(Updated - October 21, 2015 5:40 PM EDT)

David Einhorn's Greenlight disclosed it has a new long position in Michael Kors (NYSE: KORS).

Einhorn noted shares fell as a result of a distribution center shutdown that led to a temporary halt in e-commerce, and the winter product line was repetitive.

"The market went from expecting ongoing earnings beats to worrying the company is a fad that has run its course," he said.

Both issue are now resolved and the fall line appears much improved, according to Einhorn.

"We believe KORS has multiple avenues of continued growth, including its international business and footwear," the hedge fund manager commented. "We established our position at an average price of $45.18, less than 9.5x March 2016 fiscal year earnings estimates net of the $4 per share in cash."