Chanos Shorts For-Profit Education Stocks, Cites Graduates’ Pay

Jim Chanos, the hedge-fund manager who made money betting against Enron Corp., said students of for-profit education companies earn too little and owe too much money after they graduate, reasons he’s bearish on the industry.

“We’ve been shorting them for a couple of years, we just think this is a flawed business,” said Chanos, the founder of Kynikos Associates, in an interview with Bloomberg Television. “It is a real abuse of the federal taxpayers’ largesse that these companies derive 80 percent from loans paid by us.”