How is Greenlight nowadays?
Will always respect Einhorn as an investor, he's brilliant. Greenlight was once legendary, $12bn AUM in 2014, but then $5.5bn in 2018, and $1.6bn today. Is Greenlight still viewed as an elite/top tier fund, and would you work there? Anyone have any insights into their investment process, culture, comp, turnover etc? Do you think they can ever make it back to 11 figure AUM?
I feel like some people may draw comparisons to Pershing Square & Glenview in a sense that they have "slumped a little", but the reality is that Pershing Square puts up phenomenal numbers, and Glenview & Pershing are still in the 11 figure AUM range...Greenlight is well below that now. Would appreciate any insights/comments you may have
Following
Why would anyone want to work at a fund that has AUM declining 90% over the last 5-7 years? In what world is a company with revenue declining at such a rate considered attractive?
Seems fair at more senior levels. At junior levels, it's a lot of kids trying to break in and learning from investors with far more experience than they have. Learning exp from Greenlight is possibly still top-tier.
It's a bit of laughingstock. Seems like there's one or two headlines every year on bloomberg about Einhorn trying to explain away his latest underperformance.
Use some critical thinking - how can a fund where essentially all the outside capital is gone (most of what's left is probably his own money), no new investors are interested in giving them capital, and returns have been nothing short of abysmal be viewed as a "top tier" fund? Not to mention the guy was the public face of arguably the worst high profile trade of all time (shorting Tesla for years).
You can’t eat prestige
Pershing Square was sucking wind for years until COVID hit and Ackman fear-mongered all over CNBC with "hell is coming" for his short hedges to pay off. I won't argue his brilliance in that, but putting up "phenomenal numbers" is not what Pershing Square was doing in recent history.
Not sure why people love to hate on Ackman here. Does he have a big personality and is a bit of a baby? Sure. Did he have a horrific 2015-2017? Yes (HLF and VRX). But his LT track record is still respectable, and he's pretty transparent as far as making himself accessible and putting out literature / interviews that all of us can gain some sort of insight from (even if we disagree with his views - one exception being Betting on Zero which was awful). That's frankly what I give him the most credit for, even if he benefits from the publicity. Given his concentration, he's a boom or bust manager and nobody is heralding him for some sophisticated risk management process. Just think respect is due for what he is.
In terms of his hedge, I would read the response he put out last March re: people claiming he was market manipulating: https://assets.pershingsquareholdings.com/2020/03/26222617/Pershing-Squ…
I'm not hating on Ackman (maybe others on WSO are) just pointing out that phenomenal numbers isn't an accurate representation of what his fund has been doing in recent years. I respect his acumen, his fund, his performance and agree with you that credit is warranted for lots of what he does. I've read that response as well and there's a great interview (will find and edit this post) where he discussed it at length.
Apparently his niece or daughter is hot, can't remember which. Source: friend piped.
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