Jim Chanos is a real downer. He bet that PartyGaming’s shares would take a nosedive after the US passed their awful Unlawful Internet Gambling Enforcement Act last October… and won. That son of a bitch. It’s gamblers like him that give playing the stock markets a bad rap.
James S. Chanos established the New York private investment management firm, Kynikos Associates, in 1985 with the intention of specializing in short-selling, an investment method which profits by locating fundamentally overvalued securities that are bound to fall in value. And what goes up will indeed come crashing down, especially when publicly traded online gambling firms are ‘dealt’ a devastating blow by the United States of America in the form of prohibition.
Chanos, the notorious short-seller was among the first to suspect something was rotten in the state of Enron, and cashed in mega-time on his suspicions. Few other investment managers can boast the same. And like his style or not, Big Jim repeatedly demonstrates having one of the shrewdest investment minds today. Although regularly criticized for predicting and betting on poor corporate earnings among publicly traded companies, short-sellers rank among the most successful investors in the game. Indeed, these professional gamblers, oops – ‘speculators’ – are often the first ones to sound the alarms about any potentially fraudulent corporations. Thus these fine folks should be held in much higher esteem.
Jim Chanos for president!