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Einhorn’s Greenlight Hedge Funds Lose 5% in June, Extending Drop

Katherine Burton and Simone Foxman

(Bloomberg) -- David Einhorn’s hedge funds fell 5% in June as value stocks lagged growth shares in the month.

The drop extends Greenlight Capital’s loss for the year to 20.7%, according to an investor update on Tuesday viewed by Bloomberg.

The S&P 500 index gained 1.8% in June, helping to make the quarter the best since 1998 as investors assessed better-than-estimated economic data amid concern over new coronavirus cases and trade relations with China.

Einhorn’s value-oriented investment strategy has largely gone against market trends in recent years. He’s still recovering from losses that started in 2015, when his main fund fell 20%, and deepened with a record 34% decline three years later.

At the end of May, there was a short-lived pivot toward beaten-down shares as recovery bets mounted. That fizzled in June, with growth stocks again climbing and value losing ground.

Greenlight managed $2.6 billion as of Jan. 1, down from $12 billion at its peak.

A spokesman for New York-based Greenlight declined to comment.

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