David Einhorn Says He Is Short Moody's And McGraw-Hill (MHP, MCO)

Noted value investor David Einhorn told the audience at the Ira Sohn Conference that he is short both Moody's MCO and McGraw-Hill MHP, which owns ratings agency Standard & Poor's. The Ira Sohn Conference is an annual gathering where some of the world's top hedge fund managers reveal their highest conviction investment ideas. Einhorn manages Greenlight Capital, a New York based hedge fund. He told the audience that he thinks the European crisis could cause more problems for the ratings agencies. Einhorn famously revealed his short position in Lehman Brothers at the conference. The investment bank eventually filed for bankruptcy at the height of 2008's financial crisis. In after hours trading, MCO shares have already fallen 6.61% to $19.50 as this news circulates around Wall Street. MHP has fallen 2.43% to $27.31 in the late trading session.