Greenlight Capital was founded at the beginning of 1996, mainly by David einhorn and his colleagues. David einhorn worked in an investment bank for two years in his early years, and then went to a hedge fund called Siegel Cowlery. The hedge fund is very concerned about the documents submitted by the investment target company to the Securities and Exchange Commission. For them, analyzing a company needs to solve three basic problems: 1) What are the real economic benefits of the company's business? 2) How do these economic benefits compare with the company performance report? 3) What is the consistency of interests between company decision makers and investors? Green light capital is mainly applied to the investment skills learned in Siegel Cowley Company, that is, to analyze the economic value of the company and the consistency of interests between decision makers and investors. But unlike traditional value investment, Greenlight Capital is more concerned about why a security is mispriced in the market. In other words, Greenlight Capital believes that they need to understand why this opportunity exists, so that they have a greater analytical advantage than their counterparties. If they are convinced of this, then such an opportunity is worthy of attention. At the same time, Greenlight Capital adopts the following investment strategies: 1) To make money for every investment, or at least to break even. The stocks concerned by Greenlight Capital must have a sufficient degree of mispricing; 2) Two-way trading, that is, undervaluation and overvaluation. There is no need for index hedging, because Greenlight Capital believes that shorting a single stock with poor risk-return characteristics can create more profits. 3) Concentrate investment. Holding 8 stocks will eliminate the 8 1% risk of holding1stock, and holding 32 stocks will eliminate 96% risk. Greenblatt thinks: After buying six or eight stocks from different industries, adding more stocks to the portfolio will not bring any benefits in order to reduce risks. After three or four months of preparation, Greenlight Capital raised $900,000. It was put into operation in May 1996. Earned 37. 1% in the first year, and managed assets reached130,000 USD at the end of the year. The next year, that is, 1998, they made another 57%. By the end of 1998, their assets under management had risen to $75 million. It took Greenlight Capital two years to solve the problem of the survival and development of hedge funds. As of June 30th, 20 13, the total assets managed by Greenlight Capital were USD 5.33 billion, with a compound annual rate of return of 19.5%. More information about Greenlight Capital:. com/node/ 16363。