Two Of Jim Chanos' Prodigies Are Starting Their Own Short Hedge Fund

Mike Monnelly and David Bonnier - two former analysts at Jim Chanos's Kynikos - have started a new short hedge fund based in London, Bloomberg's Bei Hu reports.

The two worked for Kynikos as researchers when it famously shorted Enron before the energy giant collapsed in 2001.

Their new enterprise - The Arhammar Short Alpha Fund - "will invest in 30 to 50 stocks which are expected to underperform the market," according to the report. From Bloomberg:

It will pick stocks to short using bottom-up analysis that focuses on individual companies along four themes at all time: boom-that-goes-bust, consumer fads, aggressive accounting and structurally challenged businesses, Bonnier said.

Examples of the boom-that-goes-bust theme include companies related to the subprime crisis of 2008 and the current China construction bubble, said Bonnier.

Sound like the two learned a lot from their former boss Chanos, who has been outspokenly bearish on China for years.

Read the full report at Bloomberg »