Hedge Fund Greenlight Capital Posts 8.2% Q1 Return as It Bets Big on Gold (GLD)
Greenlight Capital has posted an 8.2% gain for this year's first quarter thanks to a big bet the hedge fund made on gold.
Stay Ahead of the Market:
Discover outperforming stocks and invest smarter with Top Smart Score Stocks.
Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener.
In a letter to investors, Greenlight founder David Einhorn said that the firm managed to beat the return of the benchmark S&P 500 index that declined 4.3% during Q1 because of its early pivot from stocks into gold, which was the hedge funds top performing security between January and March of this year.
'In late February we pivoted from conservative, but not bearish, to bearish,' wrote Einhorn in the letter. 'We suspect we are now in a bear market that is just starting.' The hedge fund manager added that the bet on gold should pay off further in coming months as U.S. President Donald Trump's tariffs and trade policies continue roiling financial markets.
Record High
News of Einhorn's move into gold comes on a day when bullion's price is up nearly 4% and trading at an all-time high of $3,352.70 per ounce. Gold's price has been hitting one record high after another this year as investors rush into the relative safety of the precious metal.
Einhorn noted in his letter to investors that privately held Greenlight Capital owns both gold bars and call options on the spot price of gold, adding that the price of the yellow metal rose 19% during this year's first quarter. Einhorn's Q1 performance was much better than most U.S.-based hedge funds, which lost 0.38% during the quarter, according to data from research group HFR.
Is the GLD ETF a Buy?
(GLD), so we'll look at the ETFs three-month performance instead. As one can see in the chart below, the GLD ETF has risen 18.84% in the last 12 weeks.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
1 High-Yield Vanguard ETF That Is a No-Brainer for Income
Given the market volatility this year, there are likely investors out there who would prefer an investment strategy that avoids some of the stressful market swings that have started to become the norm. After all, the broader benchmark S&P 500 index has already experienced multiple swings of nearly 20% both up and down, enough activity to make anyone's stomach churn. One way to avoid some of the stress in today's market is to diversify your investments across a broad basket of stocks through an exchange-traded fund (ETF). It's even better if you find an ETF that can generate passive income because then you are still making money each quarter and every year with much more predictability. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Here's one high-yield Vanguard ETF that is a no-brainer for passive income. This ETF has real energy The energy sector hasn't exactly crushed it this year. Many experts expect global oil prices to remain soft on weak demand, while the Organization of the Petroleum Exporting Countries (OPEC) moves to increase production, which will increase supply. However, the Vanguard Energy ETF (NYSEMKT: VDE) is still trading up close to 125% over the last five years (as of June 10). The ETF has 112 stocks in it and controlled $8.1 billion in net assets at the end of April. The fund's strong performance can be attributed mainly to the fact that ExxonMobil makes up nearly a quarter of its assets. The global oil and gas company has greatly improved operations over the last five years, controlling costs, generating strong returns on capital, growing free cash flow, and returning lots of capital to shareholders. ExxonMobil is a strong dividend payer, and between dividends and share repurchases, it returned $140 billion in capital to shareholders between 2019 and 2024. The ETF's dividend yield is 3.27% and the fund has a five-year average yield of close to 3.7%. Data by YCharts. The three largest sectors in the ETF are integrated oil and gas (39.3%), oil and gas exploration and production (25.7%), and oil and gas storage and transportation (17%). Here are the fund's top 10 holdings and their weightings: Rank/Holding ETF Weighting Rank/Holding ETF Weighting 1. ExxonMobil 24.45% 6. Kinder Morgan 3.00% 2. Chevron 13.29% 7. Cheniere Energy 2.99% 3. ConocoPhillips 6.61% 8. Oneok 2.91% 4. Williams Companies 4.06% 8. Schlumberger 2.59% 5. EOG Resources 3.55% 10. Marathon Petroleum 2.55% Source: Vanguard. Holdings are as of April 30, 2025. A good dividend in an intriguing sector Clearly, the Vanguard Energy ETF has a solid track record of paying a high-yielding dividend. I also think having some exposure to energy can serve investors well by acting as a hedge. While oil prices have been down, many of the world's richest investors, like Warren Buffett, are betting on energy prices going higher based on their latest stock purchases. It's possible that these investors think the world will be more reliant on oil and gas in the future than many believe. They are finite assets, so wealthy investors may see advantages to owning large oil and gas assets. According to the U.S. Energy Information Administration's International Energy Outlook report in 2023, global supplies of crude oil, other liquid hydrocarbons, and biofuels are expected to meet the world's demand for liquid fuels through 2050. Perhaps Buffett and other institutional investors betting on oil are taking the long view that supply could eventually become constrained. Or perhaps they think the oil and gas companies are positioned to adopt renewable energy or other lower-carbon sources. Regardless, energy stocks can be a decent hedge in a potential scenario when oil prices surge. The stocks in the Vanguard Energy ETF should benefit in this scenario, while rising prices could significantly increase costs for many other sectors. Should you invest $1,000 in Vanguard World Fund - Vanguard Energy ETF right now? Before you buy stock in Vanguard World Fund - Vanguard Energy ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard World Fund - Vanguard Energy ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor 's total average return is988% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
a day ago
- Globe and Mail
Warren Buffett Says to Buy This Vanguard ETF. It Could Turn $1,000 Per Month Into $245,000 in 10 Years.
Top fund managers consistently select individual stocks to build high-performing portfolios. While individual investors often believe they can do the same, and some actually might, the vast majority of people aren't as skilled at stock selection. Here's where the recommendation of Warren Buffett comes into play. The Oracle of Omaha suggests the right course of action for most people is to simply invest their money in a low-cost index fund, particularly one that tracks the performance of the broad market S&P 500 index. One exchange-traded fund (ETF) of this type that comes to mind is the Vanguard S&P 500 ETF (NYSEMKT: VOO). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Investors who choose this path and follow it consistently put themselves in a position to be rewarded over time. For example, investing just $1,000 per month in this ETF could result in a portfolio balance of $245,000 in 10 years. Here's what you need to know. Using history as a guide to the future In the past decade, the Vanguard S&P 500 ETF has produced a total return of 244%, with dividends reinvested. That's a fantastic outcome, likely buoyed by huge capital inflows into passive investment options over active strategies, generally solid economic growth, and the rise of several dominant tech enterprises. That trailing 10-year gain puts its compound annual growth rate at about 13% -- well ahead of the market's long-run average of 10% annually. For the sake of this article, let's assume that the next 10 years will resemble the last decade when it comes to returns. Of course, nothing is guaranteed, and the future is inherently unpredictable. But if you invest $1,000 per month between now and 2035 (for a total of 120 investments), you'd have around $245,000 in a decade. This is the power of dollar-cost averaging. You might think that to succeed as an investor, you have to make decisions like a pro and try to correctly time the market. The intention of buying low, selling high, and repeating the process sounds good in theory. However, it's virtually impossible to do well on a consistent basis. That's why a dollar-cost averaging approach makes the most sense: If you add more money to your portfolio consistently at regular intervals, you can be assured that you're taking advantage of the inevitable ups and downs of the market. Other benefits of this winning strategy Knowing that $1,000 per month can end up becoming $245,000 should be enough to get any investor excited about putting money to work in the stock market. There are other clear benefits to adopting this no-brainer strategy. For one, there's a strong chance the portfolio will beat a majority of the experts. Data shows that the performances of most actively managed funds lag the S&P 500 over long stretches of time. This doesn't prevent fund managers from charging high fees that further eat away at the returns of their investors. The Vanguard S&P 500 ETF, on the other hand, has an expense ratio of just 0.03%. That's a charge of $3 a year for every $10,000 a person has invested in the fund. That's hard to beat. Another benefit is that this is a hassle-free approach. Investors don't need fancy degrees or certifications, expert financial analysis skills, or hours of free time every week to listen to earnings calls. Putting money into the Vanguard S&P 500 ETF on a monthly basis is essentially an automatic investment allocation. It couldn't be simpler. It instantly provides investors with broad diversification into 500 of the largest U.S. companies. The ETF has exposure to all sectors, from technology and financial services businesses to energy and utilities. It's a bet on the growth of the American economy and on the premise that it will continue doing what it has always done. This seems like a smart bet to make. Buying $1,000 worth of the Vanguard S&P 500 ETF every month should put you on the path to building your wealth in the next decade and beyond. Should you invest $1,000 in Vanguard S&P 500 ETF right now? Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor 's total average return is988% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
a day ago
- Globe and Mail
3 No-Brainer Artificial Intelligence (AI) Growth Stocks to Buy With $200 Right Now
Artificial intelligence (AI) has become one of the most-talked-about topics on Wall Street over the last two and a half years. More than 40% of S&P 500 (SNPINDEX: ^GSPC) companies have cited "AI" on their earnings calls for five straight quarters, according to FactSet Insight. Practically every business is looking at how the recent innovations and influx of spending on AI can impact just about every aspect of their business. But while AI is providing a ton of growth for some, it can be a cost center without a clear payoff for others. However, even if a company falls into the former camp, investors should be wary about overpaying for growth that could slow down as the business scales. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Finding good value in AI stocks isn't easy. And if you have a limited investment budget, like $200, you'll want to make sure you're only buying the best available options. These three companies all have stocks that trade for less than $200 per share and offer excellent value for the growth potential ahead of them. All three are benefiting from the growth of AI and should play important roles in the future development of artificial intelligence and computing from here. 1. Alphabet Many investors are worried about the impact of artificial intelligence on Alphabet 's (NASDAQ: GOOG)(NASDAQ: GOOGL) core Google Search product. Apple 's Eddy Cue testified that search queries were down on its Safari browser during the month of April for the first time in 22 years, supporting the idea that AI services like ChatGPT are eating into its market share. But a decline in searches on a single browser, while surprising, isn't too concerning. AI is a bigger boost to Alphabet than a challenge. It's seen great success with its AI Overviews in search queries, which management says increase engagement while monetizing at the same level as traditional search results. It's also leveraged AI to offer new features like circle-to-search and Google Lens, which overindex toward valuable product searches. Artificial intelligence has been a massive driver of growth for Alphabet's Google Cloud business. It saw revenue climb 28% in the first quarter, with its operating margin expanding from 9.4% to 17.8%. Management said it remains supply-constrained, so strong revenue growth should continue. On top of that, Google's bigger cloud computing competitors sport even higher operating margins, so there's room to expand profits as it scales. At about $177 per share, the stock trades for about 18.5 times forward earnings expectations. That's well below comparable stocks, but Alphabet does have some regulatory pressure on its business on top of worries about how AI could negatively impact its cash flow. But with a massive cash-flowing business, an increasingly profitable cloud computing business, and a big capital return program, the stock looks very attractive at this level. 2. Qualcomm Qualcomm (NASDAQ: QCOM) isn't the chipmaker many people think of when they're talking about AI chip stocks. It doesn't make high-end GPUs or custom silicon solutions for AI training or inference. It makes chips that primarily end up in smartphones. But Qualcomm has plans to enter the data center business, focusing on CPUs designed to work in tandem with AI accelerator chips. It believes its expertise in low-power, high-performance chips for smartphones will translate into very effective chip designs for data centers. It recently agreed to acquire Alphawave Semi with the aim of bolstering its data center capabilities. The company will face significant competition in that market, but not all AI inference will take place in the cloud. There's a growing push to perform AI processing on devices themselves, which provides advantages in security, privacy, and speed. To that end, Qualcomm is well-positioned to see a growing share of the market, as its Snapdragon mobile processors are found in most high-end Android devices. As on-device AI becomes a differentiator, demand for high-end devices could increase, boosting Qualcomm's mobile processor sales. In the meantime, Qualcomm holds the patents for wireless baseband chips found in practically every phone. As a result, it collects a royalty for every smartphone sale. Apple is notably moving away from Qualcomm, developing its own chipsets, but the process is a big hurdle. Few other phone makers have the capability, capital, or scale necessary to cut out Qualcomm. As such, the licensing business should provide a stable source of earnings for the business for the foreseeable future. At around $160 per share, the stock trades for just 13.5 times forward earnings. That's an incredible value for a company with strong long-term positions in Android phones, and it seems Apple's moves are weighing too heavily on the stock. With a potential data center business on the horizon, it could have another big business like its mobile processors. But even with just the mobile chips and licensing business producing steady free cash flow, it's still a great value at this price. 3. Applied Materials While cloud computing providers are trying to stock their data centers with more and more chips for artificial intelligence training and inference, somebody has to make those chips. And in order to do that, you need specialized equipment. That's where Applied Materials (NASDAQ: AMAT) comes in. The company produces a broad portfolio of wafer fabrication equipment, including etching, deposition, and process control. Applied Materials' ability to participate in all of those areas gives it an advantage. It can cross-sell manufacturers on its equipment, allowing it to compete with more specialized equipment makers. And as one of the largest equipment providers, it also has more revenue to reinvest in R&D to produce the next generation of equipment or expand its portfolio, creating a virtuous cycle and extending its technology lead. The push to expand chip production has been a boon for Applied Materials. Despite sales restrictions in China and slower growth in the automotive segment, the equipment maker grew sales 7% in the first quarter. The shift toward more high-end devices also helped expand its gross margin to over 49% last quarter. Applied Materials' product is extremely sticky, too. Once a manufacturer buys its equipment, it wants to get the most out of it. That means a long product life and recurring service revenue. With the stock trading at about $175 per share, it sports a forward P/E of about 18.5. That's a great value for a company growing revenue at a steady high-single-digit clip with expanding margins. While the business can be cyclical, the long-term trend is for more and more advanced chip sales. Applied Materials is well-positioned to capitalize on that trend, and its current stock price gives investors a great opportunity to buy into it. Should you invest $1,000 in Alphabet right now? Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Adam Levy has positions in Alphabet, Apple, Applied Materials, and Qualcomm. The Motley Fool has positions in and recommends Alphabet, Apple, Applied Materials, and Qualcomm. The Motley Fool has a disclosure policy.
