greenlight also recorded gains from a medium-sized position in copper, implemented through options on copper futures. Copper prices climbed about 40% during the year, with the firm citing rising demand linked to artificial intelligence and constrained supply.
Additional macro profits came from interest-rate futures, where Greenlight said it correctly anticipated Federal Reserve rate cuts ahead of market consensus. Smaller gains were recorded in sovereign debt and foreign exchange positions, while inflation swaps produced a modest loss.
The firm said it aims to express macro views as directly as possible through underlying assets rather than related equities.
Alongside its macro positioning, Greenlight noted it continues to hold selective equity positions, including shares in coal producer Core Natural Resources, which it described as undervalued amid negative investor sentiment toward the sector.
