The past year was not kind to short sellers

Posted on April 9, 2021 by Florian Buschek

…even though they are desperately needed (the good ones at least, not the likes of Melvin).

Assets Have Tanked at Two of the World’s Biggest Short Sellers is a recent article from II.

Jim Chanos’ Kynikos Associates and Jim Carruthers’ Sophos Capital — both of which started 2020 with around $1 billion in regulatory assets — ended the year a shadow of their former selves. Chanos, arguably the most well-known short seller in the world, lost more than 50 percent of its assets last year. Kynikos ended 2020 with about $405 million in regulatory assets under management, down from around $932 million the prior year, according to annual ADV filings with the Securities and Exchange Commission. The long bull market has punished Chanos for years. In 2018, when Institutional Investor profiled him, Kynikos ran just under $2 billion, having already lost almost three-quarters of his assets since the financial crash of 2008, when it ran $7 billion.

I like Chanos a lot, his track record is great and he is a very enjoyable person. What a shame.

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Scott Shuda

So it would seem that the change at Citron Research, their decision to no longer publish short research, was not so much a change in philosophy, but a bid for survival?

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