By Patrick Clark 10/02/12 2:07pm

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einhorn

Chipotle Shares Head South on David Einhorn’s Short Bet

Chipotle shares fell as much as 7.2 percent after Greenlight Capital founder David Einhorn said he was betting against the company today at the Value Investing Conference.

That the stock fell on Mr. Einhorn’s pronouncement is not surprising—as The Wall Street Journal reported earlier this month, markets typically respond to Mr. Einhorn’s public comments on companies as copycats pile into his bets. Indeed, the Einhorn Effect is greater when the hedge fund manager takes a negative view of a company, with a median same-day decline of 4.9 percent on the nine shorts The Journal included in its study. Read More