Greenlight Capital and Fidelity are two major investment management firms in the US. Investing with them provides access to professional fund managers and a wide range of investment products. This article will introduce Greenlight and Fidelity’s background, investment strategies, major funds and products, fees structure, and performance history. It will also provide actionable suggestions for investors looking to allocate capital through Greenlight or Fidelity, key factors to consider, and risks involved.
Introduction of Greenlight Capital and its founder David Einhorn
Greenlight Capital is a US long-short equity hedge fund founded in 1996 by David Einhorn. Einhorn is one of the most famous short sellers and value investors, known for his successful short of Lehman Brothers prior to the 2008 financial crisis.
Greenlight follows a long-short investment strategy, going long undervalued stocks while shorting overvalued ones. The fund has generated annualized returns of 19.4% since inception. Some of Einhorn’s most famous investments include Apple, GM, gold, and shorts on Allied Capital and Lehman Brothers.
Fidelity’s background and core investment products
Founded in 1946, Fidelity is one of the largest asset managers globally with over $11 trillion in assets under management. It provides a full range of investment products and services including mutual funds, ETFs, institutional asset management, brokerage, retirement products, wealth management, and research.
Some of Fidelity’s most popular offerings for retail investors include Fidelity 500 Index Fund, Fidelity Contrafund, Fidelity Zero Large Cap Index Fund and Fidelity ZERO Total Market Index Fund. Many of these products have delivered market-beating returns over the long run with low management fees.
Ways to invest with Greenlight Capital and Fidelity
For accredited investors, Greenlight Capital offers investments through its main hedge fund Greenlight Masters as well as a offshore fund Greenlight Masters International. The fund requires a minimum $1 million investment with 1 year lockup and quarterly liquidity. Management fee is 1.5% of assets under management and 20% performance fee on positive returns.
As a retail investor, the easiest way to access Fidelity’s investment capabilities is through its mutual funds and ETFs. Depending on risk appetite and investment objectives, suitable products can be selected across asset classes like domestic equity, international equity, fixed income, commodities, etc. No minimums are required and the costs are generally low.
Factors to consider and risks overview
When investing with Greenlight Capital or Fidelity, key factors to evaluate include historical performance, investment strategy and process, portfolio composition and holdings, risks and drawdowns, fees and expenses, fund manager backgrounds, minimum investments, liquidity terms, etc.
While both Greenlight and Fidelity have delivered market-beating returns historically, any investment carries risks including loss of capital. Investors should assess their risk tolerance and diversify appropriately before committing a large portion of capital to a single strategy or manager.
Greenlight Capital and Fidelity Investments are two highly reputable investment managers with differentiated investment approaches. Accredited investors can get exposure to Greenlight’s long-short stock picking strategy while retail investors can easily invest in Fidelity’s mutual funds and ETFs. By evaluating historical performance, investment process, risks, fees and other key factors, investors can make informed decisions on allocating capital to take advantage of their professional investment capabilities.