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You can only use his strategy if you do the work on the short side and come up with good ideas. That's what his actual edge is. He doesn't have to disclose shor
by IBM 8y ago
You can only use his strategy if you do the work on the short side and come up with good ideas. That's what his actual edge is. He doesn't have to disclose short positions like he does long positions in 13-F filings, so you only know what he's short if he's willing to talk about it publicly.
Being a short seller is like playing a game on hard mode. The bias of most market participants, sell-side analysts, self-promoting CEOs, and frauds are to the long side. Being net long is the only way to stay in the game over decades like Chanos has.
Chanos has been short TSLA for 4 years, and that's only been possible because the fund is net long [1]. The only reason he probably hasn't shut the short-only fund is because clients who allocate to it are probably hedging other long exposure they have allocated to other managers.
[1] https://www.youtube.com/watch?v=Zv3YhMzS0z4 https://www.youtube.com/watch?v=Zv3YhMzS0z4