{"id":254119,"date":"2023-01-17T16:08:46","date_gmt":"2023-01-17T22:08:46","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=254119"},"modified":"2023-06-01T10:38:25","modified_gmt":"2023-06-01T15:38:25","slug":"einhorn-hedge-fund-may-be-or-have-been-short-draftkings","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/einhorn-hedge-fund-may-be-or-have-been-short-draftkings\/","title":{"rendered":"David Einhorn’s Greenlight Capital Bubble Basket May Have Been Short DraftKings"},"content":{"rendered":"

David Einhorn\u2019s Greenlight Capital is coming off one of its best annual performances on record, and a possible short position in DraftKings (NASDAQ: DKNG) may have been among the contributors to the hedge fund\u2019s stellar 2022 showing.<\/p>\n

\"\"
Hedge fund manager David Einhorn, above. His Greenlight Capital may be short DraftKings. (Image: Yahoo Fiance<\/em>)<\/figcaption><\/figure>\n

In an investor letter, Einhorn said his fund returned 36.2% last year while the S&P 500 plunged 19.4%. Greenlight\u2019s \u201cbubble basket\u201d — a collection of stocks the hedge fund shorts — sank in 2022, which was good news for short sellers, as growth equities tumbled amid rising interest rates<\/a>. It\u2019s believed the ARK Innovation ETF (NYSEARCA: ARKK) — one of the largest fund owners of DraftKings — is the inspiration for the bubble basket.<\/p>\n

In early 2021, we also identified an actively-managed ETF of so-called \u2018innovation\u2019 stocks that appeared to us to have significantly similar characteristics to our bubble names,\u201d wrote Einhorn in the investor letter.<\/p><\/blockquote>\n

He doesn\u2019t mention the ARKK Innovation ETF by name. But given the tumbles experienced last year by the fund\u2019s holdings, including DraftKings, and the performance of the Greenlight bubble basket, it\u2019s likely ARKK is the exchange-traded fund (ETF) in question.<\/p>\n

DraftKings Favorite of Some Short Sellers<\/h2>\n

Likewise, DraftKings wasn\u2019t directly mentioned by Einhorn in the letter to clients. But, the stock is owned<\/a> by ARKK Investment Management across several of its ETFs and is the 15th<\/sup>-largest holding in the aforementioned ARKK. The ETF is actively managed, meaning its holdings can change frequently. DraftKings is currently the only gaming name in the fund.<\/p>\n

Assuming Greenlight is, or was, short on DraftKings — Einhorn told investors the hedge fund maintains short positions in some bubble basket components — he\u2019d add to the list of well-known professional market participants that have bearish views on the online sportsbook operator.<\/p>\n

\n

In 2021, Kynikos Associates founder Jim Chanos revealed his firm was short on DraftKings, citing a flawed business, among other factors. He reiterated that bearish view last year<\/a>. Chanos hasn\u2019t publicly revealed whether or not Kynikos still has that position, but it\u2019s likely a profitable one because DraftKings lost more than half its value last year.<\/p>\n<\/div>\n

Since becoming a standalone public company in early 2020, DraftKings has been a favorite target of short sellers.<\/p>\n

Einhorn Doesn’t Shy Away From Risk<\/h2>\n

Einhorn, himself a high-level poker player<\/a>, is no stranger to taking risks, with both good and bad results.<\/p>\n

We are nothing if not persistent. In March of 2021, we again believed that the bubble had popped … this time correctly,” Greenlight stated in the letter. “We created our third bubble basket with thirty-one names totaling 6.5% of capital. This bubble basket remains in the portfolio, though we have covered some names.\u201d<\/p><\/blockquote>\n

Greenlight has previously held long positions in some gaming stocks, including shares of some companies with exposure to sports wagering.<\/p>\n","protected":false},"excerpt":{"rendered":"

David Einhorn\u2019s Greenlight Capital is coming off one of its best annual performances on record, and a possible short position in DraftKings (NASDAQ: DKNG) may have been among the contributors to the hedge fund\u2019s stellar 2022 showing. In an investor letter, Einhorn said his fund returned 36.2% last year while the S&P 500 plunged 19.4%. […]<\/p>\n","protected":false},"author":46,"featured_media":275651,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,83771,1074],"tags":[81903,81907,80968],"acf":[],"yoast_head":"\nEinhorn Hedge Fund May Be Or Have Been Short DraftKings<\/title>\n<meta name=\"description\" content=\"David Einhorn\u2019s Greenlight Capital may be or have held short position in DraftKings.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/einhorn-hedge-fund-may-be-or-have-been-short-draftkings\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Einhorn Hedge Fund May Be Or Have Been Short DraftKings\" \/>\n<meta property=\"og:description\" content=\"David Einhorn\u2019s Greenlight Capital may be or have held short position in DraftKings.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/einhorn-hedge-fund-may-be-or-have-been-short-draftkings\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-17T22:08:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-01T15:38:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/Screen-Shot-2023-06-01-at-10.37.06-AM.png\" \/>\n\t<meta property=\"og:image:width\" content=\"650\" \/>\n\t<meta property=\"og:image:height\" content=\"404\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/einhorn-hedge-fund-may-be-or-have-been-short-draftkings\/\",\"url\":\"https:\/\/www.casino.org\/news\/einhorn-hedge-fund-may-be-or-have-been-short-draftkings\/\",\"name\":\"Einhorn Hedge Fund May Be Or Have Been Short DraftKings\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/einhorn-hedge-fund-may-be-or-have-been-short-draftkings\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/einhorn-hedge-fund-may-be-or-have-been-short-draftkings\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/Screen-Shot-2023-06-01-at-10.37.06-AM.png\",\"datePublished\":\"2023-01-17T22:08:46+00:00\",\"dateModified\":\"2023-06-01T15:38:25+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"David Einhorn\u2019s Greenlight Capital may be or have held short position in DraftKings.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/einhorn-hedge-fund-may-be-or-have-been-short-draftkings\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/einhorn-hedge-fund-may-be-or-have-been-short-draftkings\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/einhorn-hedge-fund-may-be-or-have-been-short-draftkings\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/Screen-Shot-2023-06-01-at-10.37.06-AM.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/Screen-Shot-2023-06-01-at-10.37.06-AM.png\",\"width\":650,\"height\":404,\"caption\":\"Hedge fund manager David Einhorn at a poker tournament. 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