This was a great interview with Jim Chanos where he outlines his short investment theses on China, the PC market, and Petrobras (PBR). He describes his firms strategy as being long the market, and then his performance fee is based on the performance of his shorts beating the market. I really agree with his sentiments on shorting the Chinese banks, as I see no way that they can avoid taking substantial losses from the hard lending bubble that has occurred in the region. Shorting is a strategy we rarely employ at T&T Capital Management, and we aren’t short currently, but if the stocks were to rise significantly it would be something worth evaluating.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.