Up & Down the Street
When David Einhorn, the poker-playing hedge fund superstar, decides to publicly take on a company whose stock he owns (or has shorted), he usually gets results. Once you establish a reputation for astute calls on Wall Street—Mr. Einhorn’s most famous being his bearish call on Lehman in the spring of 2008—the lemmings can’t help but Read More
head for the border
Eat/invest at your own discretion.
Chipotle shares fell as much as 7.2 percent after Greenlight Capital founder David Einhorn said he was betting against the company today at the Value Investing Conference.
That the stock fell on Mr. Einhorn’s pronouncement is not surprising—as The Wall Street Journal reported earlier this month, markets typically respond to Mr. Einhorn’s public comments on companies as copycats pile into his bets. Indeed, the Einhorn Effect is greater when the hedge fund manager takes a negative view of a company, with a median same-day decline of 4.9 percent on the nine shorts The Journal included in its study.
Footage of Mitt Romney’s remarks about the 47 percent voters who don’t pay taxes or depend on government assistance—”I’ll never convince them they should take personal responsibility and care for their lives”—was taken in the Florida home of Marc Leder, co-CEO of private equity firm Sun Capital Partners, said David Corn, the reporter who published video clips at Mother Jones. Mr. Leder, a part-owner in the Philadelphia 76ers, is as TPM points out, also known for his bacchanals: “At the Bridgehampton home that Leder rented for a whopping $500,000 a month, guests cavorted nude in a pool and performed sex acts, while scantily clad Russian women danced on platforms,” The New York Post reported last year.
Seattle may not be a sad sack sports town on the level of Cleveland, but its hard to begrudge Emerald City sports fans much of anything, given the largely irrelevant histories of the Seahawks, the Mariners, to say nothing of that time the Supersonics left town for better opportunities in Oklahoma City. So we can Read More
Morgan Stanley likes to tout the steady revenue provided by its wealth management franchise. At the same time, the bank is arguing that it’s Smith Barney joint venture with Citigroup is worth $13 billion less than Citi estimates. Bloomberg’s Michael Moore breaks down the process by which investment bank Perella Weinberg will assess the JV this week.
The median home price in Greenwich, Conn. fell 11 percent in the first seven months of the year, according to Bloomberg, as Wall Street cut jobs and pared compensation.
That’s the sense we get from Greenlight Capital founder’s second-quarter letter to investors, in which Mr. Einhorn also “throws France under the bond vigilante bus” (Zero Hedge), celebrates his successful short of Green Mountain Coffee Roasters (down more than 50 percent) and wonders when his wife, Cheryl, an adjunct professor at Columbia Business School, will quit poaching Greenlight research analysts.
The whole letter is up at Dealbreaker; a piece of Mr. Einhorn’s summary of the European situation is here:
Someone finally wrote the story that’s been the talk of baseball and banking circles ever since Guggenheim Partners CEO Mark Walter (over)paid $2.175 billion for the Dodgers in April: That what was good for the McCourts of Los Angeles might be even better for the Steinbrenners of Tampa. Indeed, the Daily News posits Read More
Eat My Shorts
David Einhorn, everyone’s favorite short seller (well, not everyone), said he was shorting Martin Marietta Materials at the Ira Sohn Conference today, and the producer of construction materials promptly dropped 8.3 percent. Over at the other end of the Nasdaq, Herbalife surged, presumably on news that Mr. Einhorn had not presented Read More
If, inexplicably, you’re not interested in JPMorgan’s stunning $2 billion loss on a derivatives position accumulated by a trader known as Voldemoort, the London whale and just plain old Bruno Iksil, we’ve got the news from the rest of Wall Street: