Einhorn Unfazed By Market Rally

Nov 4 2013 | 11:47am ET

Greenlight Capital has boosted its short bets even as stocks continue to soar.

The New York-based hedge fund's founder, David Einhorn, said the firm's short book had grown against its long in a conference call for its reinsurance arm, Greenlight Capital Re. Einhorn added to his shorts in spite of the fact that they've cost him this year.

"As the market continued its relentless climb, we've become more conservatively positioned," he said.

Greenlight is up about 12% this year, thanks to its long bets on Apple  Inc. and other companies. Its short book has cut into that return, he admitted.

"The losses in the short book were broad-based, and we continue to be short most of the companies that contributed to the loss," Einhorn said. "These include a variety of companies which tend to have conventional valuations, rather than speculative-story stocks that have caused excessive pain for other short sellers."

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