Long positions from a short seller

Hedge fund manager Jim Chanos reveals some of his holdings in a regulatory filing.

By GuruFocus.com Aug 16, 2012 12:13PM
Famed short seller Jim Chanos just reported his long positions. He is not required to report his short positions, but the ones he holds as longs are at least not shorted by him. Compared with the previous quarter, Chanos has almost doubled his long positions.

As of June 30, Chanos' hedge fund, Kynikos Associates, owns 22 long stocks with a total value of $257 million. He is said to manage more than $6 billion.

Chanos has been called the Warren Buffett of short selling. He looks at a combination of the macro picture and the business itself in his short thesis. His latest shorts include CONSOL energy (CNX), Petrobras (PBR), Hewlett-Packard (HPQ), Coinstar (CSTR) and Banco Santander (STD) -- many of which are considered value by other value investors.

In his portfolio, Chanos owns a lot of index exchange-traded funds (ETFs), such as SPDR S&P 500 (SPY) and SPDR S&P MidCap 400 (MDY). He also owns Ishares Russell 2000 Index (IWM) and Ishares MSCI Emerging Markets Index (EEM). He sold Ishares MSCI EAFE Small Cap ETF (SCZ) and SPDR S&P Emerging Markets Small Cap (EWX). His largest sell during the second quarter was BP (BP).

Here are the sector weightings of his portfolio:
Financials 18.8%
Consumer Services 16.8%
Technology 15.4%
Industrials 11.3%
Consumer Goods 5.7%
Oil & Gas 4.4%


The top five holdings of Jim Chanos:
  1. SPDR S&P 500 ETF (SPY) - 165,900 shares, 8.8% of the total portfolio. Shares added by 320%
  2. SPDR S&P MidCap 400 ETF (MDY) - 116,900 shares, 7.8% of the total portfolio. Shares added by 181.01%
  3. Deere & Company (DE) - 223,850 shares, 7% of the total portfolio. Shares added by 264.87%
  4. Visteon Corporation (VC) - 392,400 shares, 5.7% of the total portfolio. Shares added by 219.54%
  5. Whole Foods Market (WFM) - 135,600 shares, 5% of the total portfolio. New Position


New Purchase: Whole Foods Market
Chanos initiated holdings in Whole Foods Market. His purchase prices were between $81.56 and $96.63, with an estimated average price of $87.69. The impact to his portfolio from this purchase was 5%. His holdings were 135,600 shares as of June 30. Whole Foods has a market cap of $17.25 billion; its shares were traded at around $94.45 with a price-to-earnings ratio of 40.2 and price-to-sales ratio of 1.7. Its dividend yield is 0.6%. Whole Foods had an annual average earnings growth of 11.2% over the past 10 years. GuruFocus assigned Whole Foods the business predictability rank of 3-stars.

New Purchase: Chicago Bridge & Iron
Chanos initiated holdings in Chicago Bridge & Iron Co. (CBI). His purchase prices were between $33.62 and $45.29, with an estimated average price of $39.55. The impact to his portfolio from this purchase was 4.3%. His holdings were 293,800 shares as of June 30. Chicago Bridge & Iron designs, builds, repairs and modifies steel tanks and other steel plate structures and associated systems. The company has a market cap of $3.6 billion; its shares were traded at around $37.32 with a price-to-earnings ratio of 13.5 and price-to-sales ratio of 0.8. The dividend yield is 0.5%. Chicago Bridge & Iron had an annual average earnings growth of 16.4% over the past 10 years.

New Purchase: Oracle Corporation
Chanos initiated holdings in Oracle (ORCL). His purchase prices were between $25.75 and $29.68, with an estimated average price of $27.83. The impact to his portfolio from this purchase was 2.9%. His holdings were 250,000 shares as of June 30. Oracle is one of the world's suppliers of software for information management. The company has a market cap of $154.38 billion; its shares were traded at around $31.5715 with a price-to-earnings ratio of 13.5 and price-to-sales ratio of 4.2. The dividend yield of Oracle stocks is 0.8%. Oracle Corporation had an annual average earnings growth of 18.1% over the past 10 years. GuruFocus assigned Oracle Corporation the business predictability rank of 5-star.

New Purchase: Microsoft Corporation
Chanos initiated holdings in Microsoft (MSFT). His purchase prices were between $28.57 and $32.4, with an estimated average price of $30.45. The impact to his portfolio from this purchase was 2.7%. His holdings were 229,500 shares as of June 30. Microsoft develops, manufactures, licenses, and supports a wide range of software products for a multitude of computing devices. Microsoft has a market cap of $255.57 billion; its shares were traded at around $30.24 with a price-to-earnings ratio of 10.9 and price-to-sales ratio of 3.5. The dividend yield of Microsoft stocks is 2.6%. The company had an annual average earnings growth of 13.6% over the past 10 years. GuruFocus assigned Microsoft  the business predictability rank of 5-star. (Microsoft owns and publishes Top Stocks, an MSN Money site.)

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