Legendary short seller Jim Chanos is closing the door on his hedge funds, bringing a 40-year career to an end as the industry has shifted, says the Wall Street Journal. With equities holding strong against bearish expectations in 2023, the market for his funds has changed, he said, adding that it is no secret that long/short equity business models have come under pressure. His funds have fallen 4% this year while the S&P 500 surged 18%. Chanos & Co. will limit its operations, running separately managed accounts while his firm brought in over $5 billion in profit since 1985. Chanos’ most notable bets include a bet against Enron in 2001 and against Tesla. He made nearly $100 million shorting the German payments company Wirecard and closed a short position on fraudulent Chinese company Luckin Coffee that same year. He predicted a downturn in the Chinese stock market, which has played out in 2023, and continues to hold a bearish outlook on the Chinese economy, characterizing it as a “treadmill to hell.”
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