market folly

David Einhorn's hedge fund Greenlight Capital recently filed amended 13D's and Form 4's with the SEC regarding two of their positions. Firstly, due to activity on May 1st, 2010, Greenlight shows a 65.2% ownership stake in Einstein Noah Restaurant Group (BAGL) with 10,733,469 shares. There has been no adjustment to their position size since December 31st, 2009 when we detailed Greenlight's portfolio. So while this news is not an exciting 'buy' or 'sell,' it is still informational as they continue to 'hold' BAGL shares. The filings were mainly made to shuffle ownership interests between Einhorn's various investment vehicles. The vast majority of their Einstein Noah position is in their Greenlight Qualified Fund.

Secondly, we see that Einhorn's hedge fund completed a similar portfolio shuffle with their Biofuel Energy Corp (BIOF) stake. Due to the disclosures, Greenlight shows a 39.8% ownership stake in BIOF with 11,853,500 shares. This is actually an increase in their position as they previously owned 7,542,104 shares when we previously saw Einhorn's holdings. This marks a 57.16% increase in their position size over the past four months. Keep in mind that they own both Class A and Class B stock.

This latest portfolio activity comes after we saw Einhorn dump shares of Boston Scientific (BSX) in Greenlight's latest investor letter. Additionally, we've previously examined Einhorn's thesis on Vodafone (VOD). To get a glimpse at Greenlight's research process, check out David Einhorn's book: Fooling Some of the People All of the Time.

Taken from Google Finance, Einstein Noah Restaurant Group is "operates under the Einstein Bros. Bagels (Einstein Bros.), Noah’s New York Bagels (Noah’s) and Manhattan Bagel Company (Manhattan Bagel) brands. The Company operates in three business segments: the Company-owned restaurants segment, the manufacturing and commissary segment, and the franchise and license segment."

Biofuel Energy Corp is "produces and sells ethanol and its co-products (primarily distillers grain), through its two ethanol production facilities located in Wood River, Nebraska and Fairmont, Minnesota."

For the most recent investment update from David Einhorn's team, make sure to check out Greenlight's investor letter.