NEW YORK ( TheStreet) - Jeff Gundlach, head of investment manager Doubleline Capital is poised to join David Einhorn of Greenlight Capital in shorting the shares of Chipotle Mexican Grill (CMG), according to a Thursday presentation.
At a luncheon at the New York Yacht Club on Thursday, Gundlach indicated he will present Chipotle as a short trade at the upcoming Ira Sohn Conference in May.
"Gourmet Burrito is an oxymoron," Gundlach said on Thursday referring to Chipotle, according to TheStreet contributor Joshua Brown, who is attending the presentation. Gundlach is saving a full presentation on why he is shorting Chipotle shares for the upcoming Ira Sohn conference, scheduled for early May, Brown writes on Twitter.
The conference is among the most popular for value investors and short sellers to present new investment ideas.Chipotle shares fell over 2% to $335.85 in Thursday afternoon trading, falling about 1% after Brown disseminated Gundlach's comments on Twitter. Last year, David Einhorn surprised investors at the Ira Sohn Conference by detailing a short position in Martin Marietta (MLM) shares. Many had speculated the hedge fund manager would present on Herbalife (HLF), the now embattled supplements seller that is working to ward off a $1 billion short position taken by Bill Ackman of Pershing Square Capital Management. In October, Einhorn detailed why he is shorting Chipotle shares at the Value Investing Congress, another prominent investor conference, on the belief it is a run-on-the-mill fast food chain with little brand premium the eyes of consumers. Einhorn expects margins and growth at the company will fall amid competition from price competitors such as Taco Bell, owned by Yum! Brands (YUM) and Qdoba Mexican Grill. "In presenting our short thesis on
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