Hedge fund slams Fortescue

PROMINENT hedge fund manager and short seller Jim Chanos has singled out Fortescue Metals as a ''value trap'' stock, telling a New York conference that shares in billionaire Andrew Forrest's company will fall ''materially''.

In a presentation to Grant's Spring Conference, a private investment forum, this month, Mr Chanos, the boss of Kynikos Associates, told investors he feared iron ore miner Fortescue had ''a somewhat promotional management team''.

He singled out the company headed by billionaire Andrew ''Twiggy'' Forrest as the global example of a ''value trap'' in the ''iron ore rush'', adding that he was betting against the company.
Advertisement: Story continues below

''In our hedge fund, we are long BHP v Fortescue and others,'' said Mr Chanos, according to an account of his presentation in Grant's Interest Rate Observer, the publication of the conference organisers.

''BHP is a much more stable company. They see the cycle more than others do, they've been through it more than others have and it's been an interesting hedge for those that play it that way.''

Read more at Brisbanetimes.com.au
 

Topics:  andrew forrest, fortescue metals, grant's spring conference, jim chanos, wall street



Local Real Estate

Featured Real Estate
D.I.Y. OR INSTALLED HOME... $9500.00 From
Mobile Home Fully self contained granny flat or mod homes.  D.I.Y $9.5k or $12.5K ...
Great 2 Bedroom... $260 per week
Unit 2 1 1
Low set, flood free... $330 per week
House 3 1 1
Great Location - Don't... $365,000...
House 4 2 2

Featured Jobs

Clarence Valley jobs listed daily

Featured Jobs
Registered Nurse Mareeba Part Time
GIS ANALYST Ballina Full Time
DISABILITY WORKER Grafton Full Time
RANGER $109655.00
Ranger Grafton Ranger Grade 1/2 Ongoing Full-time Vacancy Ref: OEH 183-14 Total ...


Local Partners

LATEST DEALS AND OFFERS

View today's ePaper!

Read the digital edition
Learn More

Your Chance to Win!

Win a Family Beachside Escape...
Learn More

Cars For Sale

Find cars for sale online now.
Learn More

Subscription Sale

Subscribe now for $1 for 14 days.
Learn More

Local Profile

Stay Connected

Get the news as it happens, in your inbox

You can change the newsletters you are subscribed to when you edit your profile

Edit Profile


Special Offers

Latest deals and offers

Horoscopes

Cancer

Love and passion may fall short of your ideal and just now you may not be nurtured in the way you want. Ask for it. You'll come across with...

read more

Marketplace

Special Offers & Promotions

Compare & Save