At the Apex of the Bermuda Triangle :)

[twacowfca]

Thank you, Giofranchi,

 

I'll take a look at their presentation.

 

Are the 10% to 15% returns on stock investments you anticipate before or after Mr Einhorn's investment management company takes their cut?  How much is the cut? Is it the usual 2% and 20%  or is it more or less?

 

twacowfca,

on page 21 of the presentation you find an annualized investment return of 9,6% since formation of GLRE (2005-2011):

2005: 14.2%

2006: 24.4%

2007: 5.9%

2008: (17.6%)

2009: 32.1%

2010: 11.0%

2011: 2.1%

2012 YTD: 10.5%

Those are all after fees and expenses. That’s why I think in more normal times Mr. Einhorn might achieve a 10%-15% investment return after fees and expenses.

Actually, from 1996 (inception of his fund) until 2006 Mr. Einhorn achieved an annualized return of 29% (I don’t know if before or after fees… :)).

 

giofranchi

 

Those are very good returns.  Any fund manager who beats the S&P500 by 4% per annum after fees is exceptional.  Plus, Greenlight Re has a huge advantage over other funds in that they are protected from having funds withdrawn by investors at the worst possible time when the market takes a dive or when they underperform.  :)

[jay21]

Posted some thoughts re: GLRE in the investment idea board.