Chanos Says Financials Have Bottomed Out

Sep 10 2008 | 3:51pm ET

With the doom and gloom surrounding Lehman Brothers, it might seem a strange time to say that financials have hit bottom. But that’s exactly what Jim Chanos has done.

The Kynikos Associates chief said on CNBC that Wall Street’s worst has past.

“We have probably seen the worst in financials,” Chanos said, adding that he has slashed his short positions in financials because most of the bad news about the sector is already out there. Instead, the $5 billion hedge fund shop is focusing on companies involved in commodities.

“We would short companies that might depend on cement prices or steel prices going up,” Chanos said. He would not say what names he is currently shorting.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note