Greenlight Capital's David Einhorn said he's getting concerned about the stock market after a strong rally and has added sizable downside protection to his portfolio. The star manager revealed in a letter to shareholders obtained by CNBC that his hedge fund returned 14.5% in the second quarter, compared with an 8.7% return for the S & P 500. The biggest winner in his portfolio has been homebuilder Green Brick Partners , which saw shares rally 62% last quarter and 117% this year.
A regulatory filing Monday just showed that Michael Burry , known for calling the subprime mortgage crisis, held potential massive bets against the stock market via put options against the SPDR S & P 500 ETF Trust and the Invesco QQQ ETF . Einhorn, 54, believes inflation remains a big risk even though data has suggested easing price pressures. The consumer price index rose 3.2% from a year ago in July, slightly below expectations and coming well off the 40-year highs seen in mid-2022.