Hedge fund guru David Einhorn remains high on gold, and is now making a bullish bet on gold miners as well.

“During the quarter we exchanged a portion of our gold position for additional investment in the Market Vectors Gold Miners ETF,” states the recently released third-quarter letter from Greenlight Capital, Einhorn’s firm (a tip of the cap to Insider Monkey for posting the letter, which is available in PDF form here). “While the price of gold has advanced significantly, the shares of gold miners have not. It has reached the point where gold mining stocks should do well even in a stable gold market; we expect the price of gold to appreciate further, so gold miners should do even better.”

The letter adds that, “Even with the reduction, physical gold continues to be our largest portfolio holding.” It calls the third quarter “eventful”, and says that “while the market had a broad decline with a lot of volatility, our conservatively positioned portfolio essentially went sideways with much lower volatility. Generally, our longs fell a bit more than the market, but our shorts fell even more and our macro investments helped mitigate the loss from being net long in a declining market.”

In addition to gold, the letter mentions several stocks that Greenlight is bullish on, including CBS Corporation, General Motors, and Marvell Technology Group. And it explains at length why Einhorn’s firm has turned very negative on Green Mountain Coffee Roasters.