David Einhorn, the founder of hedge fund Greenlight Capital, which has chalked up a return of 27.7% in the first nine months of 2023, is "worried about the direction of the market", according to a report by Reuters.

The report cites Einhiorn as saying in a letter to investors seen by Reuters that that he is bracing for higher oil prices and ready to buy beaten-down stocks.

"Current extreme levels of geopolitical tension will lead to lower stock prices over a time frame that lasts more than a couple of hours," Einhorn wrote.

Reporting some of his best returns in years, Einhorn said Greenlight's funds gained 12.9% during the third quarter when the S&P 500 index lost 3.3%.

The letter added that "It's a tricky time and we remain worried about the direction of the market. Higher oil prices would squeeze the consumer and likely cause a recession."