After over three decades in business, Jim Chanos, one of Wall Street’s most notable bears, has announced that he plans to close his main short-focused hedge funds. The decision comes at a time when there is less interest in fundamental stock pickers and the long/short equity business model is increasingly under pressure. In his letter to investors, Chanos expressed that despite his passionate connection to research and investing, he has been compelled to pursue these passions in a different construct.
Chanos, 66, has shared that the majority of the funds will be returned to investors by year-end, and he will continue to offer bespoke advice on fundamental short ideas as well as some macro insights after closing the funds. Despite his high-profile public profile, the headline-grabbing short-seller has consistently maintained a sceptical outlook, even claiming that “we are in the golden age of fraud” in an interview with the FT in 2020.
Jim Chanos rose to prominence after betting against Enron, the energy trader that famously collapsed in 2001. Since then, he has continued to operate on a cautious and critical investment approach, warning about the risks of a credit crisis ahead of the 2008 financial disaster and shorting data centers despite their popularity among investors. Even though some of his big bets like Tesla haven’t paid off, Chanos has consistently maintained a skeptical approach.