From ValueWalk:
We are covering the WSJ Heard on The Street Event. Below are some (very informal) notes from Jim Chanos, who just wrapped up his presentation. For more coverage including the most hated man in Argentina, Paul Singer, check back later and/or follow us on twitter.
It is the 28th anniversary of the hedge fund and for the past few years, especially the last twelve months, we have seen speculative behavior the like of which we have not seen since the 1990′s.......Jim Chanos gives a disclaimerw that any stock he mentions the audience should assume he’s short,, but cannot confirm this for certain. Tesla Motors Inc (NASDAQ:TSLA) has gone beyond interesting innovation to a cult stock. These stocks are now based on wild predictions.
He notes that his analyst realized that a sell side analyst had only $5 out of the $200 price target based on current earnings. However, based on valuation it seems investors are just chasing momentum lately.
Corporate profit margins are at all-time highs. Gratham points out that we are so far away from reversion to the mean that if they don’t revert we should have valid questions about capitalism—especially some corporations from MLPs.
90 percent of assets are short—almost the opposite of a mutual fund, which basically has to be long. Chanos’ overweight (short) in China, but in the U.S. and Europe is more eclectic. Some industries are particularly vulnerable; as we have discussed PCs, as well as energy are seeing major changes....MORE
We love the Grantham quote on margins, made it a CLoD back in 2011:
And more:
