Greenlight's David Einhorn is betting big on inflation. Here are his latest moves

David Einhorn
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David Einhorn's Greenlight Capital has been positioning his portfolio in anticipation of rising inflation. The hedge fund has recently added to a number of large equity stakes poised to benefit from higher prices in different corners of the economy. 

The inflation bet is based on the Federal Reserve's commitment to keep interest rates near zero, which would mean letting inflation rise at least to their 2% target, Greenlight said in an investor letter obtained by CNBC.

Einhorn believes rising inflation could also take the air out of some of the more speculative investing taking place right now.

"We believe the market groupthink that profitless growth stocks that trade at astronomical valuations, in part on the basis that interest rates are low, will be disrupted by rising inflation expectations even in the absence of a corresponding increase in Treasury yields," the firm said in the letter. 

As the economy embarked on its road to recovery, consumer prices have started to bounce back a bit after dropping drastically during the pandemic. In the 12 months through June, the consumer price index climbed 0.6% after gaining 0.1% in May. The market's inflation expectations have also edged higher in the wake of global fiscal stimulus.

Here's how the hedge fund is playing it.