New York (HedgeCo.net) – Alternative investment firms continue to post poor second quarter results. On Monday, Greenlight Capital RE, the reinsurer headed by David Einhorn, reported a second quarter loss of $39.6 million on revenue of $67.6 million. Shares of the company were down over two percent in Tuesday’s trading and are down almost 20% on the year.
Einhorn addressed the company’s performance on a conference call Tuesday morning, stating “The overall market environment has become acutely unfavorable for our investment strategy.”
Einhorn went on to say, “While we could have done better in a couple of spots, we don’t expect to do well when investors shunned value stocks in favor of momentum stocks. We’ve experienced this type of dynamic a few times before and in each case, the short-term results been painful for us. As before, we expect that the environment will improve and we will recover.”
Greenlight joins the likes of Fortress Investment Group, Carlyle Group LP and Blackstone Group as alternative investment firms that have issued disappointing earnings results in the last few months.