Hedge Funds Lose Big on Green Mountain Coffee Roasters $GMCR

Green Mountain Coffee Roasters (GMCR) shares fell almost 37% in trading on Thursday, from $67.02 at close Wednesday to $42.25 a share at 11:39am EST. The sharp drop came after GMCR posted an EPS of 47 cents, one cent below expectations. Its revenues rose 91% to $712 million, missing Wall Street’s expectations by about 6%, leaving fiscal 2012 revenue guidance just a bit light at $4.24 million to $4.37 billion. It is the company’s first revenue miss in two years. GMCR also noted an increase in debt to $582.6 million from just $354.5 million a year ago.


The loss left some people wondering whether David Einhorn may have called it right at the Value Investing Congress on October 17. In his 110-slide presentation, he chatised GMCR for “accounting discrepancies” and “capital spending [that] is growing much faster than the business.” While Einhorn’s presentation drew attention to these issues, Einhorn himself is the first to say that the same argument could have been made anytime in the last year, writing as much in his quarterly investors’ letter. GMCR has been in a tailspin since.

The following hedge funds lost the most since the close of trading Wednesday, November 9:

1. Coatue Management – Philippe Laffont: Lost -$106.4 million

2. Discovery Capital Management – Rob Citrone: Lost $28.4 million

3. Sac Capital Advisors – Steven Cohen: Lost $27.0 million

4. Alydar Capital – John Murphy: Lost $26.0 million

5. Jat Capital Management – John Thaler: Lost $21.4 million

6. Tiger Consumer Management – Patrick Mccormack: Lost $16.0 million

7. Renaissance Technologies – Jim Simons: Lost $13.6 million

8. Sigma Capital Management – Sac Subsidiary: Lost $12.5 million

9. Driehaus Capital – Richard Driehaus: Lost $8.0 million

10. Fox Point Capital Management – Charles Anderson: Lost $6.2 million

DISCLAIMER: These calculations assume that these hedge funds did not increase or reduce their stock positions in GMCR since the end of June. We did not take into account their option positions.

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