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Value Investments From Jim Chanos's Long Portfolio

  • npatel81
  • Sep 3, 2012
  • 1 min read

Jim Chanos, manager of Kynikos Associates, focuses on short-selling stocks. Investors who seek to find investments on the long side which do not alarm professional short-sellers like Mr. Chanos can look to regulatory filings to find the companies Kynikos holds as long positions. Kynikos holds these long positions based on individual merit or as hedges for its short positions in other, questionable firms. In either case, these long holdings pass the smell test from an investment team that specializes in sniffing out problems. Furthermore, nine of them are attractive investment candidates based on valuation.

Chanos Sometimes Shorts Value Traps

Many faux-value investments are flawed and end up revealing themselves as value traps. Mr. Chanos explained these value-mirages in a lengthy interview:

Probably [one of] our best ideas over the past ten or 12 years have been ideas that looked cheap and which actually ensnared a lot of value investors. The
 
 
 

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