Santangel's Review

Commentary

David Einhorn’s Comments on the GLRE Conference Call

David Einhorn also made a few interesting comments on GLRE’s quarterly conference call last week. Here is the link and below are the highlights:

“Despite rising markets, which have been supported by the various central bank monitory policies of continual printing, we are considered about several headwinds which conclude an economic slowdown in Europe, Japan and China, arising key commodity prices, including food and energy and a slight determination in corporate earnings growth.

During the quarter we cut our net exposure in half and we ended the September more conservatively positioned at 26% net long. Our gross short exposure increased from 53% to 70% and we had a modest decrease in our gross long exposure as we took some profit in the rising market.”

 

“I recently shared my thesis about long positions in both Cigna and General Motors at the Value Investing Congress on October 2. I also updated my thinking on our short position in Green Mountain Coffee Roasters and discussed the challenges facing Chipotle Mexican Grill. Later on in the month I spoke about the challenges facing the iron ore market and the companies in the iron ore ecosystem. We continue to closely watch the actions of central bankers and maintain a sizable position in fiscal goal, as well as other asymmetric risk reward macro hedges, to help protect against potential negative ramifications of desperate monitory policies, the tenuous fiscal position of many countries and the risks associated with the coming U.S. election and fiscal cliff in early 2013.”