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Bailey McCann, Opalesque New York:

David Einhorn's Greenlight Capital is adding shorts according to his latest investor letter released today and obtained by Opalesque. The hedge fund's portfolio had an "uneventful and unprofitable" quarter according to the letter, which could be prompting additions to the firm's short book.

Micron Technology (MU) was called out as the loss leader for the portfolio, with share prices declining by 23%. However, Einhorn stands by his thesis that the DRAM market will start to act more rationally in the face of slower personal computer (PC) sales.

Greenlight is currently betting against AthenaHealth, and appears to be looking at a few other candidates, as opportunities for long positions are harder to find. "Short candidates are easy to find, but as noted above, the opportunity set on the long side is quite constrained," the letter said.

"Most of the investment theses we have reviewed over the past several months can at best be described as late-cycle opportunities, with valuations that often ignore historical economic sensitivity. The operating (and in some cases activist) execution needed to achieve target results has to be rated at Triple Lindy difficulty level."

The letter also noted a renewed interest in GM. The firm sold its stake in the company in 2014 after disappointing earnings, but says the value proposition has changed. Einhorn predicts a share buy back while interest rates are still low in order to ......................

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