Famed short seller David Einhorn must have a bitter taste in his mouth over his two-and-a-half-year battle against Green Mountain Coffee Roasters.
Last month, Einhorn’s Greenlight Capital, his flagship fund, barely broke even after the coffee company’s stock shot up by more than 35 percent.
The stock skyrocketed after Coca-Cola said it would take a 10 percent stake in the coffee machine maker Keurig on Feb. 5.
Greenlight gained a mere 0.6 percent in February, while the S&P 500 index rose 4.3 percent. The fund is down 1.3 percent, vs. a 0.6 percent gain for the S&P 500 during the first two months of 2014.
The $10 billion fund has a huge short book — worth about $7 billion — and Green Mountain is its largest position. Green Mountain was also one of Einhorn’s biggest losers last year, as shares gained 83 percent in 2013.
It’s unclear how much of the losses this year have come from Green Mountain, as other shorts like Chipotle have been a losing stake.
But one source close to Einhorn said he could have lost close to $100 million shorting the coffee roaster this year.
Since the hedgie announced his Green Mountain short to much fanfare Oct. 19, 2011, shares have risen about 33 percent. Despite his losses in recent years, last fall the hedgie said he was adding to the position.
Einhorn isn’t believed to have covered this year, although he may have hedged the position, sources said.