BHFAN - Greenlight Capital Q4 2023 Letter

2024-01-24 08:00:00 ET

Summary

• Green Light Capital is a privately owned hedge fund sponsor. The firm invests in the public equity and fixed income markets of the United States. It primarily invests in value.
• The Greenlight Capital funds returned 22.1% in 2023, net of fees and expenses, compared to 26.3% for the S&P 500 index.
• At year-end, the largest disclosed long positions in the Partnerships were Brighthouse Financial, CONSOL Energy, Green Brick Partners, Kyndryl Holdings and Vitesco Technologies Group. The Partnerships had an average exposure of 118% long and 70% short.

Dear Partner:

The Greenlight Capital funds (the "Partnerships") returned 22.1% in 2023, net of fees and expenses, compared to 26.3% for the S&P 500 index. Since the inception of Greenlight Capital in May 1996, the Partnerships have returned 2,902.1% cumulatively or 13.1% annualized, both net of fees and expenses. Over the same period, the S&P 500 index has returned 1,117.1% or 9.5% annualized. Greenlight's investors have earned $5.5 billion, net of fees and expenses, since inception.

2023 was a very good year for the Partnerships. It had been tracking towards a great year until the last couple months when the market took off and most of our short book performed poorly. Bubblelike conditions returned for the most speculative stocks and a handful of our shorts went parabolic....

For further details see: