The Jim Grant Series: Jim Chanos

Featuring Jim Chanos

Jim Grant, the editor of Grant’s Interest Rate Observer, sits down with famed fund manager and master short seller Jim Chanos of Kynikos Associates. They discuss the philosophy of shorting stocks, the best way to perform research, and the preferred methods for managing risk within a portfolio. They also discuss Mr. Chanos’s successful shorts on Enron, Valeant and others – as well as his current bets against Tesla and China. Filmed January 24th, 2018 in New York.

Published on
2 February, 2018
Topic
Investment Framework, China, Career
Duration
55 minutes
Asset class
Equities
Rating
40

Comments

  • PD

    Pat D.

    24 6 2018 06:17

    0       0

    Jim Grant has a particular skill while interviewing. Sometimes it may seem that he is interrupting the interviewee, but I believe it's his inherent skill in pulling it back to him (and his agenda); and the way he directs the interview (along with his wonderful humour) makes it look effortless and all too easy.
    Imagine what it would be like to have a 60 minute feature (topic??) with Jim Grant, Michael Green, and Grant Williams.

  • RS

    Ronan S.

    7 6 2018 19:25

    0       0

    What a great interview. The two Jims are always great to listen and learn from.
    With regards to China, does it not make sense to look at the amount of debt per company?
    in this case China has less debt per company when compared to the US by a fair amount. I could also look at this and say that a large portion of the companies in China are only in existence due to their debt driven business model and that a large shock to the system would bring down the number of companies in China to a level that would show debt per company far higher than that of the US. Just wondering if this is a stupid metric to look at that it still does not justify c.400% debt to GDP.

    Thanks!

  • KM

    Kevin M.

    6 6 2018 04:23

    0       0

    Really wish I could listen to this, but after downloading the audio, the first 3 or 4 minutes keeps repeating in a loop.....

  • BP

    Besar P.

    18 2 2018 04:26

    1       0

    Tough guy, in a tough business to be in, dominated by fiat currency. He is not just a hedge, but serves as checks & balance function for the market, that sadly all indexers get a free ride on.

  • PW

    Peter W.

    16 2 2018 03:32

    0       0

    just fantastic ....great to learn from a master

  • EO

    Eanna O.

    9 2 2018 21:29

    3       0

    Any plans to make it possible to download the video to mobile device for offline viewing? This feature is now available on Netflix and would be super handy. Thx

  • DD

    Daniel D.

    9 2 2018 19:34

    1       0

    Great interview! So much value. The onion analogy towards the end is good old fashioned Midwest wisdom. Unfortunately, most are too lazy to read boring 10-Ks and 10-Qs let alone footnotes when offered slick research reports from "name" wall street firms. Thank you Jim & Jim.

  • GS

    George S.

    8 2 2018 18:10

    1       0

    This is gold!!!

  • LA

    Linda A.

    6 2 2018 18:14

    1       0

    One of the best short sellers ever! What I love about Chanos is that he sees thru the BS & does his own thinking. He is the revealer of truth.

  • MC

    M C.

    6 2 2018 00:41

    0       0

    Terrific interview. Short sellers have some intestinal fortitude

  • VS

    Victor S.

    5 2 2018 17:48

    0       0

    I believe Jim C would add to his performance substantially, by hiring 3 technicians (who should not be to expensive these days), and when all 3 agree the top as arrived ,execute your shorts. Two cents from a man who has made a living doing this. Great interview .Thanks for the interesting comments.

  • AB

    Andrew B.

    5 2 2018 09:42

    1       0

    Oh boy, that was good. Yeah heard some of it before but nice long form context.

  • CM

    Charlie M.

    5 2 2018 05:38

    0       0

    Enjoyed this interview a lot, really interesting hearing a short seller's perspective. After Jim Chanos mentioned avoiding "confirmation bias", I hoping, hoping, hoping! Jim Grant was going ask the follow up question - How do you avoid confirmation bias?!! Inquiring minds want to know!! :)

  • us

    ujjwal s.

    5 2 2018 01:39

    1       0

    Good Stuff, Wish I can afford Jim's subscription. :)

  • DK

    Dylan K.

    4 2 2018 22:43

    1       0

    Interesting view on blockchain that I haven't heard before.

  • JW

    James W.

    4 2 2018 08:27

    1       0

    All long since covered in prior interviews with Chanos is the public domain. Great interview on Wealth Track this weekend on bind strategies for a rising rate environment with two great analysts.

  • LC

    Liliana C.

    4 2 2018 06:20

    1       0

    Love Jim and Chanos and learned was fascinated by how Chanos thinks . Noted the differences between him and Marc Cohodes in their approach to Tesla. 👍

  • EF

    Eric F.

    4 2 2018 04:22

    8       0

    Fantastic interview, totally won over by Jim Grant. Really hope a second series gets commissioned. Only comment I would have is I would love to have heard a bit more opinion on where JC thinks this goes, i.e. a bit more forward commentary. Would also love to have heard current thinking on Tesla in a bit more detail. Also, I could easily listen to 90 minutes of this. I know that’ll go counter to my previous feedback, but the Friday pieces are proving to be top notch. Lastly, I do wonder if RV could incorporate some subscriber questions into the mix. Could prove really engaging and useful on a number of levels. I’d love to know what others are thinking and upvote / downvotes could filter for the RV crowd. Just a thought.

    • RM

      Richard M.

      4 2 2018 15:51

      2       0

      Eric, I like your idea on incorporating subscriber questions into the interviews (when appropriate). I was just reading Mauldin's weekly letter and he mentioned this item regarding his upcoming SIC conference:

      "Further, we use software now that allows attendees to ask questions and for people to vote on those questions that they want moved to the top of the questions queue. It works amazingly well, and the attendees do get their most important questions answered."

      I like that idea, users ask questions and then the rest of the users get the rate/rank the questions so that only the top 5 or 10 (i.e., the "best") questions get asked of the guests. It's a great idea!!! ***RVTV/Milty - take note.*** :-)

  • OM

    Omar M.

    3 2 2018 23:39

    0       0

    Terrific interview 👌👍

  • PD

    Peter D.

    3 2 2018 16:45

    2       0

    This was a great interview, as always with Mr. Grant.

    However Chanos appears to say his fund's average position is 2% and the max he will hold is 5%.

    This suggests that his people are tracking at least 50 positions, and that the results (as John Bogle suggests in such cases) are nothing more than a crap shoot.

    Identifying an Enron, or an overleveraged China is great.
    But it would not necessarily enable you to outperform if you only take a 2% position.

    Nor (as past performance is no guarantee of future results) is it clear how you'd be better off in future years holding Mr. Chanos's funds than if you buy the index, and protect it with 40% worth of some sort of put.

    • FC

      Fractal C.

      3 2 2018 20:32

      1       0

      My thoughts exactly.

    • EF

      Eric F.

      4 2 2018 04:08

      2       0

      I understand the point made here but position sizing is crucial and oversizing on the wrong ‘bet’ could be disastrous. My understanding is that it takes lots of small bets with asymmetric pay-offs and the proper research and due diligence. That can provide outsized returns, over time.

    • DC

      D C.

      6 2 2018 20:25

      1       0

      And don't forget, those 50 positions would likely have similar characteristics or factors, so I suspect it's more like a Value fund, or momentum fund, or whatever factor fund, but diversified with individual names. Which is quite different from a complete "random" 50 stock portfolio.

  • GB

    Grant B.

    3 2 2018 11:31

    2       0

    Great value add. That's why I subscribe to Real Vision. Tx.

  • JV

    Jason V.

    3 2 2018 10:18

    6       0

    Brilliant and wise and wonderful. Thank you to Jim and Jim for your erudition and generosity.

  • T~

    Tshort63 ~.

    3 2 2018 07:07

    3       0

    This was just outright fun, Jim Grant has some great friends. Oh, and they seem to know a thing or two about money as well.

  • SP

    Simon P.

    3 2 2018 06:36

    2       0

    This interview only, by itself, is worth annual admission. WhoeverTF junked this was too much toking/joking.
    The confirmation of how painful the right at the wrong time position can be, even for the most savvy, is gold.
    Agreed, potential top all time.

  • AG

    Alex G.

    3 2 2018 05:46

    4       0

    Top all time interview contender

  • HF

    Hassan F.

    3 2 2018 03:41

    4       0

    This is top quality stuff. Kudos to RVTV for getting this series together. I am so glad that RV is again outdo themselves in producing quality content.

  • TR

    Thomas R.

    3 2 2018 01:10

    11       0

    I can't believe how much I appreciate Real Vision. This Friday Jim Grant Series is nothing short of spectacular!

    • EF

      Eric F.

      4 2 2018 04:09

      0       1

      Well said.

  • JV

    James V.

    3 2 2018 00:16

    12       0

    Loved the interview! Jim Grant's sense of humor is as dry as the desert and is perfectly matched with Jim Chanos's warm congeniality. And each with an IQ equivalent to Apple's share price!

    At Jim Grant's bi-annual investment conferences, he often chides his more macro-focused speakers to throw a bone of at least one specific investment idea to the audience. I suppose we got a nibble in this interview with the China residential housing theme, but it would have been nice to hear Jim Chanos lay out one really good, current short, and more important, his thinking/research process behind it starting with the core of the onion.

    • DC

      D C.

      6 2 2018 21:33

      1       0

      Yeah, this was a good investing philosophy themed interview, but kinda fluffy.

  • TB

    Tad B.

    3 2 2018 00:12

    4       0

    I like this series... wasn't sure at first, but they add a different and welcome colour to the RVTV palette. More of these please.

  • ss

    sid s.

    2 2 2018 23:36

    6       6

    where is Michael Green ? how about another interview with Luke Gromen for geo- economic/politics master class !?

  • GG

    Glenn G.

    2 2 2018 23:15

    11       0

    I think the hidden gold came in the last 2 minutes with the discussion of the layers of the onion and working your way out instead of the way in and through all the influences of mainstream media. I think a lot of people would look at that "California electric car company" differently if they took the time. Investment research seems to be a lost art and as Jim suggests that is where the contrarian opinions are born instead of joining the rest of the heard. I have always been a big fan of his for his humble yet very intelligent demeanor. Great interview!

  • AS

    Arthur S.

    2 2 2018 21:32

    13       0

    Excellent. Jim Grant does a very good job and Chanos is measured, but subtly revealing. This series and Jim Grant's guests are a winner.....

  • AS

    Arthur S.

    2 2 2018 21:32

    4       0

    Excellent. Jim Grant does a very good job and Chanos is measured, but subtly revealing. This series and Jim Grant's guests are a winner.....

  • AA

    Andrew A.

    2 2 2018 20:57

    5       0

    Really useful - would like another hour!

  • ss

    sid s.

    2 2 2018 19:30

    2       80

    This Jim Grant guy is painfully boring.

    • EF

      Eric F.

      3 2 2018 00:24

      3       0

      Sid, look at the ratings on the comment mate. Jim is far from boring.

    • RO

      Robert O.

      3 2 2018 03:30

      10       0

      Did you bet someone that you could win the "Hotly Debated" title?

    • T~

      Tshort63 ~.

      3 2 2018 07:09

      4       0

      sid, don't look now but your troll is showing.

    • MV

      Mike V.

      3 2 2018 16:01

      5       0

      Sid is probably the type of guy who more enjoys the “excitement” of Jim Cramer’s coterie of buttons, bells, and whistles sprinkled with his hot tips to “buy, buy, buy!”

    • PD

      Peter D.

      3 2 2018 16:34

      2       0

      I gave Sid the "Thumbs up" - I actually laughed when I read the comment.

    • WM

      William M.

      3 2 2018 20:14

      1       0

      Peter D. it could have been a clear sweep!

    • ss

      sid s.

      4 2 2018 20:10

      2       2

      I 've been short this market for last two years. fair to say We - RVTV- subscribers all been dead wrong..

    • BO

      Bob O.

      7 2 2018 01:30

      0       0

      Welcome to Sid's fishing, bait and tackle store..........IPO coming soon. :)

  • KB

    K B.

    2 2 2018 18:57

    8       0

    This interview should have been much longer, Chanos and Jim are great

  • rr

    rlw r.

    2 2 2018 17:52

    10       0

    Brilliant - Jim's questions with Jim's answers, both so lucid.
    Then add in the constant wit and cleverness.
    Soon enough it's serious high value fun.

  • KB

    Kreso B.

    2 2 2018 17:47

    1       4

    Discussion of Overstock and 3rd party guarantor is b****cks.

    • AC

      Andrew C.

      5 2 2018 10:11

      0       0

      "please explain"

  • MG

    Mohamed G.

    2 2 2018 17:38

    8       0

    Yes Jim Grant. Now that sir is a quality well balanced interview. Well done and thank you both.

  • ZB

    Zikmund B.

    2 2 2018 17:18

    2       31

    What a wasted opportunity. It was an interview for a weekend magazine, not financial TV. Fire Jim!

    • EF

      Eric F.

      4 2 2018 04:11

      0       1

      You have got to be kidding!

    • AC

      Andrew C.

      5 2 2018 10:11

      0       0

      "please explain"

  • PB

    Pieter B.

    2 2 2018 16:50

    2       0

    Excellent conversation! Thanks a lot!

  • JG

    Jory G.

    2 2 2018 16:27

    7       0

    I really, really enjoy this series. Scary for a rookie sometimes but most informative.

  • AT

    Andre T.

    2 2 2018 15:29

    1       0

    Fantastic interview! Interesting learning about the Chanos process to short selling.

  • RM

    Richard M.

    2 2 2018 15:12

    15       0

    Just fantastic! I am really enjoying this Jim Grant series, it was a superb idea and its implementation is just great! Again, just another example of how RVTV has broken the mold and has brought forth ground breaking content. It almost brings to mind the very early days of RVTV when you had the hour long Master Classes with Mark Hart, Kyle Bass, etc., that just blew everybody away as we had never experienced anything like that before. I cannot tell you how valuable this education has been for me. And I cannot thank you enough, other than to say - thank you!

  • RR

    Raj R.

    2 2 2018 14:54

    1       0

    Let me guess, jim talks about Tesla in this video. Havent watched it yet :)

    • EF

      Eric F.

      4 2 2018 04:13

      0       0

      Actually, not much, and to tell you the truth I wouldn’t have minded hearing his thoughts at all. Maybe a touchy one considering his sell price at half current price!

  • TJ

    Terry J.

    2 2 2018 12:43

    2       0

    Highly informative, educational and thought provoking. Another priceless market discussion.

  • js

    jacob s.

    2 2 2018 11:28

    5       0

    "Yeah you care." LOL

  • PU

    Peter U.

    2 2 2018 10:24

    5       6

    I just need to read the names and give this a thumbs up! Haven't even viewed it yet. If you know the players you know we have quality video.