Bringing inflation down will be harder than investors think, hedge fund manager David Einhorn said Wednesday. Einhorn, founder and president of Greenlight Capital, told CNBC’s Scott Wapner on Wednesday that “fewer than three” interest rate cuts from the Federal Reserve will take place this year — and that there’s a chance that no cuts actually take place. “I think inflation is reaccelerating. I think there’s a lot of indication of that,” the famed investor said during the Sohn Investment Conference in New York. Einhorn’s comments come after fresh U.S. data raised concern over persistent U.S. inflation. The core personal consumption expenditures price index rose 2.8% in February, as expected . That’s well above the Fed’s 2% inflation target. As a defense play against a potential market downturn, Einhorn also said he is loading up on his gold position . Greenlight Capital owned $74 million worth of the SPDR Gold Trust fund (GLD) at the end of the fourth quarter, according to VerityData and regulatory filings. “We own a lot more gold than just the GLD. We own physical bars as well, so gold is a very large position for us,” Einhorn said. “There’s a problem with the overall monetary and fiscal policies of the country, and if both policies are systemically too loose, I think the deficits are ultimately a real problem. And I think that this is a way to hedge the risk of something not-so-good happening.” Value investing opportunities Despite his concerns, Einhorn said opportunities are emerging in value stocks, which he thinks are misunderstood nowadays. One of his highest returning strategies are to invest in spinoffs, he said, naming Belgium-based chemicals and plastic products company Solvay as his best stock idea . Solvay, which is down more than 70% this year, spun off its specialty chemical activities into a new company named Syensqo in December, when he began picking up shares of the company. Solvay is a a top-five position for Greenlight Capital. “When I say that the market is broken, what I’m saying is there’s not enough money that is being dedicated to investing, trying to identify undervalued companies, reward companies with new capital that have good opportunities for growth and to punish companies that don’t have such good situations, because the professional industry of figuring this stuff out has largely been eradicated,” Einhorn said. Einhorn’s Greenlight Capital manages about $2 billion in assets. The fund lagged the S & P 500 last year, returning 22.1%, net of fees and expenses. The broad market index was up 24.2% in 2023.