Highlights from Greenlight’s Q3 Letter (Part 2): Einhorn’s New Picks and Two Stocks He Is Shorting

In General Motors Company (NYSE:GM), Greenlight held some 14.65 million shares as of the end of June, after having initiated a position with 9.47 million shares a quarter earlier. The stock lost around 9% during the third quarter, which offset most of its gains throughout the year and sent the stock down to just 2% in the green year-to-date. The slowdown of the Chinese economy has put some pressure on General Motors Company (NYSE:GM)’s stock, but Einhorn and his team like the company because of its solid financial results and “stable estimates.”

(see Einhorn’s take on GM from its letter for the first quarter)

athenahealth, Inc (NASDAQ:ATHN) is one of the stocks which Greenlight has been shorting for more than a year, first mentioning it during the Ira Sohn conference in May, 2014. However, in the last three months shares of athenahealth have advanced by 11%, rallying after the company’s latest financial report, although the investor considers this appreciation unjustified. During the Robin Hood Conference in October 2014, Einhorn said that he thought the stock could lose 80% of its value, because even though he likes athenahealth’s business, it was overvalued at 100-times earnings. athenahealth, Inc (NASDAQ:ATHN)’s shares have advanced by 16% since Einhorn’s presentation and it currently trades at a whopping 600-times earnings and 88-times forward earnings, which makes the stock even more overvalued.

Finally, Keurig Green Mountain Inc (NASDAQ:GMCR) is another stock that Greenlight is shorting and very successfully so far. It held a short stake back in 2011, and in his letter, Einhorn said that he re-entered the position at $102.08. The stock has slumped by 59% year-to-date and, thus, the short position in Keurig Green Mountain Inc (NASDAQ:GMCR) represented Greenlight’s third-biggest winner so far in 2015, as, according to the investor, its original thesis on the stock has played out.

Disclosure: None