Coming off an “exceptionally good year” with 36.6% returns for his hedge fund, Greenlight Capital star manager David Einhorn says investors should be “bearish on stocks and bullish on inflation,” CNBC reports.

Inflation and interest rates could surprise to the upside, says Einhorn, who believes the stock market will decline again in 2023.

While the Federal Reserve has increased interest rates to their current range of 4.5%-4.75%, the highest since October 2007, Einhorn thinks the Fed’s target rate will be higher than the current 5% consensus.

“Both long- and short-term rates are headed higher — and probably higher than what people are expecting,” Einhorn said Wednesday on CNBC’s “Halftime Report.”

Einhorn attributed Greenlight’s stellar year to shorting the very innovative technology stocks that Ark’s Cathie Wood has lauded.

Einhorn says he is short a number of other “bubble” names, and, in a recent investor letter, compared last year to 2001, the year following the dot-com crash.

To that point, Einhorn is long a number of “ridiculously” undervalued technology stocks that are “returning tons of capital.”

At the end of 2022, three of Greenlight’s biggest positions included Green Brick Partners, Brighthouse Financial and Consol Energy.

Einhorn also went on the record last year to cite three other winners: Atlas Air Worldwide, Teck Resources and Twitter.

Greenlight Capital is a long-short, value-oriented hedge fund that Einhorn founded in 1996.