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) and JPMorgan Chase (JPM).
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) and Bank of America (BAC). 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.Follow this writer on Twitter.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV