Tuesday, April 12, 2011

Chanos Long on (FMCN) (C) (NYX) (NDAQ) (RAX)

Jim Chanos has built his reputation on his short sales, but that has changed some, according to the latest filing of Kynikos Associates LP, which via its 13F form shows the company has taken long positions in a number of holdings, including Citigroup (NYSE:C) NYSE Euronext (NYSE:NYX), NASDAQ OMX (NASDAQ:NDAQ), Focus Media Holding Ltd (NASDAQ:FMCN) and Rackspace Hosting (NYSE:RAX).

This may be the first time Chanos's company has entered into long positions, suggesting a major shift in strategy and thinking.

It will bear watching over the months ahead to see if this is a long-term shift for the shorting legend.

There are numerous theories as to why Chanos has started going long, one of which is new investors may be pressing him to become more investment-neutral than in the past.

It'll be interesting to see if he offers up an explanation.

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