Monday, January 19, 2009

Greenlight Capital's Investments in Europe

Revised since originally posted.

Activist investor David Einhorn talks with The Financial Times in July 2008 about his distressed debt investment strategy in Europe.

Click here to view the video.

Seperately, and more recently, Einhorn has disclosed he has raised his stake in Punch Taverns PLC (PUB), a UK-based pub management company, to over 8% again. Last year, his hedge fund, Greenlight Capital, owned about 12% of the Company before reducing their position to 7.4% just before the New Year.

PUB currently sells at 38.5p, which is down from 750p one year ago, representing a loss of 93% in value. Greenlight's cost basis is around 200p.

This is not Einhorn's first investment in Europe and will not be his last. In March, Greenlight opened an office in London to explore investment opportunites throughout Europe. In August, Einhorn began his first activist campaign by opposing a highly dilutive EUR 3.7bn rights issue at Natixis, a French investment bank. Ultimately Einhorn was unable to block the transaction. Natixis is currently down 83% on a 52-month basis.

Posted by Marko Grassmann in Europe.