Gold is slamming hedge fund manager David Einhorn.
Greenlight Capital’s main hedge fund has fallen about 3% year-to-date, driven in part by the slump in gold prices, according to a Bloomberg report on Tuesday.
In turn, Greenlight Capital Re, the reinsurance operation Einhorn runs which trades on the Nasdaq, is down 16% this year.
A little over a week ago, gold fell 4.2%, or about $US50 an ounce, in a matter of seconds.
After that, it slid even lower to levels it hasn’t touched since 2010. On Tuesday, gold fell to as low as $US1,091.20 an ounce.
In 2013, Greenlight’s gold fund fell more than 20% when gold prices slumped, according to Reuters. The fund offers a share class backed by physical gold. Einhorn had said he preferred to invest in gold bars instead of ETFs that track the commodity.
In the first half of the year, Greenlight’s main fund fell 3.3% and slipped 1.5% in a “challenging” second quarter, according to Einhorn’s letter to investors seen by Business Insider.
The commodities rout is also hitting other hedge funds. On Monday, Bloomberg reported that London-based Armajaro Asset Management is planning to close a commodities fund worth $US400 million after losing 11% in the first half of the year.
Today’s report noted that hedge fund manager John Paulson also made bullish bets on gold.
Here’s the ugly 12-month chart of gold:
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