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Chanos Reveals Global Bank Investment Strategy

NEW YORK ( TheStreet) --Jim Chanos, short-selling founder of Kynikos Associates, shed a bit more light on his bank investments across the globe in an interview with Bloomberg Television , including his long positions in Citigroup (C - Get Report) and JPMorgan Chase (JPM - Get Report).

Chanos elaborated on statements he made recently on CNBC, where he argued U.S. banks were the first to deleverage and are now poised to resume growth. Asia's banks, on the other hand--particularly Chinese ones, are just beginning that process, Chanos contends, and European institutions are in the middle stages of reducing leverage. His long positions in JPMorgan and Citigroup, he explained, are hedges against short bets in Europe and Asia, particularly China.

Speaking to Bloomberg, Chanos disclosed that one of his short positions is Agricultural Bank of China (ACGBY). He also gave a bit more detail about why he chose JPMorgan and Citigroup as longs rather than Wells Fargo (WFC - Get Report) and Bank of America (BAC - Get Report). Those latter two banks, Chanos said, are more domestically focused, and so do not work as well to offset his short positions. A call to Chanos wasn't immediately returned.

-- Written by Dan Freed in New York.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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ACGBY $8.92 0.00%
BAC $14.56 0.00%
C $46.28 0.00%
JPM $63.20 0.00%
WFC $49.98 0.00%


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