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Jim Chanos, the legendary short seller known for his bearish bets against Enron and Tesla Inc., is shuttering his hedge funds after almost four decades. Chanos & Co., which he founded as Kynikos Associates in 1985, plans to return most capital to investors by the end of the year, according to a letter to clients Friday. “It is no secret that the long/short equity business model has come under pressure and interest in fundamental stock pickers has waned,” Chanos wrote. “While I am as passionate as ever about research and investing, I feel compelled to pursue these passions in a different construct.” His hedge funds have dropped about 4% so far this year, and the firm’s assets have shrunk to less than $200 million from about $8 billion in 2008. Chanos, 65, will continue to run his firm, mostly investing his personal capital but also managing money for certain clients in separately managed accounts. His firm will continue to offer investors “bespoke advice on fundamental short ideas and portfolios as well as the occasional profitable macro insight,” Chanos wrote. As it winds down, clients will get roughly 90% of their cash back by year-end, and the rest in the first half of next year. Chanos, a frequent presence on television and X, the social media platform previously known as Twitter, said he’s shuttering the funds after returning almost $5 billion of profits to investors since the firm’s inception. The Wall Street Journal reported on his decision earlier. Chanos started an analyst in the early 1980s, publishing sell-side research when the realized he had a knack for finding troubled companies. Raised in Milwaukee, he initially planned to be a doctor before switching gears to get an economics degree from Yale University. When he started his New York-based firm, he picked the name Kynikos — the Greek word for cynic. His firm tended to look at three types of shorting themes: consumer fads, debt-fueled asset manias and companies with accounting anomalies. He’s most famous for being among the first investors to notice problems at Enron — a year before the energy company imploded — and helped expose a massive fraud, riding the stock’s decline from an average $79.14 a share in 2000 through December 2001, when it plummeted to 60 cents. Tesla, IBM More recently, Chanos maintained a bet against Elon Musk’s Tesla for more than five years — and got burned. The stock has soared more than 1,500% since 2015. Chanos had taken issue with the company’s business model and its valuation, and said in 2020 that its quarterly profits were driven more by sales of regulatory credits than cars. That year, one of his biggest short positions was on International Business Machines Corp., saying the tech giant used “financial engineering” to mitigate its deterioration. He has also been a vocal bear on China and made $100 million by shorting German payments company Wirecard AG. Read: https://lnkd.in/ey7Dw2si

Greed made $64,800,000,000 disappear overnight. This is the story of hedge fund manager Bernie Madoff. Let's look at how he did it and how you can avoid it. Madoff grew up in Brooklyn, New York dreaming of being on the New York Stock Exchange. He began his career as a penny stock trader looking to find a way into the New York City stock market scene. With some success, he was able to become a market maker for the New York Stock Exchange. He was able to earn this by helping to fill the small orders no large firm would help with. Bernie used to say, "I am happy to take the crumbs." This led to his first accomplishment where he and his brother built one of the first electronic trading firms which led to a massive amount of order flow. Turns out the order flow is very valuable and he was able to sell the order flow which showed market activity. It is estimated Madoff was making $100,000,000 annually off of order flow. This is where the greed caught up with him. With his credibility skyrocketing he decided to raise his first fund from wealthy credible investors. He was pitching a strategy that was a legitimate strategy being used in the marketplace. Money flooded Madoff's hedge fund to the tune of $64,800,000,000. Madoff then headed down a slippery slope by fudging returns and using new investors' capital to fund the redemptions of existing customers. This continued for over a decade until it all caught up to him. 2008 Happened. December 10th, 2008 Madoff had no way to raise money to fund the redemptions that where requested. He confessed to his sons who turned him in the next day. This led to a life sentence and restitution to be paid in the billions. This is a reminder to do proper due diligence. Get educated and make good decisions. --------------------------------------------------------------------------------------- If you enjoyed this, share it ♻️ follow Luke Turner, CFP®, CEPA® for more stories and lessons on entrepreneurship.

A FASCINATING ARTICLE ABOUT THE FOUNDER OF ONE OF THE WORLD'S LARGEST HEDGE FUNDS If you are in financial services or if you follow hedge funds or the uber-wealthy, you will probably find this article interesting. But first let me ask you: have you been following the recent news about Bridgewater Associates? Rob Copeland has penned a fascinating just-released (November, 2023) book titled The Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend that a lot of people are talking about. Described on Amazon: "The Fund is a page-turning, stranger-than-fiction journey into a rarefied world of wealth and power." If you don't have time to read the book, read this article for a fascinating behind the scenes look at Ray Dalio and the unique corporate culture he created at Bridgewater Associates, one of the largest hedge funds in the world: https://lnkd.in/gEd-Jt9a There is no firewall, so take advantage of this. Among other things you will learn is that when Ray Dalio retired a few years ago, he apparently exited Bridgewater with a golden parachute that pays him about $1 billion. Per year. Yes, that is $1 billion per year. Dr. Donald Moine #HedgeFunds #RayDalio #BridgewaterAssociates #DrDonaldMoine

End of an Era: Jim Chanos Closes Iconic Hedge Funds 👇 Jim Chanos, a prominent figure on #WallStreet, known for his legendary short-selling strategies, is closing his main hedge funds after over 30 years in the business. Chanos gained fame for his successful bet against Enron in 2001. However, his recent attempts to short Tesla didn't pan out as planned, highlighting the challenges in the industry. Key highlights: 🔍 Shift in Market Dynamics: In a letter to investors, Chanos pointed out the declining interest in fundamental stock picking and the challenges faced by the long/short equity business model, signalling a shift in market trends. 🌐 Pursuing New Avenues: At 66, Chanos remains passionate about research and investing but is looking to explore these interests differently, focusing on offering bespoke advice on fundamental short ideas and macro insights. 📈 Impressive Track Record: Despite market challenges like zero-interest rates and meme stock mania, Chanos’s short positions have outperformed, with significant annualized alpha since 2018. 🚨 Controversial Practice, High Profile: Short selling, often a controversial practice, was a staple in Chanos's strategy. Unlike many short sellers who prefer a low profile, Chanos has been a notable public figure in the financial world. 📉 Notable Bets and Insights: Despite some losses, like with Tesla and large tech firms, Chanos's scepticism has led to significant gains, including a $100 million profit from shorting #Wirecard before its collapse. 🔮 Legacy of a Market Sceptic: Chanos, who founded Kynikos Associates in 1985, has been a vocal critic of market irregularities, often warning about financial crises and fraudulent practices, solidifying his legacy as a keen market observer. #investing #marketinsights #hedgefunds #marketnews Source - https://lnkd.in/eH3VdcGA *** If you enjoyed reading this or learned something, ♻️ share this with others and 🔔 follow me Taras Rybak for more.

Ken Griffin, a prominent hedge fund manager In the world of finance, few stories are as inspiring as that of Ken Griffin. With a relentless pursuit of excellence and an unshakable belief in his abilities, Ken's journey from a young, passionate trader to a legendary hedge fund manager is a testament to the heights that can be reached in the stock market. Ken's fascination with financial markets began at an early age, and he wasted no time in making his mark. Starting with just a modest investment, he developed a unique talent for spotting hidden opportunities in the stock market. His early successes only fueled his ambition to learn more and do better. With years of dedication, Ken honed his trading skills, diving deep into the world of quantitative analysis and risk management. His unwavering commitment to staying ahead of the curve set him apart. In 1990, he founded Citadel, a hedge fund that would later become a powerhouse in the industry. Under Ken's leadership, Citadel consistently delivered remarkable returns, even during turbulent market conditions. His ability to adapt to changing market dynamics, combined with a team of exceptional traders and cutting-edge technology, propelled Citadel to the forefront of the hedge fund world. Ken Griffin's influence extended beyond his own success. He was a visionary who understood the importance of giving back and sharing his knowledge. His philanthropic efforts in education and finance have left an indelible mark, ensuring that future generations have access to the same opportunities that he had. Ken Griffin's story is a testament to the possibilities in the world of stock market trading. His journey reminds us that with unwavering determination, continuous learning, and an unyielding belief in one's abilities, remarkable success can be achieved in the ever-evolving financial markets. His legacy serves as an inspiration to traders and investors worldwide, showing that even the sky is not the limit when it comes to achieving success in the stock market. #investment #Stockmarket #nifty #trader #money #Optiontrader #Traders

Billionaire investor Ackman kicks off fundraising for new US fund Hedge fund manager Bill Ackman kicked off fundraising for a new U.S.-listed closed-end fund on Tuesday. The new fund, Pershing Square USA Ltd, will offer lower fees for investors and quicker access to capital than traditional hedge funds, regulatory filings show. There will be no management fee charged for the first year after the fund's initial public offering and no performance fees ever. It will be listed on the New York Stock Exchange and be available to anyone who can invest in the U.S., including pension funds, endowments and retail investors. Roughly 80% is expected to be raised by institutions, with retail investors making up the rest, a filing made Tuesday shows. Ackman, a heavy user of social media platform X, referenced the fundraising on Tuesday when he messaged his 1.3 million followers "I am going to be busy for the next few weeks. $PSUS!!" Investors, including ones unable to write the multimillion-dollar checks Wall Street hedge funds traditionally demand, can pay $50 a share for the new vehicle. #billackman #retailinvestors #newlaunch #wallstreet #money #X #socialmedia #hedgefund # source : reuters

Hedge funds operate differently now than they did during the “golden age” of the 90’s and early 2000’s. Part of this is due to algorithmic trading making markets more efficient, thus destroying a lot of alpha. Part of it is due to regulatory changes increasing compliance costs and reducing speed. Several other factors have changed the type of investment vehicles that employees prefer for retirement — risk appetites have decreased in the wake of the financial crisis and pensions are by and large going away. With companies preferring 401(k) plans and benchmark returns through traditional wealth management, there have been several outflows from hedge funds as the years have progressed. These types of plans put less pressure on employers to generate returns for future payouts, and matching contributions is a much easier and sustainable option. More on these factors and the evolving nature of hedge funds in this week’s issue of Monday Momentum: https://lnkd.in/eQrDrTF2

Ready to make the big leap from Robinhood to a well-known hedge fund like Citadel and Bridgewater Associates? Well, hold on a minute because there’s something you should know… You can’t just go online and open an account with one of these firms the same way you can with Vanguard or Fidelity. Generally, to become an investor with a hedge fund and private equity firm, you have to prove that you qualify as an accredited investor. What’s an accredited investor? The U.S. Securities and Exchange Commission defines one as someone with either: -A net worth over $1 million, excluding your primary residence (individually or with spouse or partner) -Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year Basically, the idea is that if you’ve been able to attain such a high level of wealth up to this point, then you’ve probably got the knowledge, skills, and experience to make prudent decisions about whether or not to invest with these types of financial institutions. This isn’t necessarily financial discrimination. A lot of it has to do with how these investments are structured. Without getting too technical, when someone hands their money over to a hedge fund, they essentially become a business partner of the entity. Obviously, there are a lot of legal and tax implications that come along with such a partnership that go beyond buying a few shares of common stock. The good news is that even if you don’t qualify as an accredited investor, who cares? You can still be financially savvy and build a massive net worth just by practicing good money management and systematically making smart contributions over time. Half the time these exclusive investments don’t outperform retail investments anyway. My favorite story of this is Warren Buffett famously made a bet back in 2008 with a hedge fund that they couldn’t beat the S&P 500 index. Ten years later he won by a landslide - the S&P 500 was up 125% while the hedge fund only gained 36%. That should give you some insight into just how much better a simple strategy can work over an unnecessarily complicated one. https://lnkd.in/g23yaB4x

Amazing lesson from one of the biggest hedge fund managers of our times. Stanley Druckenmiller, he worked very closely with George Soros and also ran his own hedge fund – Duquesne Capital Management. Over a career that spanned over 30 years (1980-2010), his track record is remarkable. An average annual return of 30% per year without any money losing year. 🤑 This is his biggest investing mistake. Druckenmiller made a killing in the stock markets during the dot com boom in the late 90’s. In the year 1999 itself, he made BILLIONS of DOLLARS after which he sold everything off in January 2000. Now, working with Soros at the time, there were some smaller portfolio managers from the team who did not sell out. And as markets went higher, Druckemiller watched agonizingly as markets refused to slow down. His peers were racking up the gains - 30% higher from the point he had sold! FOMO. It happens to even the best. Pained at being left out of the action, he did then buy. And hedge fund managers buy BIG. Unfortunately, that’s when the market crashed. Between 1995 and its peak in March 2000, investments in the NASDAQ composite stock market index rose 800%, only to fall 78% from its peak by October 2002, giving up all its gains during the bubble. Druckenmiller lost 3 billion dollars due to this misadventure. He admitted that it was his Emotions that got the better of him, causing him to abandon his disciplined investing method that had worked successfully for him all these years. He was kicking himself for years to come! The PCC take – Investing (especially once your corpus is more meaningful), is not so much a fund management game (picking the best funds), but more an emotional game. The Best investors focus more on keeping their emotions under check. And we can all strive to be the Best – What really helps is - A well-designed portfolio   - Practicing disciplined risk management - Seeking professional support Get to that finish line – that’s all that matters! #longterminvesting #investing #mutualfunds #mutualfundssahihai #compounding PCC Investing

Hello, esteemed connections! Buckle up as May Madness marches onto more big-ticket events! We are proceeding full steam ahead into yet another month fraught with unbeatable, exclusive real estate opportunities. The table is set, and hedge funds are in the crosshairs of the bulls-eye, magnifying the ever-present potential that real estate holds! • Eager to wrangle potentially lucrative deals? • Ready to plumb the depths of the rewarding real estate market? Rest assured, you're in the right place at the right time! Being privy to the cavalcade of exciting, exclusive deals that flood the market this May, I can hardly contain my exhilaration! It's an incredibly favourable time period for hedge funds to tap into. An enviable roster of deals and transactions are waiting in the wings, ready to reward strategic and visionary hedge fund operators. Strategizing the moves: • Position yourself strategically – Now's the time to buckle down and perfect your manouvers. The real estate sector is rife with golden opportunities just waiting for the right hedge fund to come along and scoop them up. • Analyze and adapt – In-depth market study and skillful adaptation to such analysis can pay off handsomely in the form of a perfect deal that suits your needs and goals. • Execute with precision – Time your strategy for an ideal execution. Ensure that all underlying factors and conditions sync perfectly to grab the best deal. Increased demand in the real estate market is a beacon of hope for many around the globe. By capitalizing on these deals, hedge funds could not only enjoy rewarding returns but also contribute towards reinvigorating the market, heralding a wave of prosperity that spreads its benefits far and wide. It's time to brace ourselves, strategize and dive headlong into these exclusive deals. The rewards are there for the taking, and the real estate market is enticing the bold and the daring. Hedge fund operators, your time is NOW! The clarion call has been sounded – May it bring unfathomable growth and prosperity to your portfolios! The secret of change is to focus all your energy, not on fighting the old, but on building the new. +