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.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Walmart expected to beat Q2 estimates as tariff refunds lift margins
• UGI Corp. (UGI) halted on volatility, up 6%
• Engine Capital urges H.B. Fuller to explore BAS and full sale