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Stock picks from top hedge fund managers

If investors had followed the advice made by top hedge fund managers at last year's Value Investing Congress, they would have would have seen big returns. This year's conference will be held Oct. 1-2.

David Einhorn, Greenlight Capital

Green Mountain Coffee Roasters
Click Green Mountain Coffee Roasters for more data.
  • 2011 stock call: Short Green Mountain Coffee Roasters
  • Immediate reaction: Shares tumbled 10.4%
  • Return since the call: -74%

Einhorn is the king of the shorts. The manager of $10 billion hedge fund Greenlight Capital famously, or perhaps infamously, predicted the downfall of Lehman Brothers during a public presentation in May 2008.

His tear-down of Green Mountain Coffee Roasters (GMCR) may not have been as epic, but Einhorn's insights have crushed shares of what was one of the best-performing stocks of 2011 before his presentation.

Many of Einhorn's predictions have come true: Green Mountain's lock on the K-cup market has been challenged, and in turn, its earnings have taken a hit.

Einhorn can even send a company's stock reeling simply by asking questions during a conference call. Since Einhorn popped up on Herbalife's (HLF) analyst call in May and questioned the company's accounting metrics, shares of the nutritional supplement manufacturer have taken a drubbing. Herbalife's stock has fallen 35% since the call.

Source: CNNMoney
  @maureenmfarrell - Last updated September 30 2012 06:53 PM ET

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