Jim Chanos' Most Heavily Weighted Trades in Q1 2015

Author's Avatar
May 20, 2015
Article's Main Image

Famed short seller 

Jim Chanos (Trades, Portfolio) went to Wall Street in 1980, doing investment banking deals. In 1982 he got the first short idea. That got him thinking about short as a business. Now he's running $6 billion, $5.5 in short. He is now holding a portfolio composed of 36 stocks (16 of them bought on Q1, 2015) and with a total value of $213 million.

On Q1, 2015 he did 48 trades, and the following are the ones that had the strongest impact on his portfolio (I am listing just trades of stocks, but he also traded even some ETF; for the full list, visit this page).

He sold out his stake in Valero Energy Corp (VLO) (an impact of 4.50% on his portfolio). Its refineries produce conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants and other refined products as well as a slate of premium products including CBOB and RBOB, gasoline meeting the specifications of the California Air Resources Board (CARB), CARB diesel fuel and low sulfur and ultra-low sulfur diesel fuel.

03May20171112191493827939.jpg

The company has positive returns (ROE of 18.44%, ROA of 8.05%, ROC of 20.49%) and a financial strength rated 4/10. Its price rose by 10% over the last 12 months and is now trading at a P/E (ttm) ratio of 8.40. It looks undervalued by 44% according to the DCF model.

Since that buy the price of the stock rose by 7%.

He sold out his stake in Morgan Stanley (MS) (an impact of 4.10% on his portfolio). The company through its subsidiaries and affiliates, provides financial products and services to a diversified group of clients and customers, including corporations, governments, financial institutions and individuals. It has three business segments: Institutional Securities, Wealth Management Group and Asset Management.

03May20171112191493827939.jpg

The company has positive returns (ROE of 6.12%, ROA of 0.53%, ROC of 68.91%) and a financial strength rated 6/10. Its price rose by 29% over the last 12 months and is now trading at a P/E (ttm) ratio of 19.00. According to the DCF model, the stock at current prices looks overpriced by 30%.

Since that buy the price of the stock rose by 8%.

He sold out his stake in Lazard Ltd (LAZ) (an impact of 3.40% on his portfolio). The company is a financial advisory and asset management firm that has long specialized in crafting solutions to the complex financial and strategic challenges of its clients.

03May20171112201493827940.jpg

The company has positive returns (ROE of 73.47%, ROA of 13.25%, ROC of 213.87%) and a financial strength rated 8/10. Its price rose by 12% over the last 12 months and is now trading at a P/E (ttm) ratio of 18.10. According to the DCF model, the stock at current prices looks overpriced by 24.

Since that buy, the price of the stock rose by 12%.

He reduced by 58.09% his stake in SunEdison Inc (SUNE) (an impact of 3.14% on his portfolio). The company is engaged in the manufacture and sale of wafers and related products to the semiconductor and solar industries. The company is engaged in two reportable industry segments: Semiconductor Materials; and Solar Energy. In Semiconductor Materials Segment the company offer wafers with a wide variety of features satisfying numerous product specifications to meet its customers' exacting requirements.

03May20171112201493827940.jpg

The company has very bad returns (ROE of -635%, ROA of -9.18%, ROC of -11.30%) and a financial strength rated 6/10. Its price rose by 66% over the last 12 months and is now trading at a P/E (ttm) ratio of 67.90.

Since that buy the price of the stock rose by 36%.

He bought 67,788 shares of McDonald’s Corp (MCD) (an impact of 3.1% on his portfolio). The company franchises and operates McDonald's restaurants in the food service industry. These restaurants serve a broad menu at various price points in approximately more than 100 countries around the world.

03May20171112211493827941.jpg

The company has positive returns (ROE of 31.09%, ROA of 12.36%, ROC of 29.74%) and a financial strength rated 8/10. Its price declined by 2% over the last 12 months and is now trading at a P/E (ttm) ratio of 22.60.

Since that buy, the price of the stock rose by 6%.

He sold out his stake in Delta Air Lines Inc (DAL) (an impact of 3 % on his portfolio). The company provides scheduled air transportation for passengers and cargo throughout the United States and around the world. It operates in domestic and international markets.

03May20171112211493827941.jpg

The company has positive returns (ROE of 11.04%, ROA of 2.26%, ROC of 13.60%) and a poor financial strength rated 3/10. Its price rose by 16% over the last 12 months and is now trading at a P/E (ttm) ratio of 32.10.

Since that buy, the price of the stock declined by 4%.

Also check out:
Rating:
4 / 5 (2 votes)

GuruFocus Screeners

Related Articles