David Einhorn's Greenlight Capital fully exited its position in Victoria's Secret & Co. (VSXY) after a year-long investment, generating a 157% internal rate of return. This move signals a successful turnaround play for the hedge fund, but also removes a significant institutional investor from the stock.
David Einhorn's Greenlight Capital, a prominent hedge fund, built a substantial stake in Victoria's Secret (VSXY) over a year, viewing it as a turnaround opportunity. The fund successfully capitalized on the company's brand refresh and management changes, achieving a 157% return before completely divesting its holdings. This matters because Einhorn is a respected investor, and his exit, while profitable for his fund, could be interpreted by some as a signal that the easy gains from the turnaround story might be over. For traders, this presents a short-term opportunity to assess if the stock can maintain its momentum without this institutional backing, or if the recent cooling in performance (0.33% up over the past month) indicates a potential slowdown.