NEW YORK (Reuters) - David Einhorn's hedge fund Greenlight Capital rose 4.3 percent in the third quarter, bringing the fund's net return for the year to 11.8 percent, according to an investor letter released on Tuesday.
The $8-billion hedge fund also said it added to its short bet against Green Mountain Coffee Roasters GMCR.O Green Mountain shares were down 4.5 percent at $65.82 at the close of trading Tuesday.
While Greenlight's returns are better than the average hedge fund, which gained about 5.6 percent through September, the fund is trailing the broader S&P 500 .SPX stock index, which is up more than 17.9 percent this year. The S&P rose 4.7 percent in the third quarter.
"Virtually every long position in our portfolio" was profitable in the third quarter, Einhorn said, highlighting gains in the shares of Apple (AAPL.O) and Vodafone (VOD.L). Greenlight is one of Apple's top shareholders. Apple's shares rose more than 20 percent over the quarter.
But Einhorn's short bets proved less successful over the quarter.
"Even in conventionally valued stocks where the fundamentals have largely gone our way, it has been hard to make money on shorts," he said. "In many cases we've lost money."
Einhorn said the fund added a position in Germany's Osram Licht AG (OSRn.DE) during the third quarter, while it exited successful long positions in Norwegian insurer Gjensidige Forsikring (GJFS.OL) and Oaktree Capital Group (OAK.N).
Einhorn, one of the most closely watched hedge fund manager's in the $2.25 trillion industry, reiterated his opinion that the Federal Reserve's bond-buying stimulus "is actually thwarting the recovery."
Reporting by Sam Forgione with additional reporting by Katya Wachtel; Editing by Diane Craft and Leslie Gevirtz