Einhorn bets on secular commodity decline

• "Bulls are assuming the current commodity environment is an ordinary cyclical downturn," says David Einhorn, speaking on the Greenlight Re (GLRE -1.8%) earnings call. "We believe it is the end of a commodity supercycle, and this will exert a long period of earnings headwinds for [heavy equipment manufacturers].”
• Burned last year in part from long bets on Micron, SunEdison, and Consol Energy, Einhorn of late has boosted his portfolio's short exposure, and Greenlight's main hedge fund was ahead 1.4% during January.
• As for longs, Einhorn is betting slowly rising wages combined with a "tax cut" from lower energy prices will boost consumer spending, and he's still a bull on Apple, GM, Michael Kors, and Macy's.
• Previously: Greenlight Capital beats by $0.23 (Feb. 22)