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GLRE - Greenlight Capital Re

premfan

By premfan
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giofranchi Newbie

giofranchi

Posted
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Einhorn opens positions in Intrexon, NVR, Tempur Sealy • 5:57 PM

 

- Intrexon (XON) +4.8% AH after David Einhorn's Greenlight Capital reveals it opened a ~2.1M-share position in the biotech company that went public in August. (13F)

- Greenlight also started positions in NVR and Tempur Sealy (TPX), and added large stakes in WPX Energy (WPX) and Spirit AeroSystems (SPR); it closed positions on Oaktree Capital (OAK), State Bank Financial (STBZ) and Capital Bank Financial (CBF), while selling 20% of its shares in Rite Aid (RAD).

- Its biggest positions are still in Apple (AAPL), 21.1% of the portfolio; GM, 11.3%; and Marvell Technology (MRVL), 9.4%.

 

 

Gio

 

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Guest hellsten

Guest hellsten

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Einhorn opens positions in Intrexon, NVR, Tempur Sealy • 5:57 PM

 

- Intrexon (XON) +4.8% AH after David Einhorn's Greenlight Capital reveals it opened a ~2.1M-share position in the biotech company that went public in August. (13F)

- Greenlight also started positions in NVR and Tempur Sealy (TPX), and added large stakes in WPX Energy (WPX) and Spirit AeroSystems (SPR); it closed positions on Oaktree Capital (OAK), State Bank Financial (STBZ) and Capital Bank Financial (CBF), while selling 20% of its shares in Rite Aid (RAD).

- Its biggest positions are still in Apple (AAPL), 21.1% of the portfolio; GM, 11.3%; and Marvell Technology (MRVL), 9.4%.

 

 

Gio

 

Thanks. Einhorn is a poker player… I wonder how much he uses of what he has learnt from poker, e.g. about bluffing, when investing. He must know stocks will go up or down based on what he does. XON has revenue of $13.92 million according to Google. Third Point also revealed a position in XON.

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fareastwarriors Newbie

fareastwarriors

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http://www.nytimes.com/reuters/2013/11/25/business/25reuters-einhorn-micron.html?src=busln

 

 

David Einhorn's hedge fund Greenlight Capital reported a stake of about 23.02 million shares in U.S. memory chipmaker Micron Technology, according to a filing on Monday.

 

 

 

 

The disclosure of the stake, equivalent to about 2 percent of Micron, comes after Einhorn said last week he had invested in the chipmaker because it stands to benefit from industry consolidation.

 

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dcollon Newbie

dcollon

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Amended Investment Management Agreement:

 

Greenlight Capital Re, Ltd. (the "Company"), Greenlight Reinsurance, Ltd. ("Greenlight Re"), Greenlight Reinsurance Ireland, Ltd. ("GRIL") and DME Advisors, LLC ("DME"), (each a "Participant" and collectively the "Participants"), entered into a second amended and restated agreement, effective January 1, 2014, for the purpose of managing certain jointly held assets of each of the Participants (the "Agreement"). The Agreement amends and restates the agreement dated August 31, 2010 among the Company, Greenlight Re, GRIL and DME Advisors, LP ("DMELP") (the "Prior Agreement").

 

 

The Agreement (i) replaces DMELP with DME as a Participant and (2) simultaneously provides for the Participants to enter into an Investment Advisory Agreement with DMELP. DME and DMELP are controlled by David Einhorn, the Chairman of the Company's Board of Directors and the president of Greenlight Capital, Inc.

 

 

The term of the Agreement is January 1, 2014 through December 21, 2016. The term of the Prior Agreement was from August 31, 2010 through December 31, 2013. The Agreement renews automatically for successive three-year periods unless at least 90 days prior to the end of the then current term, DME notifies the other Participants, of its desire to terminate the Agreement or any other Participant notifies DME of its desire to withdraw from the Agreement. During the term of the Agreement, neither the Company, Greenlight Re nor GRIL shall engage an investment advisor other than DME or DMELP (or an affiliate of DME) to manage its investable assets (as defined in the Agreement). Additionally, the Company, Greenlight Re and GRIL have agreed to use commercially reasonable efforts to cause each of their respective current and future subsidiaries to become participants or enter into similar agreements.

 

Other than the duration, the material terms of the Agreement are identical to the prior Agreement. In particular, pursuant to the Agreement:   

   

 

• DMELP will receive a monthly payment based on an annual rate of 1.5% of the capital account balance of each Participant ("Management Fee"); and

 

 

 

 

• DME will receive a performance allocation based on the positive performance change in such Participant’s capital account equal to 20% of net profits calculated per annum, subject to a loss carry forward provision.

 

 

 

The loss carry forward provision allows DME to earn a reduced performance allocation of 10% on profits in any year subsequent to the year in which a Participant’s capital account (other than DME) incurs a loss, until all the losses are recouped and an additional amount equal to 150% of the loss is earned. DME is not entitled to a performance allocation in a year in which the investment portfolio incurs a loss.

 

 

Each of the Company, Greenlight Re and GRIL has agreed to release DME and its affiliates from, and to indemnify and hold them harmless against, any liability arising out of the Agreement, subject to certain exceptions. Furthermore, DME has agreed to indemnify the Company, Greenlight Re, and GRIL against any liability incurred in connection with certain actions.

 

The Company, Greenlight Re or GRIL may withdraw as a Participant under the Agreement with at least 90 days notice prior to the end of the then current term and prior to the expiration of the Agreement's term only ‘‘for cause,’’ which the Agreement defines as:

 

 

• a material violation of applicable law relating to DME’s or DMELP's advisory business;

 

• DME’s or DMELP's gross negligence, willful misconduct or reckless disregard of any of DME's obligations under this agreement or DMELP's obligations under the Investment Advisory Agreement;

 

• a material breach by DME or DMELP of Greenlight Re’s or GRIL's investment guidelines that is not cured within a 15-day period; or

 

• a material breach by DME or DMELP of its obligations to return and deliver assets as any other Participant may request.

 

 

 

In addition, GRIL may withdraw as a Participant under the Agreement prior to the expiration of its term due to unsatisfactory long term performance of DME or DMELP, as determined solely by the Board of Directors of GRIL on each anniversary date of the Agreement.

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Guest Dazel

Guest Dazel

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This was a hell of a call! Actually not the call but the action...anyone know how big his bet against the momo stocks was? I have been watching this absolute nonsense for awhile!

 

Dazel

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tombgrt Newbie

tombgrt

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Was? I would be surprised if he sold all. Many are still wildly overvalued. His saying that "a stock with a silly valuation that doubles isn't twice as silly" works the other way around as well. Many of those stocks are still valued at insane multiples and will ultimately be valued at a tenth of their peaks.

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constructive Newbie

constructive

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What is the ratio of Greenlights hedge fund positions to the capital in Greenlight RE?

 

~130% of equity is invested in hedge fund assets with the remainder of float in cash equivalents. The fund is only ~50% net long, so they can safely invest some of the float in it.

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Guest JoelS

Guest JoelS

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Forgive my ignorance but shouldn't prudent insurance management dictate that premiums written be flat to negative in this underwriting environment?

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Guest Dazel

Guest Dazel

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Thanks for the presentation Gio!

 

I am surprised at the 10% investment return over 10 years...seems low. Doesn't Einhorn usually do 20% a year on average?

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