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Greenlight Q1 letter


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"Twice a silly price is not twice as silly; it's still just silly."


Good point! But it does increase your potential return greatly!


Interesting to see that he has taken a short on the momentum stocks as well. I wonder whether he took it before or after the recent little plunge.


What is interesting is that despite there is "general consensus that we are witnessing our second tech bubble in 15 years", short interest on all those stocks is the lowest it has been in the last 5 years (and possibly even since the dotcom bubble!) There is definitely fear in the market but just on the short side!

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Looks like Alpha Bank became a major new long position.


from http://www.cnbc.com/id/101469983


Greenlight took the initial position sometime during the second quarter of 2013 when the stock was near its lows. At the time, Greenlight participated in recapitalization of Alpha Bank and Piraeus Bank, according to an investor letter. The hedge fund didn't specify how large the initial investment was, but said it included warrants that would allow it to buy more shares over a period of 4½ years.


In the letter last year, Greenlight said the bank should be able to cut costs over time as employment laws are revised and that business confidence was on the rise. It also said that Alpha was valued between 0.5 and 0.6 times tangible book value.


Alpha Bank's shares have fallen by about 95 percent since their peak in 2007.

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