Jim Chanos Ira Sohn coverage Brought to you by ValueWalk.
Jim Chanos is Founder and Managing Partner of Kynikos Associates LP., the most famous short biased hedge fund. Jim Chanos seeks to profit from the unusually high alphas found on the short side (and sometimes long side) of the U.S. and non-U.S. equity markets (see Chanos’ massive European short portfolio here). Jim Chanos looks for cases of fraud as well as companies which he believes are value traps. Some shorts which Jim Chanos has publicly disclosed, Dell Inc. (NASDAQ:DELL) and Hewlett-Packard Company (NYSE:HPQ). Chanos also has many short positions in Chinese equities and companies with exposure to China (especially its real estate sector). The famous short seller believes that the country has created one of the largest bubbles in history.
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Our coverage of Chanos’ presentation below.
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Jim Chanos Ira Sohn Conference Live
4:20 PM EST: Chanos is taking the stage, he’ll be talking about mobile computing and its effects on hard drives.
4:24 PM EST:Chanos says people don’t appreciate that PC sales “have just begun to decline.”
4:26 PM EST: Chanos says that hard drive makers like Western Digital and Seagate look cheap, but it’s a value trap. He’s very bearish on the industry/
4:27 PM EST: Floods in Thailand have made hard drive profitability unsustainable.
4:29 PM EST: Cloud computing is reducing demand for hard drives. Supply is getting way ahead of demand in storage.
4:31 PM EST: Chanos picks Seagate as the hard drive maker to short.
4:32 PM EST: Insider selling at Seagate has been massive. One of their top executives quit yesterday.
4:34 PM EST: Convergence is destructive says Chanos,
4:35 PM EST: David Einhorn will speak at around 6 PM. He’s very long Seagate, holding about 2.33% of the company.
4:36 PM EST: Hard Drives are PC businesses with a year of lag. Seagate shares have fallen 2% since he started.
Chanos is finished. It will be interesting to see Einhorn’s response later on.