Jim Chanos sat down for an interview with Yahoo Finance today. Jim Chanos notes that most of his assets are not reported on the hedge fund’s 13F; he thinks its misleading for investors to read too much into 13Fs especially for hedge funds with lots of short positions. Chanos states that he dissuades retail investors from shorting stocks, partially because of tax inefficiencies. Additionally, retail investors do not get paid interest like Chanos does when he shorts a company. He notes that the US market has gone up quite a bit while Europe and China have been staying flat. Chanos thinks the US is the best house but it is getting more expensive.
In response to a question about the macro situation in the US, Chanos notes that he is not a macro guy but he thinks the deleveraging will be continuing in the US and China still faces problems. He says that this is not what a recovery looks like four years out.
Chanos discusses some of his shorts and discusses some of his tech shorts.
He sees problem with both the business models and the accounting. He specifically points out Dell Inc. (NASDAQ:DELL) and HPQ. He notes that both companies spend very little on R&D, and they cannot be compared to companies like Apple which spend a tremendous amount on R&D. Additionally, Dell Inc. (NASDAQ:DELL) and HPQ are making large acquisitions and are therefore are buying their R&D. If they expensed the research & development they would be reporting losses.
Jim Chanos is ‘completely mystified’ by the frenzy over Dell.
The full video is embedded below: