David Einhorn’s Greenlight Capital has just released their third quarter letter. The value oriented hedge fund is up 13.2% year to date. David Einhorn comments on a variety of issues. He discusses the economy, and states that he will continue to buy gold if Ben Bernanke continues to print money. He compares the actions of central bankers to ‘binge buying’, on credit cards. David Einhorn labels QEIII as an ‘Amex Debasium Card.’
He notes his long positions, which were the biggest winners this month. The securities include include Apple Inc. (NASDAQ:AAPL), Seagate Technology PLC (NASDAQ:STX), Sprint Nextel Corporation (NYSE:S), and Arkema SA (EPA:AKE) as well as an undisclosed short position.
Talk of inflation has been swirling for some time amid all the stimulus that's been pouring into the market and the soaring debt levels in the U.S. The Federal Reserve has said that any inflation that does occur will be temporary, but one hedge fund macro trader says there are plenty of reasons not to Read More
David Einhorn took the opportunity to again attack Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s accounting methods. Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has declined by approximately 75% since David Einhorn publicly raised the accounting issues related to the company. He notes that it is ‘implausible’ that the accounting committee of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) did an audit within 23 days.
David Einhorn again reiterated his short thesis for Chipotle Mexican Grill, Inc. (NYSE:CMG). He notes that Chipotle Mexican Grill, Inc. (NYSE:CMG) trades at a high multiple and is overvalued. Additionally, Einhorn conducted a survey which shows that a third of Chipotle Mexican Grill, Inc. (NYSE:CMG)’s customers are ages 18-24. This would imply that lower income groups eat at Chipotle Mexican Grill, Inc. (NYSE:CMG).
The full letter is below in PDF format:
David Einhorn Q3
Disclosure: No position in any securities mentioned.