privateequityoncrack.jpgJim Chanos, the legendary hedge fund manager who shorted Enron when the company was flying high, is predicting a “huge spike in defaults” of leveraged loans, according to Reuters.

“I don’t know what crack pipes these guys were smoking, but some of the valuations were absolute madness,” said Chanos, speaking to hundreds of investors, referring to private equity firms and their portfolio companies.

Short-seller Chanos sees raft of new opportunities [Reuters]

Comments (6)

  1. Posted by 36th Chamber | February 8, 2008 at 4:26 PM

    The progression goes investment banking –> private equity –> hedge fund and marijuana –> crack –> ?

  2. Posted by AJ | February 8, 2008 at 4:33 PM

    Please, we’re classy here, coke only

  3. Posted by Anonymous | February 8, 2008 at 4:40 PM

    Methanphetamines for me, please

  4. Posted by Anonymous | February 8, 2008 at 4:47 PM

    Fox BN just covered “Boy toys and Sugar mamas” event which apparently took place last night.
    Any news on that from DB?

  5. Posted by 36th Chamber | February 8, 2008 at 6:25 PM

    A certain exec over at Bear would reply to your comment AJ, but he’s too busy smoking joints in the bathroom.

  6. Posted by Anonymous | February 8, 2008 at 8:07 PM

    Not something you’d ever expect to hear from a career short-seller…

Leave a comment

You can log in with your account or comment as a guest below.