Jan 23, 2019

Hedge fund manager David Einhorn: "Nothing went right" in 2018

Photo: Adam Jeffery/CNBC/NBCU Photo Bank via Getty Images

David Einhorn's Greenlight Capital had another trying quarter in a year where "nothing went right" — bringing the fund's 2018 losses to 34.2%, per the firm's latest investment letter obtained by Axios. Einhorn also said the firm would be taking in new money for the first time since 2014, because he no longer believes "there is risk of [Greenlight Capital's] assets growing too quickly." Excerpts of the letter were first reported by CNBC.

Why it matters: Once a hedge fund superstar, Einhorn's firm — which focuses on value investing — has struggled to outperform the broader market over the past few years, much like other hedge funds. Explaining the tough year, Einhorn wrote: "It feels like a combination of a few where we were wrong, a difficult environment for value investing, and a lot of adverse variance."

Greenlight's biggest long positions include General Motors and life insurer Brighthouse Financial, while the firm is short Tesla. Einhorn said the firm also has a "macro hedge in case the politicians and central bankers continue to act irresponsible — which seems like a safe bet."

  • In the letter, Einhorn struck an upbeat tone about this year, saying "2019 is in the early days, but we feel a little like a team that just won its opening day game after a last place finish."

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Biden bets it all on South Carolina

Illustration: Eniola Odetunde/Axios

COLUMBIA, S.C. — Most Joe Biden admirers Axios interviewed in South Carolina, where he's vowed to win today's primary, said they're unfazed by his embarrassing losses in Iowa, New Hampshire and Nevada.

Why it matters: Biden has bet it all on South Carolina to position himself as the best alternative to Bernie Sanders — his "good buddy," he tells voters before skewering Sanders' record and ideas.

Coronavirus updates: Market ends worst week since financial crisis

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The stock market ended its worst week since the financial crisis, prompting the Fed to release a statement. Meanwhile, the WHO warned that countries are losing their chance to contain the novel coronavirus and raised its global risk assessment to "very high" Friday.

The big picture: COVID-19 has killed more than 2,860 people and infected more than 84,000 others in over 60 countries and territories outside the epicenter in mainland China. The number of new cases reported outside China now exceed those inside the country.

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California coronavirus: Latest case has no recent history of international travel

Gov. Gavin Newsom. Photo: Kevork Djansezian/Getty Images

A new case of the novel coronavirus in California was announced on Friday after Gov. Gavin Newsom said Thursday that 33 people had tested positive for the virus, noting the risk to the public remains low.

What's new: An adult woman with chronic health conditions in Santa Clara County who "did not recently travel overseas" or come into contact with anyone known to be ill was confirmed to have contracted the coronavirus on Friday by CDC and California Department of Public Health officials.

Go deeperArrowUpdated 12 hours ago - Health