Below David Einhorn’s Q3 letter to shareholders. Einhorn has become one of the great hedge fund managers so its worth giving his letter a little time to hear what he says.

For note he finished Q3 strongly at +13%. Since 1996 he has achieved an annualized 21.5% return at his firm, Greenlight Capital.

For regulars here there is little new. He is as shocked as we all are  at the Fed chief’s actions. He picks out a few key quotes inc:

“Even after the economy starts to recover more quickly, even after the unemployment rate
begins to move down more decisively, we’re not going to rush to begin to tighten policy.” (Ben Bernanke)

From Einhorn:

“We have just spent 15 years learning that a policy of creating asset bubbles is a bad idea, so it
is hard to imagine why the Fed wants to create another one. But perhaps the more basic
question is: How fruitful is the wealth effect?”

Beyond the macro issues he provides some information on his GMT short, GM long etc.

Here the report: David-Einhorn-Greenlight-Capital-2012-Q3-Investor-Letter

Rich

p.s. list of holdings..

http://www.gurufocus.com/StockBuy.php?GuruName=David+Einhorn

 

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