Einhorn Shorts Heavy Industry, Betting on Commodities Slump
- Commodities slump may exert long period of headwinds
- Hedge fund manager affirms confidence in Apple, GM shares
David Einhorn, president and co-founder of Greenlight Capital Inc., pauses during a Bloomberg Television interview in New York. Photographer: Scott Eells/Bloomberg
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Hedge fund manager David Einhorn said he’s betting against stocks of heavy-equipment manufacturers because he expects a long-term slump in commodity prices.
“Bulls are assuming the current commodity environment is an ordinary cyclical downturn,” Einhorn said Tuesday on a conference call discussing results for Greenlight Capital Re Ltd., the Cayman Islands-based reinsurer where he is chairman. “We believe it is the end of a commodity supercycle, and this will exert a long period of earnings headwinds for these companies.” He didn’t specify which manufacturers he’s shorting.