Einhorn and the Mets

June 2, 2011 James Heinsman Hedge Fund News

David Einhorn of Greenlight Capital has purchased a minority stake in the Mets.

More than a few people have speculated on this move. Wall Street investors have been collecting sports teams for years. In 2002, for example, Stephen Pagliuca of Bain Capital helped buy the Celtics, who later won the championship. Others, however, were not as successful, and their teams and profits did not thrive.

When Einhorn purchased the stake, Greenlight Capital sent out an announcement stating “David will continue to have the vast majority of his net worth invested in Greenlight products: the hedge funds, Greenlight Masters and Greenlight Re. His role as president and portfolio manager of Greenlight Capital will not change in any way.”

However, the author of “More Money Than God: Hedge Funds and the Making of a New Elite” Sebastian Mallaby has said “An obsessive focus on work is part of what makes hedge fund managers succeed.” He added, “David Swensen, the great hedge fund talent scout who runs the Yale endowment, says that he looks for this not-quite-normal single-mindedness when he decides where to commit Yale’s money. So it is clearly a red flag when a hedge fund manager starts to take too much pleasure in his hobbies.”

David Einhorn, Greenlight Capital, Hedge Funds, Mets, Mets Stake,

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