David Einhorn Still Short Iron Ore

by admin on January 23, 2013

Iron Ore prices have ramped over 30% in the last few months. Nonetheless, famed hedge fund manager David Einhorn is still short.

According to his latest letter, Einhorn is short “several” stocks in the iron ore sector as he thinks that supply now exceeds demand. Going forward, he expects supply to increase at an annual rate of 15%. On the demand side of the equation, Einhorn does not see demand growing at any more than a few percent per year.

Einhorn stated that he is “willing to be patient” with this short sale that has surely been painful.

Other hedge fund managers including Jim Chanos have also taken bearish positions against iron ore.

 

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