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Fr. Emmanuel Lemelson | |
Orders | |
Ordination | July 23, 2011 by Metropolitan Elpidophoros the Abbot of the Theological School at Halki |
Personal details | |
Born | (1976-06-29)June 29, 1976 Phoenix, Arizona, United States |
Occupation | Priest, cultural leader, social activist, investment manager |
Emmanuel Lemelson (born June 29, 1976 as Gregory M. Lemelson) is a Greek Orthodox priest, cultural leader and social and investment activist who has gained notability for advocating a philosophy of investment based on Christian ethics. He is the chief investment officer of Lemelson Capital Management, the sole sponsor and general partner of The Amvona Fund, LP, which several times has been named the world's top performing hedge fund according to financial media outlets The Wall Street Journal, Barron's, BarclayHedge and Prequin.
Lemelson’s position on ecumenism and the role of the Orthodox Church have been cited in The Washington Post, CBS News, Fox News and The Boston Herald. His investment research and analysis has been cited regularly in The Wall Street Journal, USA Today, New York Post, Fox Business Network, and TheStreet.com and credited with influencing share prices in publicly traded companies.
Lemelson is also the founder of The Lantern Foundation, which focuses on supporting religious, charitable and educational causes with a special focus on those associated with the Ecumenical Patriarchate of Constantinople.
Early life and education
Lemelson was born Gregory M. Lemelson in Phoenix, Arizona, the son of Larry R. and Katerina C. Lemelson. He attended Geschwister-Scholl-Schule in Tübingen, Germany and then Mercer Island High School in Mercer Island, Washington, where he graduated in 1993.
Lemelson attended Seattle University, where he received a Bachelor of Arts in Theology and Religious Studies in 1999, and then Hellenic College Holy Cross Greek Orthodox School of Theology, where he received a Master's of Divinity.
While an undergraduate at Seattle University, Lemelson met Jesuit Fr. Robert Spitzer, SJ, a prominent Jesuit philosopher and former president of Gonzaga University. Lemelson said of the encounter that, at the age of 18, he "felt an overwhelming call to serve God as a priest." He told Catholic News Service that, as a young man, he "fostered a vision that Catholics and Orthodox Christians would soon be reunited."
Early business career
In 1994, while an undergraduate student at Seattle University, Lemelson launched a retail photography business. Later, in 1999, as a theology student at Hellenic College Holy Cross Greek Orthodox School of Theology in Massachusetts, Lemelson founded Amvona, a retail website derived from the Greek world "pulpit," from his dorm room. The company grew quickly, generating around $40 million in annual revenue and becoming one of the top 10 most visited online photo retail websites in the world.
In 2005, based in part on proprietary software the company developed, the site began a transition to a hybrid platform of social networking and ecommerce content. By 2007, Lemelson developed technology to link media creation to relevant products using exif data and aggregating shared images of the site’s users as a prototype first known as “Amvona Trails” and later rebranded as the independent website Flekt.
During its existence, Amvona sold more than a million photo accessories to 300,000 customers and registered several patents, including proprietary software to connect its customers through user profiles, product reviews, exif data and online tracking software. By 2012, such technology was used heavily by online retailers and by Facebook to track user activities.
Lemelson later added a news and securities analysis content outlet for the site focused on issues of faith, technology, economics and investing.
Religious leadership and philanthropy
Lemelson was ordained as a Greek Orthodox Deacon on July 23, 2011 and, the following day, as a priest by Metropolitan Elpidophoros the Abbot of the Theological School at Halki. He was granted the ecclesiastical name Emmanuel and assigned to the Albanian Orthodox Diocese of America, a jurisdiction of the Ecumenical Patriarchate in the United States. The same year just before his ordination, Lemelson says, he almost stopped work in security analysis, "but continued with the encouragement and blessing of the bishop. In June 2013, he was assigned to the Holy Metropolis of Switzerland, a jurisdiction of the Ecumenical Patriarchate.
In December 2012, with the blessing of Bartholomew I of Constantinople, Lemelson founded The Lantern Foundation, a non-profit foundation focused on supporting religious, charitable and educational causes with a special focus on those associated with the Ecumenical Patriarchate. Since its inception, he has served as president of the foundation. Lemelson’s theological work has centered on canonical issues in apostolic mission and ethics in relationship to commerce, finance and social justice.
In November 2014, Lemelson was named a member of the Orthodox Church's delegation for a two day meeting between Ecumenical Patriarchate Bartholomew I and Pope Francis in Constantinople where he participated in the Divine Liturgy, which included the two religious leaders. He advocates closer relations between the Orthodox and Catholic Churches and for a resolution of the differences that first arose between the two churches in the East–West Schism. Lemelson has said the closening of relations between the Orthodox and Roman Catholic churches is happening at a critical time. “When someone is beheaded by ISIS, they don’t ask, 'Are you Catholic or Orthodox?'"
On November 26, 2014, he told The Washington Post that "Christians are facing unprecedented persecution in our modern era."
On September 30, 2015, Lemelson joined U.S. presidential candidate Donald Trump at a New Hampshire campaign rally for Trump at which Trump asked for and received Lemelson's blessing. Lemelson, who also offered the invocation, spoke at the rally, condemning the abortion practices of Planned Parenthood.
In an October 26, 2015 Wall Street Journal documentary about Lemelson, he advocated a philosophy of investment based on Christian ethics, saying: "If we take scripture as a guide, particularly Matthew 25:14-30, we hear the parable of the talents, and in that parable it’s very clear The Lord blesses exceedingly those who take the talents they're given and multiply them, and for those who would not, even what they have will be taken away, so I think it comes down to our view of how we see capital, how we see our talents, if we see them as something that is our own, the result of our own distinct sacrifices and work, we’ll have a very different approach to how we handle it then if we see it as something that we’ve been entrusted with, that we’re meant to be stewards over. God gives us talents so we can use them, and the purpose of those talents is to glorify The Lord.”
Commentary and social activism
In 2010, Lemelson began to write and publish extensively on investment-related topics, including security analysis, Christian investment philosophy and ethics. Lemelson was a national critic of what he considered fraudulent practices in the securitization of mortgage-backed securities and a proponent of long-term investments in U.S. value stocks. His writings on mortgage-backed securities were cited widely in relation to the landmark cases U.S. Bank National Association v. Antonio Ibanez and Francis J. Bevilacqua v. Pablo Rodriguez, in which the Massachusetts Supreme Judicial Court held that financial institutions that did not hold both mortgages and the notes had no legal standing to pursue foreclosure proceedings against residents of these properties.
His writings and commentary have advocated long-term holdings in U.S. equities and have been critical of the securitization of residential mortgages, which some economists now argue was a significant contributing factor to the 2007-09 U.S. housing correction and the ensuing U.S. recession. His writing on these issues has been cited by Anonymous, Occupy Wall Street, the Massachusetts Registry of Deeds and by attorneys and litigants involved in mortgage securitization litigation.
In August 2014, the financial media outlet Hedge Fund Alert reported that Lemelson reached agreement with U.S. Bank after challenging the right of the bank's securitization trust to collect the principal and interest on a mortgage he took out in 2006. As part of the settlement, Lemelson was awarded relief of $1.2 million in principal, interest and fees.
Lemelson's investment activism and commentary have influenced the stock prices of several equities, including Geospace Technologies, Kulicke & Soffa Industries, Ligand Pharmaceuticals, World Wrestling Entertainment and others.
Lemelson has appeared frequently as a guest on the "Pre-Market Prep" radio show of Benzinga and on CBS News, Fox News and Fox Business Network.
In a November 5, 2015 interview with Fox Business Network, Lemelson criticized the Federal Reserve for keeping interest rates artificially low, saying: "We’ve been in uncommon monetary policy for about ten years. This has led to tremendous income inequality in the world. The top 85 people in the world control the same wealth as the bottom 50 percent; that’s 3.5 billion people. When you have interest rates that are that low, and cheap money, you’re going to inflate asset prices, and that’s the conduit of wealth for the rich. But for the rest of the world, one in nine people don’t have enough to eat, and one in seven live off about a $1.25 per day, so a large part of that income is going to basic necessities like food. As leaders in the world economically in the U.S., we have to be very cognizant of the impact of low interest rates and quantitative easing."
Investment management and activism
The Amvona Fund
Main article: Lemelson Capital ManagementIn September 2012, Lemelson founded Lemelson Capital Management, LLC, the sole sponsor and general partner of The Amvona Fund, L.P., a hedge fund that focuses on deep value and special situations. Since its inception, Lemelson has served as the fund's chief investment officer. The fund has been named three times by Barron's as one of the world's top performing hedge funds. In May 2013, Lemelson Capital Management was ranked by Morningstar in the top one percent of its peer group in its "U.S. Long/Short Equity" category. In 2014, the fund was named by Preqin as one of the world's top performing event-driven hedge funds. From its September 2012 inception through May 2014, the fund has returned a compounded annual gain of 85.15 percent and an overall gain of 193.65 percent.
Lemelson marked The Amvona Fund's second anniversary in September 2014, reporting overall gross and net gains since its September 2012 launch of 257 percent and 160 percent, respectively.
Investor activism
Lemelson's analysis of equities has moved share prices in several publicly traded companies. In an October 27, 2015 profile of Lemelson, The Wall Street Journal claimed Lemelson said he had the ability to "crash" stocks, quoting him as saying "My whole life I always knew things before they happened. I guess it's just a gift from God."
WWE
On March 17, 2014 and again on April 8, 2014, Lemelson authored and published analysis that World Wrestling Entertainment (WWE) was substantially overvalued and should be shorted. His analysis was credited by USA Today, The Street, Seeking Alpha and other media outlets with an $800 million drop in the market capitalization of the stock between March 18 and April 20, 2014.
On May 16, 2014, following a $1.4 billion (63 percent) loss in WWE's market capitalization since Lemelson Capital Management's initial March 17, 2014 short call, Lemelson announced that it had reversed its short position and was now long WWE stock. Simultaneously, Lemelson called for the replacement of WWE's executive management team or a sale of the company. This followed what Lemelson Capital Management said was "a period of ongoing losses, execution failures and material misstatements." Several hours after Lemelson's announcement, former Louisiana Attorney General Charles Foti announced that his law firm was beginning an investigation into whether WWE had violated state or federal securities law. Following Lemelson's May 16, 2014 call for changes at WWE, the company announced that it was cutting its staff by seven percent and its stock price appreciated from its May 16, 2014 closing price of $11.27 to $16.40 on February 13, 2015. On March 30, 2015, USA Today reported that Lemelson, in February 2015, had sold his stake in WWE at $16.50.
Kulicke & Soffa Industries
On April 22, 2014, Lemelson's announcement that he was building a stake in the stock of semiconductor and LED equipment maker Kulicke & Soffa Industries and urging the company to authorize a share repurchase plan sent shares of the stock soaring ten percent. Following the call, USA Today reported:
Kulicke & Soffa Industries jumped nearly 10% Tuesday after Lemelson Capital Management announced it was building a stake in the semiconductor and LED equipment maker, saying the company is "absurdly" undervalued... Lemelson made news earlier this month when the investment firm said pro wrestling firm World Wrestling Entertainment was way overvalued, sending the shares down more than 35%.
Four months later, on August 27, 2014, Kulicke & Soffa heeded Lemelson's share repurchase recommendation, announcing that its Board of Directors had authorized a share purchase of up to $100 million.
Ligand Pharmaceuticals
On June 16, 2014, Lemelson released a 25-page research report on Ligand Pharmaceuticals, a publicly traded pharmaceutical company. The report concluded that severe competitive threats to Ligand’s key royalty programs, going concern risks and other challenges were so significant that the stock had no intrinsic value. Over the ensuing six trading days, the stock dropped 16 percent on Lemelson’s criticisms. Three weeks later, on July 3, 2014, Lemelson announced that he had further increased his short position in Ligand and released an appended 12-page research report questioning the commercial viability of Ligand's products and reaffirming his position that downside risk for Ligand "at 100%." On August 7, 2014, the financial media outlet Benzinga reported, "Shares have sold off more than 25 percent since Lemelson Capital published its bearish thesis on the stock in mid-June." On November 18, 2014, Yahoo Finance reported that Lemelson had covered his short position at an approximately 40 percent return.
Geospace Technologies
On October 20, 2014, the financial media outlet Seeking Alpha reported that Lemelson Capital had taken a two percent stake in Geospace Technologies Corporation, a NASDAQ-traded company that develops products for seismic data acquisition in the oil and gas industry, sending the company's stock up 4.2 percent, citing Lemelson's earlier involvement in Kulicke & Soffa Industries' share repurchase program.
Lumber Liquidators
On March 3, 2015, Lemelson criticized allegations leveled by hedge fund manager Whitney Tilson on 60 Minutes against Lumber Liquidators, a U.S.-based hardwood flooring company, in which Tilson alleged that the company's products deliberately contained formaldehyde, violating health and safety standards. Lemelson pointed out errors in Tilson's 60 Minutes allegations, concluding that Lumber Liquidators senior management “was not the source of the directive to use the toxic substance.”
Lemelson’s criticism of the allegations was later validated on December 14, 2015 when Tilson reversed his position, writing that “senior management of Lumber Liquidators wasn’t aware that the company was selling Chinese-made laminate that had high levels of formaldehyde.” The stock jumped 20 percent immediately following Tilson's admission.
Skechers
On September 25, 2015, the financial media outlet Benzinga reported that Lemelson was short Skechers, an NYSE-traded footwear company, at an average (adjusted for a 3:1 stock split) cost of $132," calling it "radically overpriced." Lemelson said that he would continue to short the stock, which he said was vulnerable to a "precipitous fall." Twenty seven days later, on October 22, 2015, shares of the company plunged more than 30 percent in one day following disappointing earnings.
Personal life
Lemelson is married to Theodora Anjeza Lemelson with whom he has four children. He resides in both Massachusetts and Lugano, Switzerland and speaks three languages (English, German and Greek).
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Further reading
- "Rev. Fr. Emmanuel Lemelson," The MetroWest Daily News, June 16, 2014.
- "Fund Manager in focus: Emmanuel Lemelson," by Filipe R. Costa, Master Investor, June 8, 2015.
External links
- Emmanuel Lemelson on Twitter
- Amvona
- Lemelson Capital Management
- The Lantern Foundation
- Emmanuel Lemelson articles at Seeking Alpha
- Emmanuel Lemelson columns at Amvona.com
- Emmanuel Lemelson news at Benzinga.com
- 1976 births
- Living people
- Seattle University alumni
- Hellenic College and Holy Cross Greek Orthodox School of Theology alumni
- 21st-century American businesspeople
- American chief executives
- American finance and investment writers
- American financial analysts
- American hedge fund managers
- American Orthodox priests
- Businesspeople from Massachusetts
- Greek Orthodox Christians from the United States
- Eastern Orthodox theologians
- People from Phoenix, Arizona
- Shareholder-rights activists
- Stock and commodity market managers
- Writers from Massachusetts
- 21st-century Eastern Orthodox priests