Photo: Linette Lopez for Business Insider
When billionaire hedge fund hot-shot David Einhorn, the founder of Greenlight Capital, talks about a stock it’s likely to move.”Apparently now I’m a verb,” Einhorn jokingly told the audience at the Value Investing Congress yesterday showing a slide of a news story with the word “Einhorned” in the headline.
The audience broke out in laughter at this.
But it’s often true.
Stocks tend to get “Einhorned” meaning they get crushed when Einhorn talks about them.
For example, when he didn’t offer an Herbalife thesis yesterday the stock moved higher. However, earlier this year, when he asked a few questions on a conference call for the company, Herbalife’s stock got pummelled.
While at the Value Investing Congress, Einhorn revisited his Green Mountain Coffee Roasters short thesis. During the presentation, the shares dropped and trading volume spiked. However, the stock later reversed those losses to close higher.
But ever since Einhorn’s Green Mountain short thesis presentation last year, shares have fallen more than 70%, according to data from Yahoo! Finance.
Yesterday Einhorn also recommended shorting Chipotle Mexican Grill.
Chipotle’s stock tanked during his talk and it fell $13.17, or 4.2%, to close at $302.96 yesterday. Today the stock is still trading lower.
In his 120 slides, he did offer investors a lesson, “I will never blindly follow anyone into a stock without doing my own work.”