In Greenlight Capital’s latest investor letter (via marketfolly), David Einhorn let spoke pretty briefly about recent events and the company’s portfolio activity.
Looking beyond the numbers, the best part of the letters is how he writes about the financial community’s reaction to Greenlight’s presentation on Green Mountain Coffee. Einhorn said it was mostly well-received, and that people mostly took the fundamentals of the fund’s argument into consideration.
And then there was this tidbit:
After our presentation, one of the largest GMCR shareholders sent us a Keurig coffee brewer and 10 K-cup boxes of coffee straight from the warehouse. Not only did we appreciate the gesture, it was nice of them to assist in our field research, as the majority of the K-cups were too close to expiration to be sold through normal retail channels.
Priceless. A gift that was presumably intended to convince Einhorn that K-cups were convenient and great actually gave him another reason to short the company. One question though: Who checked the expiration date on the coffee cups? An office manager might deserve a great Christmas bonus this year.
That aside, we should note that the fund returned “(1.2)%, (0.6)% and (0.8)% net of fees and expenses, respectively, in the third quarter of 2011, bringing the respective year to date net returns to (6.2)%, (5.6)% and (6.1)%.”
Greenlight also picked up positions in General Motors, CBS Corp, and Marvel Technology (a hardware company). You can read the entire letter yourself below.