PTON - Greenlight Capital Q4 2024 Letter

2025-01-23 06:40:00 ET

Summary

• The Greenlight Capital funds (the "Partnerships") returned 7.2% in 2024, net of fees and expenses, compared to 25.0% for the S&P 500 index.
• There is an open debate as to whether Bitcoin will at some point enter the mainstream as an official currency.
• Most levered ETFs achieve their leverage by going to large investment banks and buying swaps on the shares.

Dear Partner:

The Greenlight Capital funds (the "Partnerships") returned 7.2% in 2024, net of fees and expenses, compared to 25.0% for the S&P 500 index. Since the inception of Greenlight Capital in May 1996, the Partnerships have returned 3,117% cumulatively or 12.9% annualized, both net of fees and expenses. Over the same period, the S&P 500 index has returned 1,421% or 10.0% annualized. Greenlight's investors have earned $5.7 billion, net of fees and expenses, since inception. ¹

Donald Trump was inaugurated yesterday. While 2024 was dominated by election uncertainty, with the election now behind us, it feels like we are faced with more uncertainty than ever. We know who the President is, but it's anyone's guess as to what he will do. We carefully followed the campaign, but don't seem to remember any discussion about territorial expansion. President Trump now aspires to take over Greenland, Canada and the Panama Canal. This could be Manifest Destiny Part 2: the New American Colonialism, a Trump negotiating position, an attempt to distract from other issues or simply more meme fuel. We're not sure....

For further details see: