(Bloomberg) -- David Einhorn’s Greenlight Capital returned 11.9% last year and has added a new large long position in Global Payments Inc. 

The firm’s funds advanced 18.6% in the fourth quarter with almost all of the gains coming from long positions, according to a letter to investors. Shorts and macro positions were also profitable.

“The macro environment has continued to be favorable for us, but it now feels like the tailwinds are picking up speed,” the letter said.

Among other comments:

  • Believes that inflation will eventually cause a recession, regardless of what the Federal Reserve does and has started to position for that to happen
  • Recently added a long position to Global Payments at an average price of about $123 per share
    • Says the company will benefit from the consumer shift toward electronic payments and rising inflation
    • “We rarely find such a high-quality business at a valuation that we find attractive”
    • Adds that the market is “overstating the threat” that upstart fintech players pose
    • NOTE: Global Payments shares rose as much as 3.6% on Wednesday
  • Also disclosed stakes in Capri Holdings Ltd, Galapagos, ODP Corp. and Rheinmetall AG
    • Exited positions in AerCap, Countryside Properties and FuboTV
  • Said head trader Bruce Gutkin will retire at the end of the month and will be replaced by John Charecky
  • Greenlight declined to comment on the letter

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