I hold gold, I will never get rid of it. I hope I never have to use it, "David Einhorn told Kitco News at the annual Sohn conference in New York City in 2019.
Growing concerns about the health of the US economy and financial markets have prompted David Einhorn's Greenlight Capital to establish a solid safe haven position in gold, with its stake in SPDR Gold Shares (New York Stock Exchange code: GLD) increasing by 89.22% in the third quarter.
The company's third quarter 13-F filing with the Securities and Exchange Commission shows that it invested $34.9 million in the world's largest gold ETF. According to reports, this is Greenlight Capital's largest stake in GLD on record.
Previously, David Einhorn stated in a letter to investors in the third quarter that he was concerned about the direction of the market. He stated in the letter that investors are too complacent about the threat of rising political uncertainty. The view of complacent investors that geopolitics should be ignored may be correct, but sometimes it is not. We suspect that we are in one of these times
In addition to his safe haven exposure to gold, David Einhorn also stated that he expects political turmoil to drive up oil prices, ultimately pushing the US economy into recession. "The rise in oil prices will squeeze consumers and potentially lead to an economic recession. The resulting inflation will also put the Federal Reserve in a worrisome situation, where it has to fight against rising prices at a time of rising unemployment. This makes the market outlook very worrying“
At the time of the above comments, Greenlight Capital had a return of 27.7% in the first nine months of 2023. In the third quarter, hedge funds reported a return of 12.9%.
The performance of the hedge fund is more than twice that of the S&P 500 index, which rose by 13.1% as of the end of the third quarter.
Although Greenlight holds record gold levels, Einhorn has been a bullish bullish for many years. The hedge fund also holds a large amount of physical gold, which is not part of the 13-F filler.
David Einhorn is the president and co founder of Greenlight Capital Inc. He was born in Demarester, New Jersey in February 1968 and obtained a Bachelor's degree from the School of Arts and Sciences at Cornell University in 1991. Einhorn has long been considered one of the most successful and sought after hedge fund managers in the financial industry.
