Billionaire David Einhorn’s hedge fund crushed the market last quarter by investing in gold

• The David Einhorn’s Hedge Greenlight Capital Fund has achieved 8.2 % in the first quarter.

• In a message to investors, Greenlight said that gold was “the largest winner” in its wallet.

• The company warned that the bear market in the stocks has just started.

The investor of the gold billionaire struck in the last quarter through his investment.

Greenlight Capital gained 8.2 % in the first quarter, easily exceeding the loss of more than 4 % in the S&P 500.

Greenlight, who said he possessed both gold bars and call options, was a good performance against the hedge of the hedge. The average box loses 0.4 % in the first quarter, according to the HFR research group.

The company said that inflation bodies were an additional incentive to excel. Between the bares and gold – which is seen as an inflation – the expectation of the high prices of consumer is the subject through the green light wallet. The higher inflation expectations have been fixed for Trump’s presidency since the World Trade War began.

“We believe that all current management policy methods lead to an increase in inflation,” the company wrote.

One of the most prominent in the green light message is to emphasize that the American stock market is in the early roles of the bear market. The company was able to determine exactly when it decided to throw the towel on the shares.

The message said: “Speak that the market was turning, in late February,” the letter said.

When predicting the bear market, Greenight has decreased from a net exposure of the stocks to isolate itself from the sharp declines and the rise in the anti -direction.

The message said: “The bear markets are not launched directly. It is included in the” Rip-Your-Fac -f “marches based on the large headlines, the feeling of extremist investors, and the experience that usually pays its fruits to buy DIP.

Below is a group of other exchanges that were identified in its message in the first quarter:

• Short positions on companies that “meet liberal tastes”: Greenlight expects democratic consumers, given their unpopular exposure to recent federal job discounts.

• Long position in Sofr Futures: These investments are put on profit if interest rates in the Federal Reserve reduce faster than the market, which is expected by Greenlight.

• “Tail Protection” of the dollar: Greenlight added this position in the event of Greenback dramatically against the euro and Elin. This has already happened.

• Long -term inflation bodies: As mentioned above, the company expects that most Trump administration policies will lead to long -term high inflation.

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