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Jim Chanos: HP Was "Willfully Blind" on Autonomy Deal

November 21, 2012 | About:
Dheeraj Grover

Dheeraj Grover

Well-known short-seller and hedge fund manager Jim Chanos of Kynikos Associates LP was on CNBC to share his views after Hewlett Packard (NYSE:HPQ) announced a write down of $8 billion on the Autonomy deal.

-- HP was "willfully blind" and ignored all the red flags regarding Autonomy's aggressive accounting tactics.

-- HP did not do any due diligence on the deal and was in a hurry to close the deal.

-- This whole HP/Autonomy situation is a debacle.

-- Jim is still short on HPQ and thinks that HPQ's board need to do some serious reexamining.

-- HPQ is still struggling among all lines of its businesses and on top of it has a lot of debt.

-- Until they have mobility or tablet strategy HPQ is going to struggle.

Credit and source:, CNBC

Here is the video:

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 3.4/5 (12 votes)


Superguru - 2 years ago
On hpq it was chanos versus value gurus. And chanos is winning.
Sapporosteve premium member - 2 years ago
Shouldn't some value investing gurus be having a revisit of their investment thesis and process where they missed something like this?

Klarman is famous for the margin of safety and his continuous speaking of not losing money which to me indicates that they would be super thorough before putting any money down. Taking a hit on $250 million must hurt.
Superguru - 2 years ago

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