Greenlight Capital’s David Einhorn, about to have his best quarter ever, revealed how he managed to beat the market during recent turmoil and revealed a new bet on Twitter. His hedge fund returned 8.4% in the second quarter of 2022, bringing its first half performance to 13.2%. The quarterly performance relative to the S&P 500 marks Einhorn’s best-ever performance in his company’s history. The star manager attributes his stellar year to his pivot to stock valuation and his preference for companies with large buyback programs in place. “We don’t rely on other active investors to buy the shares we own, so instead we choose to emphasize investing in companies that appreciate this dynamism and are generating value through their operations and through the repurchase of their own shares at very low prices, Einhorn said in an investment letter on Monday. big buyback Einhorn said he still thinks we’re in a bear market as the Federal Reserve tries to tamp down rising inflation by aggressively raising interest rates. his company reduced its long-term gross margin to 86 percent at the end of the second quarter from 127% at the start of the year. for future opportunities, however, a buy in the quarter caught the eye of investors.Einhorn had a long position on Twitter, paying an average $37.24 in stock, as the social media company sued to force Elon Musk to buy the company after the billionaire rejected the deal. “At this price, there’s $17 per share going up if TWTR wins the court case, and we believe about $17 per share going down, if the deal breaks. are getting 50-50 odds of something happening 95%+ of the time,” he said in the letter. Einhorn has a grudge against Musk. He was once one of Tesla’s biggest takers on Wall Street, in the face of concerns about the electric carmaker’s safety, price cuts and demand. Tesla’s well-known critic even once called the company’s promises about self-driving cars “horses — t.” Investors have gone in and out of their short positions over the years. Most recently, he bought Tesla shares in the first quarter.