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

finda logo
Featured Real Estate
New Owner Wanted For... $375,000
House 4 2 2
Rathgar House - Mayoral... Offers Over...
House 10 5
Perfect First Or Last... $225,000
House 2 1 1
Superb Quality & Pure... $399,000
House 4 3 3

Featured Jobs

finda logo

Clarence Valley jobs listed daily


Featured Jobs
We are seeking an... Coffs Harbour Full Time
FOREST MANAGER Coffs Harbour Full Time
Fish Farmhand Grafton Casual


Local Partners

LATEST DEALS AND OFFERS

Great Gardening...

Win a $500 gardening gift voucher
Learn More

Cars For Sale

Find cars for sale online now.
Learn More

Property Listings

Post an ad from $30
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

View today's ePaper!

Read the digital edition
Learn More

Horoscopes

Libra

No one can cramp your style today as the Moon and Mars indicate a strong drive to get mobile and physical. This is advisable. Someone is...

read more

Marketplace

Special Offers & Promotions

Compare & Save