Greenlight Capital, Inc. is a hedge fund with its main offices located on 45th Street in the heart of New York City. The firm has a little over $1.6 billion in assets under management (AUM). It handles these funds across a total of five pooled investment vehicles, also known as funds. With just 12 employees, the firm has a relatively small team of advisors and financial professionals.
The firm tends to invest in publicly listed equity securities, though it also invests in distressed assets when appropriate. While not everyone can invest in a hedge fund due to its "accredited investor" requirement, a financial advisor can help you invest for retirement or your other long-term goals.
Greenlight Capital Background
Greenlight Capital has been in business since 1996. David Einhorn is both the firm's president and main portfolio manager. Daniel Roitman is the chief operating officer (COO) and Vinit Sethi is the vice president and director of research. Steven Rosen is the chief compliance officer (CCO) and Barrett Brown is the chief financial officer (CFO).
Greenlight Capital Investment Philosophy
When it comes to investment strategies and philosophies, Greenlight Capital takes a simpler approach than most. The firm clearly states that it mainly looks to invest in its funds using both long and short publicly listed equity securities. The firm also uses distressed debt, but only when those investments are cyclically attractive. The firm seeks out capital appreciation by buying securities that are undervalued and then selling them for a profit. It also looks to drive growth through short selling.
Like any hedge fund, Greenlight Capital also seeks to achieve the highest rates of return possible, while keeping capital losses to an minimum. Obviously, there's no way to ensure that any one result will be achieved, and as a result, investment returns may vary over time.
Greenlight Capital says that it combines "the analytical discipline of determining intrinsic value with a practical understanding of markets," which is another way of saying that it combines both fundamental analysis and technical analysis. Ultimately, however, the firm notes that its overall approach is rooted in fundamental analysis by way of a rigiorous study of financial statements and other important documents.
Largest Hedge Funds Managed by Greenlight Capital
Greenlight Capital Offshore Partners
- AUM: $911,396,002
- Minimum: $1,000,000
- Beneficial Owners: 3
Greenlight Capital Qualified, LP
- AUM: $596,609,252
- Minimum: $1,000,000
- Beneficial Owners: 99
Greenlight Capital Offshore Ltd.
- AUM: $166,557,086
- Minimum: $1,000,000
- Beneficial Owners: 70
Greenlight Capital, LP
- AUM: $109,648,628
- Minimum: $1,000,000
- Beneficial Owners: 39
Greenlight Capital Offshore Qualified, Ltd.
- AUM: $28,988,274
- Minimum: $1,000,000
- Beneficial Owners: 11
Fees at Greenlight Capital
Greenlight Capital takes a quarterly investment management fee from each of its funds. This fee is equal to 0.375% of the market value of each fund each quarter. This fee is adjusted for withdrawals and redemptions, though.
The firm also takes a performance allocation, or performance-based fee, which is equal to 20% of the increase in value of each investor's investment. For more specific information on the firm's fee schedules, reach out directly to the firm or read through its Form ADV.
What to Watch Out For
Remember that only accredited investors are able to invest in hedge funds. To be an accredited investor, you must have at least $200,000 of earned income ($300,000 for couples) in each of the past two years, as well as a reasonable assumption that that trend will continue for the current year. You can also be considered an accredited investor if you have at least a $1 million net worth (minus the value of your primary residence) on your own or together with a spouse.
Greenlight has a single disclosure listed on its Form ADV. This disclosure belongs to both the firm and one of its advisory affiliates. It relates to a June 2009 infraction where the firm inadvertently engaged in market abuse in the U.K. through the trading of certain shares. This situation resulted in the firm being fined $11.4 million and submitting to disgorgement.
Becoming a Client of Greenlight Capital
Remember, only accredited investors can work with Greenlight Capital, or any hedge fund for that matter. If you meet the requirements and want to work with Greenlight, you can reach out to the firm directly via email or over the phone.
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