How on earth did David Einhorn’s Greenlight Re contrive to lose 11.5% on its investment portfolio in September, the month that Lehman Brothers went bust? Einhorn has famously been short Lehman for many months, and the short-selling ban didn’t apply to existing short positions, only to new ones.
Clearly this result wasn’t expected: Greenlight is down 25% today. Did Einhorn suffer a crisis of confidence and cover his shorts too early?