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DoubleLine's Gundlach says Chipotle a 'good short'
April 11, 2013 / 6:56 PM / in 5 years

DoubleLine's Gundlach says Chipotle a 'good short'

April 11 (Reuters) - Jeffrey Gundlach, chief investment officer and chief executive of the $56 billion DoubleLine Capital LP, said on Thursday that his latest investment idea is a “short” bet against the shares of Chipotle Mexican Grill .

“I was going to save this for the upcoming Ira Sohn (conference) ... but I think a good short is Chipotle,” Gundlach said at DoubleLine’s annual luncheon at the Yacht Club in New York on Thursday. “Gourmet burrito is an oxymoron.”

A year ago at the same investor luncheon, Gundlach told an audience that he was shorting the stock of Apple Inc at $610 and correctly predicted that the Apple stock price would fall to $425.

Chipotle shares are down 2.6 percent in the wake of the Gundlach investment call. Gundlach declined to provide any further detail on Chipotle shares.

Late last year, hedge-fund manager David Einhorn said his latest short idea was Chipotle, calling the fast-food chain’s shares overvalued. Einhorn outlined the bearish case for the company, arguing that Chipotle’s business was vulnerable to competition.

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