Greenlight Capital, the long-short equity hedge fund led by veteran manager David Einhorn, has given back all of its 2025 gains following a third consecutive monthly loss, according to a report by Reuters citing an unnamed investor.
The fund reportedly fell 4.1% in July, bringing its year-to-date return to -0.1%, erasing the strong start it posted earlier this year. Greenlight was up more than 12% through April, buoyed by bearish positioning that initially paid off before markets reversed course.
The fund’s underperformance coincides with a broader equity rally that has persisted despite persistent macro uncertainty and mixed geopolitical signals – particularly the market’s relative indifference to Donald Trump’s unpredictable tariff policy.
Einhorn, who has been vocally bearish in recent investor communications, reiterated in his Q1 letter that he was preparing for a structural market downturn. That thesis worked in the early months of 2025, but short exposure and hedging strategies have since weighed heavily on returns.
While full Q2 positioning won’t be available until 13F filings are released, several of Greenlight’s largest disclosed long holdings as of 31 March underperformed sharply in July. Teck Resources fell nearly 20% during the month, while Brighthouse Financial – an annuities-focused insurer – lost almost 13%, and Kyndryl Holdings – the IBM spinout focused on IT infrastructure – declined 10%.
Two non-US holdings meanwhile – Solvay (Belgium) and Lanxess (Germany) – also posted declines of over 6% and 4%, respectively.
Among its top-five names, the lone bright spot was Core Natural Resources, which gained nearly 6% in July, providing a modest offset to the broader drag from the portfolio.
