Hedge fund manager David Einhorn thinks the current market environment for cult stocks is similar to the dotcom bubble.



"Investors remain hypnotized by Tesla's CEO ... The enthusiasm for Tesla and other bubble basket stocks is reminiscent of the March 2000 dotcom bubble," Einhorn said on the Greenlight Capital Re first-quarter conference call Wednesday, according to a FactSet transcript.

"While we don't know exactly when the bubble pop, it eventually will," he added.



Greenlight Capital Re is a property and casualty reinsurance company based in the Cayman Islands and Ireland. Einhorn manages an investment portfolio for the firm.



The hedge fund manager also commented on his fund's largest position, General Motors, on the call:

"GM trades at a significant discount to its intrinsic value despite the company's strong operating performance … By placing what we believe are conservative valuations on each component, it's easy to get a value that is 27% to 79% higher than the current share price. We generally avoid public activism, but in this case management has misrepresented our idea, and we think our fellow shareholders deserve an opportunity of new way the merits of our plan for themselves."



Einhorn proposed a dual share class structure for General Motors in March aimed at increasing shareholder value.



He noted the company's investment portfolio was 105 percent long [$105 of long positions for every $100 of capital] and 75 percent short [$75 of short positions for every $100 of capital] at the end of April.