Will David Einhorn Short Edvard Munch’s ‘Scream’?

David Einhorn could be the best short seller on the planet. He may even be better than the legendary Jim Chanos. Herbalife was trading above $70 per share just before Einhorn asked a simple question during the company’s conference call. That was enough to push the shares down significantly. Right now the stock is trading below $47, losing a third of its value in a short few days.


Last fall Einhorn presented his short thesis on Green Mountain Coffee Roasters (GMCR). The stock plunged to $40 in the following weeks and then recovered to $70 by the end of February. However, that wasn’t the end of the story. Right now, the stock is trading at $25, losing half of its value today after a disappointing earnings report and outlook. Green Mountain is becoming a value stock. Whitney Tilson could initiate a long position any second.

We are wondering whether David Einhorn would short Edvard Munch’s ‘Scream’ which was sold for a record breaking $120 million. Clearly, the Art Market is in a bubble. Unfortunately there isn’t an easy way of trading in this market. Maybe John Paulson could ask Goldman Sachs to bundle some artwork and create a tradeable financial instrument out of it.

Anyway, Ira Sohn Conference is a few weeks away and we will find out what David Einhorn is up to.