David Einhorn's Short Portfolio Is Killing It (GMCR)

David Einhorn's Greenlight Capital returned (3.2%) in the second quarter, net of fees and expenses, but is still up 3.4% year-to-date. Most of their gains in the second quarter came from the short portfolio.

The firm's biggest short winner was Green Mountain Coffee Roasters Inc. (Nasdaq: GMCR), down 53 percent in the quarter... and he is still negative on the name. Einhorn notes that investors are beginning to consider the ramifications of the coming K-cup patent expiration and said several larger retailers have plans to take away shelf space to make room for private label K-cups. "Recent store checks show that the price of K-cups is already falling - almost as fast at GMCR's stock price," Einhorn said.

Einhorn also said two other undisclosed short positions made material contributions during the quarter.

Traders ponder if Herbalife Ltd. (NYSE: HLF) is one of those shorts, although Einhorn has been mum about the topic.

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