David Einhorn’s Greenlight Capital has been positioning his portfolio in anticipation of rising inflation. CNBC notes that “the hedge fund has recently added to a number of large equity stakes poised to benefit from higher prices in different corners of the economy.” From Greenlight’s recent investor letter,

We believe the market groupthink that profitless growth stocks that trade at astronomical valuations, in part on the basis that interest rates are low, will be disrupted by rising inflation expectations even in the absence of a corresponding increase in Treasury yields,” the firm said in the letter.

Leave a Reply

Your email address will not be published. Required fields are marked *