David Einhorn’s Q3 letter to shareholders is out. We already know performance numbers as we earlier reported Greenlight Capital Re, Ltd. (NASDAQ:GLRE)’s q3 returns here. However, we have some new info on short positions as well as long positions in foreign companies.
David Einhorn’s discussion on CMG and GMCR
David Einhorn devotes most of the letter to his discussion of Chipotle Mexican Grill, Inc. (NYSE:CMG) and Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) and why he thinks that both companies are good shorts. Einhorn also discusses his profitable Apple Inc. (NASDAQ:AAPL) position, which we noted gained around 20 percent in the quarter.
He mentions in the hedge fund letter that he has added to the GMCR short as the price of the stock rose.
The evening before the invitation-only event on September 10, the New York Times reported that there was a large discrepancy between the number of K-Cups the company says it has sold and the numbers implied using data from the tracking firm IRI.
For years there have been questions about misconduct within Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s distribution and accounting departments. This new information raised the possibility that this activity is continuing, with GMCR potentially booking hundreds of millions of dollars of non-existent K-Cup sales.We watched the company’s live investor day webcast, waiting to see how Mr. Kelley would field any inquiries on the matter. Despite a lengthy Q&A session, the questions never came. We later heard that Mr. Kelley was asked about it during a break and essentially told investors that for the New York Times to be right, then you’d have to believe that he was in on it.
Einhorn also added Osram Licht AG (ETR:OSR) (OTCMKTS:OSAGF) to the portfolio.
Below the entire letter from Einhorn can be found.