Santangel's Review


Greenlight Re Conference Call Transcript

David Einhorn has been in the news quite a bit for his iPrefs presentation and his legal fight with Apple. Lost in the news flow was his participation on the Greenlight Re fourth quarter conference call. Here are some relevant excerpts courtesy of Seeking Alpha’s Transcript.

“We believe the recent case against S&P is a negative for the rating agencies and Moody’s is not immune, we’re short both Moody’s and S&P’s parent McGraw Hill.”


“Our exposures at the end of January are 104% long and 75% short. Our current largest equity long positions are Apple, GM, Marvel, and Vodafone. GM has lots of cash on the balance sheet and recently initiated a buyback of a portion of the U.S. government stake. Prior to its January advance, Vodafone was trading at levels where we believe we get their 45% Verizon Wireless ownership stake for free stake, in addition to a 6% dividend yield. Apple, one of the world’s premier brands trades at a mid single-digit PE net of cash and has a fortress balance sheet with opportunities to unlock significant shareholder value.”


“Though the market made strong gains in 2012, many stocks are still attractively priced. On the other hand, the domestic economy has slowed down. U.S. GDP went negative in the fourth quarter and earnings growth has all but come to a halt. As the market continues to advance, even as the economy doesn’t, we tend to become less enthusiastic and we lowered our net long exposure from 39% at year-end to 29% at the end of January as we took some gains in our long portfolio and added to our shorts.”