Chipotle is proving too hot for hedge-fund manager David Einhorn.
Einhorn’s Greenlight Capital eked out only a 1.2 percent gain for October, according to a source. That compares to a 4.5 percent gain for the S&P 500.
His big short on Chipotle Mexican Grill appears to be largely responsible. The fast-food chain gained 23 percent for the month, erasing most of the gains Einhorn made elsewhere.
The noted shortseller earlier told investors it had been difficult to make money betting against stocks this year with the markets going gangbusters.
“In many cases we’ve lost money,” he said in his third-quarter letter, pointing to Chipotle as a case in point.
“Muy loco” is how he described the stock’s buoyance despite the burrito joint’s lagging sales and earnings.
Einhorn’s long positions in Apple, General Motors, Marvell Technology, Vodafone and gold all rose in October, with Apple up about 10 percent.
Even his other well-known short on Green Mountain Coffee Roasters, which fell 16 percent, profited his position.
Greenlight Capital is up 13.7 percent for the year, compared with a 23 percent gain for the S&P 500.