Greenlight’s Ainhorn blames ‘disgraced’ regulators for ‘anarchy’


Prominent hedge fund manager David Ainhorn has fired U.S. financial regulators for allowing “semi-anarchy” to spread in the market due to inaction on various financially controversial issues.

President of Greenlight Capital w Gamestop controversy Its the last Letters from investors, Arguing that the market storm surrounding the fight video game retailer in late January was intensified by “a critical moment” by capitalists Chamath Palihapitiya and Tesla Elon Musk of concern.

However, his most provocative remarks gave several examples of what he saw at the U.S. regulators and lawyers who paid them at Missing or supine applicator The rules and regulations that govern the market.

“In most cases, there are no cops in the spit,” he said. Ainhorn Wrote. “As if there is no financial fraud prosecutor; Organizations and managements that have been encouraged enough to engage in malfunction have little to fear. “

Hedge fund managers say healthy general investors have discussed and appreciated stock betting online. Keith Gill, The retailer who spread the gamestop frenzy, for a “great call”. Ainhorn, however, argued that Congress should hold hearings on more weak enforcement than just considering the gamestop situation.

“From a traditional perspective, the market is in the process of collapsing and possibly collapsing completely,” he wrote in the letter. “Many who have never supported insulting the police have supported it – and succeeded in all their intentions and motives – in almost complete removal if the regulators did not defame. In most cases, semi-anarchy reigns in the market.

Ainhorn highlighted how regulators are letting small investors suffer Hometown International, A microstock that he said owned a single shop in rural New Jersey, but was valued at 3 113 million as of Feb. 8 – despite selling only, 13,97676 last year. “Pastrami will definitely be amazing,” he said.

Many have criticized how the Securities and Exchange Commission has slowed down Fully implemented Parts of the post-crisis Dodd-Frank Act passed more than a decade ago. This was one of the reasons behind how the opaque investment group Archegos caused billions of dollars in losses to banks in late March and was finally able to create huge store market bets.

Ainhorn, who plays poker, first topped the list for a large, presidential bet against Lehman Brothers’ stock in the financial crisis, and at its peak in 2012, Greenlight Capital managed about 12 12 billion.

However, Ainhorn has a value-based investment system Fighting since then, And bombed some of its most prominent short positions – significantly betting it against electric car maker stock Tesla.

In his quarterly letter, Ainhorn once again jumped on Tesla’s founder Kastur, this time for “jet fuel” in the flames of the GameStop story. He argued that rival investors at Robinhood Brokerage at the center of Kastur – commenting on the critical moments of Musk and Palihapitiya – had “further destabilized the situation”.

However, Ainhorn doubted that any regulator would take action. “If regulators wanted to stop the transfer of Elon Musk stock, they should have done more than slap the wrist lightly when they were accused of manipulating Tesla shares in 2018.” “The laws don’t apply to him and he can do whatever he wants.”

Kasturi and Palihapitiya were not immediately available for comment.



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