New York (HedgeCo.net) – The tables have turned on David Einhorn and Dan Loeb, two hedge fund managers that are noted short sellers, as the reinsurers each of them formed have been the subject of bearish speculation in recent months.

According to a report from Bloomberg, Einhorn’s Greenlight Capital Re, Ltd. (Nasdaq: GLRE) has seen short interest grow to its highest level since 2009 and now represents 5.4% of shares outstanding. In another measure of bearish sentiment, the short interest ratio of shares sold short to the average daily trading volume, GLRE’s short interest ratio is currently at 10.61 according to Yahoo Finance.

Loeb’s Third Point Reinsurance Ltd. (Nasdaq: TPRE) is also seeing an increase in bearish sentiment with 3.67 million shares sold short for a short interest ratio of 15.67 and 4.34% of the float sold short according to Yahoo Finance.
The bearish positioning is paying off as Greenlight is down over 42.5% on a year to date basis through Wednesday’s close. For Third Point the loss is considerably more modest at 6.07% on the year.

Rick Pendergraft
Research Analyst
HedgeCoVest