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Greenlight Capital 2Q Letter

The Greenlight Capital funds (the “Partnerships”) returned (4.0)%,1 net of fees and expenses, in the second quarter of 2017, bringing the year-to-date net return to (2.8)%. During the second quarter, the S&P 500 index returned 3.1%, bringing its year-to-date return to 9.3%. The second quarter was a bit of a head-scratcher. Our five biggest longs reported earnings that met or exceeded expectations, while our shorts announced earnings that mostly disappointed. Nonetheless, we lost money in the quarter.

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Andri Capital Letter To Gulf Resources

In recent years the company has fared well. Revenues have grown by approximately 50% since 2012, profits more than doubled and earnings per share increased by roughly 80%. However, shareholders of GURE – the owners of the company – have not benefited accordingly.

Since the beginning of 2012 the Company’s shares have mostly seesawed between $1-$2.5/share and delivered a negative return of approximately -6%. At the time of writing the shares trade at $1.61/share, which is also 83% below the IPO price in 2009. Since the company does not pay dividends or engage in share repurchases the shareholders have not reaped the rewards of the business’ success.

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