New York (HedgeCo.net) – Last week we reported that David Einhorn and his hedge fund Greenlight Capital were headed for their second losing year in 19 years since inception and that 2015 could end up being the worst year yet for the fund. As if this wasn’t a dreary enough backdrop, things may have gotten worse yesterday when one of Mr. Einhorn’s touted short positions announced that it was being taken private.

Kuerig Green Mountain Coffee (Nasdaq: GMCR) announced that it is being acquired by JAB Group for $92 a share. The stock closed at $51.70 on Friday, but was trading above $89 yesterday. Einhorn disclosed that he had entered a short position during the third quarter and wrote in the company’s third quarter investor letter, “The second time has been a charm as our original thesis is playing out. So far, our third biggest winner this year.” That quote makes reference to a previous short position on the company that didn’t work out for Greenlight.

An article from Business Insider stated that the price Einhorn shorted the stock at was $102.08 which would mean the trade is still profitable, but not nearly as profitable as it was last week. What isn’t known at this time is whether Greenlight was still in the trade. If it was and the profits got cut in an instance, the return for the company’s main fund may have just gotten a lot worse and could potentially propel the fund to its worst year ever, topping the 23% loss the fund saw in 2008.

Rick Pendergraft
Research Analyst
HedgeCoVest