Business

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 wall street


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Aussie first: wedding held at Noosa Men's Shed

Julie Lehnhoff and Gavin Menkens tie the knot at the Noosa Men's Shed.

Julie Lehnoff and Gavin Menkens tie the knot at the Men's Shed

Confusion over council or private-owned land

WHAT'S LEFT: Edwin Grantham looks at the brown remains after Noosa Council removed trees and plants from his 'private property'.

Couple return home from to find their 'tropical paradise' destroyed

No shortage let-up despite storms

BUSY: Water cartage trucks queue up at the Lake Macdonald water fill station on Lake Macdonald Drive

Rain not enough to slow water demand

Local Partners