| NEW YORK
NEW YORK Nov 14 Patrick McCormack, the manager
of hedge fund Tiger Consumer Management, decided to bet against
rival David Einhorn in the third quarter.
McCormack's $2 billion fund jumped into two stocks that
Einhorn, founder of $8 billion Greenlight Capital Management and
one of a handful of savvy traders who can move markets with his
"short" calls, has said publicly he is shorting, or betting
Quarterly regulatory filings for Tiger Consumer show
McCormack acquired a 280,000 share stake in Chipotle Mexican
Grill Inc and increased his fund's stake in Green
Mountain Coffee Roasters Inc by 500,000 shares to 1.5
Einhorn, one of the $2 trillion hedge fund industry's most
closely-watched managers, has given presentations questioning
the prospects for both Chipotle and Green Mountain Coffee.
Tiger Consumer disclosed its recent moves in a so-called
13-F filing, which all large money managers are required to file
with the U.S. Securities and Exchange Commission after the close
of each quarter.
The filings give a glimpse into the thinking and strategies
of managers and, in this case, indicates that, while Einhorn is
bearish on those two stocks, McCormack is more bullish.
Other filings reveal that Chase Coleman and his $6 billion
Tiger Global Management made a big bet o n Y ahoo Inc by
opening a 25 million share position in the Internet company, and
Philippe Laffont's $3.5 billion Coatue Management acquired 1.4
million shares in social networking company Facebook Inc.
Overall, the third quarter was a good one for U.S. stocks
and hedge funds with the benchmark S&P 500 rising 5.76 percent
and the average hedge fund gaining 3 percent. By contrast,
stocks have retreated mightily in the fourth quarter with the
S&P 500 falling 5 percent as of Nov. 13.
Since 13-F filings are released roughly 45 days after the
end of quarter, it is important to note that what might have
appeared as profitable bets by a manager in the third quarter
might not be so smart right now in light of the recent market
Much of the selling in stocks right now is a response to
concern about whether a newly re-elected President Obama and a
Republican-controlled House of Representatives will be able to
reach an agreement to deal with expiring income tax cuts and
large pre-planned spending cuts.
For more on how big money managers traded in the third
quarter, here is a breakdown by sectors and high-profile stocks:
Yale University's $19.3 billion endowment acquired 133,000
shares of children's clothing company Carter's Inc.
Tiger Consumer added about 500,000 shares to its stake in
Monster Beverage Corp, whose stock dropped 24 percent
in the third quarter.
Farallon Capital Management nearly doubled it position in
credit card company Visa Inc to 1.17 million shares.
Alyeska Capital raised it stake in Citigroup Inc to
943,000 shares from 181,400 shares.
Brigade Capital Management roughly doubled its stake in
Beazer Homes USA Inc to 2.5 million shares, but
eliminated its 500,000 share position in DR Horton.
Tiger Global raised its stake in Facebook to 11.7 million
shares from 2 million shares at the end of the second quarter.