Renowned investor Jim Chanos recently disclosed his firm's portfolio for the second quarter of 2023, which ended on June 30, 2023. Chanos, known for his short selling strategy and critical eye for corporate fraud, has built a reputation for his ability to identify overvalued stocks and profit from their subsequent decline. His firm's investment philosophy is rooted in thorough research, risk management, and a contrarian approach to market trends.
The firm's Q2 2023 portfolio contained 63 stocks with a total value of $526 million. The top holdings were KRE (0.78%), EVA (0.13%), and SHV (0.06%).
Top Trades of the Quarter
The following were the firm's top three trades of the quarter:
SPDR S&P Regional Banking ETF (ARCA:KRE)
The firm established a new position in ARCA:KRE, purchasing 100,505 shares. This gave the stock a 0.78% weight in the equity portfolio. Shares traded for an average price of $40.75 during the quarter. As of August 14, 2023, KRE had a price of $46.78 and a market cap of $3.14 billion. The stock has returned -28.56% over the past year, indicating a potential undervaluation that Chanos' firm may be capitalizing on.
Enviva Inc (NYSE:EVA)
The firm also established a new position in NYSE:EVA, acquiring 61,774 shares. This gave the stock a 0.13% weight in the equity portfolio. Shares traded for an average price of $14.79 during the quarter. As of August 14, 2023, EVA had a price of $10.95 and a market cap of $814.85 million. The stock has returned -84.55% over the past year. GuruFocus gives the company a financial strength rating of 2 out of 10 and a profitability rating of 5 out of 10. In terms of valuation, EVA has a price-book ratio of 2.11, a EV-to-Ebitda ratio of 2110.51 and a price-sales ratio of 0.65. These metrics suggest that despite its recent performance, the firm sees potential in EVA's financials and market position.
iShares Short Treasury Bond ETF (NAS:SHV)
Chanos' firm reduced their investment in NAS:SHV by 1,810 shares, impacting the equity portfolio by 0.04%. During the quarter, the stock traded for an average price of $108.9. As of August 14, 2023, SHV had a price of $110.197 and a market cap of $20.16 billion. The stock has returned 3.88% over the past year. This reduction may reflect a strategic rebalancing of the portfolio or a response to the stock's recent performance.
In conclusion, Jim Chanos (Trades, Portfolio)' Q2 2023 portfolio update reveals a strategic mix of new positions and adjustments to existing holdings. As always, investors should conduct their own research and consider their individual risk tolerance before making investment decisions.
