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- David Einhorn's hedge fund Greenlight Capital is bullish on Twitter.
- The fund cites restructuring and new management at the social media site.
- The hedge fund said it initiated a small position in Twitter in the fourth quarter at an average of $21.59 per share. Twitter is currently trading at $25.00, up around 16% on where Greenlight invested.
Greenlight Capital, David Einhorn's hedge fund, is bullish on Twitter.
In a fourth-quarter investor letter seen by Business Insider, Greenlight said new management at Twitter improved Twitter users' experience on the social media site, leading to a rapid rise in users and time spent on the site last year.
"We believe TWTR will have a pitch to advertisers in 2018, which should lead to revenue growth," the fund said.
Greenlight added: "Restructuring actions taken over the past year will allow much of the revenue to fall to the bottom line, and we expect TWTR to begin to close some of the 25% margin gap vs. its social media peers.
The hedge fund said it initiated a small position in Twitter at an average of $21.59 per share. Twitter is currently trading at $25.00, up around 16% on where Greenlight invested.
Greenlight underperformed last year, returning 1.6% after fees, compared to a 21.8% gain in the S&P 500 index, the letter said.
Representatives for Greenlight and Twitter declined to comment.
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