This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Einhorn's Arbitrage Skills Tested With Vodafone (Update 2)

A heating of Vodafone's M&A prospects comes at a time when many Greenlight Capital investments take the spotlight.

Greenlight has maintained a short trade in rating agency Moody's (MCO), which cost the fund its largest short portfolio loss in 2012. That investment and a newly opened short against McGraw-Hill (MHP), owner of Standard & Poor's may yet payoff as the Department of Justice pursues fraud charges related to mortgage bond ratings.

Escalating scrutiny on the credibility of pre-crisis mortgage bond ratings could also throw Einhorn in direct contest with Warren Buffett of Berkshire Hathaway, who remains one of Moody's largest shareholders.

Einhorn may also have to address previously disclosed short positions such as a backfired trade against materials giant Martin Marietta (MLM), which has risen sharply since Einhorn said the company's earnings would suffer from a withdrawal of government stimulus.

For now, Einhorn may not have picked the biggest merger in history as a first notable arbitrage trade. Still, the increasingly vocal hedge funder's investment in Vodafone may eventually bear fruit for Greenlight in the event of a Verizon Wireless deal.

-- Written by Antoine Gara in New York.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $122.99 -0.32%
T $34.69 1.05%
VZ $46.56 1.46%
VOD $37.61 2.01%
FB $96.99 1.78%

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs