For your reading pleasure–the third quarter letter from David Einhorn’s Greenlight Capital. David is an excellent value-focused, long-short hedge fund manager and his assets have grown quickly due to his stock selection success. That growth has also led David to focus more on macro events as opposed to bottom-up stock picking. A large asset base shrinks the number of opportunities that good, bottom-up stock pickers can exploit.
The third quarter letter offers David’s insights on macro conditions as well as some of his investment rationales.