During his recent Q2 2023 Earnings Call, David Einhorn discussed “Animal Spirits” returning to the anti-value pockets of the market. Here’s an excerpt from the call:
The first half of 2023 was an extremely difficult period for shorting as animal spirits returned to the anti-value pockets of the market. While inflation has been moderating, we expect that it will remain stickier than the market expects and has a reasonable chance to reaccelerate from here. If so, this will complicate the job of the Fed in the second half of the year.
And adds risks that the growing complacency on inflation could need to be re-evaluated by the market. As a result, we’ve added some equity index shorts. The Solace Glass portfolio lost seven tenths of 1% in July and has returned 8.9% year to date in 2023, net exposure in the investment portfolio was approximately 40% at the end of July.
As result of the shareholder vote, we collapsed the company’s dual class structure and further simplified the capital structure by repaying the convertible notes. I now hold 17.7% of the ordinary shares. We’re pleased with the progress we’ve made at Greenlight Re in 2023, and while there’s a wide range of potential outcomes in the equity markets at the current juncture, we remain constructive with our ability to generate good risk-adjusted returns.
You can listen to the entire call here:
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