In a week’s time I will officially step down as CEO of Greenlight Re and (inaudible) over to Bart while I continue to serve Greenlight Re as a Director. I’m proud of the team we have build and our ability to capitalize on opportunities in the market. It has been a great partnership for the last 5.5 years and I’m confident that Bart will continue his successful development of our company. Together we have developed a strong deep and talented organization that we believe will excel in both good times and difficult times.
And now I’d like to turn the call over to our Chairman, David Einhorn, to discuss our investment results in more detail and the progress of Greenlight Re’ overall strategy.
Thanks Len and thanks everyone for joining us today. The Greenlight Re investment portfolio was down 1.9% in the second quarter of 2011 brining our first half of 2011 net returns to negative 5.2%. In the volatile yet relatively flat second quarter for the S&P, our long portfolio was up slightly but our short portfolio was up a little bit more than the market in losses in our euro and yen positions more than offset a slight gain in goal.In July we had a small loss on our longs and positive returns for our shorts and macro positions which added up to a gain for over 1% for the month. Although, we had a slight gain in our short portfolio in June and July, the loss in our investment portfolio for the first half of the year came from our shorts. As we saw at the end of the internet bubble, markets have performed when it simply becomes too expensive on the day-to-day basis to hold (inaudible) research in short positions. In the first half of the year we witnessed the bifurcated market where a small number of momentum starts rose mostly because they were rising. These markets continue until they don’t and we have seen what can happen when the enthusiasm ends. It is also becoming increasingly clear that the (inaudible) economic stimulus through [QE2] was not only ineffective but has brought about inflation in items that consumers use on the daily basis such as food and energy. This has caused consumers to have to reduce other consumption which has caused a global economy to slow. Read the rest of this transcript for free on seekingalpha.com