David Einhorn's Greenlight Capital, the $8 billion hedge fund,
released its second-quarter update to clients Friday and the
poker-playing hedge fund manager's musings helped boost at least
Shares of the Market Vectors Gold Miners ETF (NYSE:
) rallied closed near their highest levels of the day, up roughly
one percent, after Einhorn confirmed that gold
remains one of Greenlight's largest positions
Einhorn did not go into specifics, but Greenlight's
first-quarter 13F filing
showed the hedge fund
had exposure to both individual mining and GDX.
At the end of the first quarter, Greenlight owned over six
million shares of GDX and nearly two million shares of Barrick
according to the filing
. Barrick is GDX's second-largest holding at 10.7 percent of the
Given that GDX is down over 41 percent year-to-date, it is not
a stretch to say the trade has been a loser for Greenlight, but
the firm's clients can find some comfort in knowing the ETF is up
23.5 percent in the past month.
Einhorn Could Have a Mining Problem
Shares of the Global X FTSE Greece 20 ETF (NYSE:
) also closed near the highest levels of the session after
Greenlight revealed "medium-sized long positions" in Alpha Bank
and Piraeus Bank. Those stocks are GREK's fourth- and
sixth-largest holdings, respectively, combining for 14.2 percent
of the ETF's weight.
What is interesting about the Greek bets is that Greenlight
invested in an emerging market. That is exactly what Greece is
by not one, but two major index providers
, MSCI (NYSE:
) and Russell Investments.
For more on ETFs, click
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