* Greenlight Re holds Arkema, Lanxess, CIT Group, Vodafone
NEW YORK May 18 Hedge fund manager David
Einhorn said on Tuesday that there is "going to be a lot of
inflation" and that he thinks of gold as a currency.
Speaking at an investor conference for Greenlight Capital
Re Ltd (GLRE.O), where he is chairman of the board, Einhorn
said "large valuation discrepancies" have emerged between
cyclical companies benefiting from the economic recovery and
Einhorn said last year that he was buying gold and betting
that interest rates will rise. He has warned about the
exploding size of the U.S. budget deficit, a reflection of the
massive government bailouts of U.S. corporations.
At the investor conference he said that at Greenlight, "We
tend to think of gold as a currency" and that "I think there's
going to be a lot of inflation."
Greenlight Capital Re said the largest positions in its
investment portfolio were specialty chemical makers Arkema
(AKE.PA) and Lanxess LXGS.DE, commercial lender CIT Group
(CIT.N), Vodaphone Group Plc (VOD.L) and gold.
Einhorn rose to prominence for publicly questioning the
financing behind Lehman Brothers and its accounting before the
investment bank failed in September 2008.
(Reporting by Jennifer Ablan and Emily Chasan, editing by