- For years David Einhorn's Greenlight Capital (NASDAQ:GLRE) thrived on buying beaten-down stocks of companies on the brink of turnarounds and selling those of overvalued companies
- Now his investment approach looks less robust--Greenlight has slid 25% since the end of 2014 and clients have pulled $3B during the last two years, Bloomberg reports.
- Einhorn isn't changing his tack: He's long on General Motors (NYSE:GM) and short on a "bubble basket," which includes Netflix (NASDAQ:NFLX) and Amazon.com (NASDAQ:AMZN).
- Some critics say Einhorn let the fund get too big, which forced it into larger cap companies like GM and away from smaller- and mid-cap stocks, which brought him his original success.
- Einhorn and his supporters, though, are betting the re-emergence of value stocks is due soon.
- Previously: Greenlight added IAC/InterActiveCorp, exited Chemours in Q1 (May 15)
- Now read: I Could Still Be Wrong About Netflix
Original article