Einhorn Makes Gold His Largest Holding

Fresco passed along this little tidbit reported by StreetInsider.com. David Einhorn’s Greenlight Capital hedge fund issued its 13F for the quarter ended 3/31/09. Fearing inflation, Greenlight boosted its exposure to gold through two ETFs. The fund bought 514,000 shares of SPDR Gold Shares (GLD) to raise its stake to 4.2 million shares. StreetInsider says this is Greenlight’s biggest position and valued at $385 million. The fund maintains its stake of 3.2 million shares in Market Vectors Gold Miners ETF (GDX). For a full report on Greenlight’s stock holdings check out StreetInsider.com.

Inflation has to go up, no? I mean really, it can’t get much lower. Gold is considered a classic hedge against inflation, so if people anticipate inflation rising significantly, gold is a good place to be.

The Wall Street Journal says GLD is seeing the largest money flows for buying on weakness. Today, GLD is down $1.39, or 1.5% to $90.17.

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