Hedge fund manager Jim Chanos spread his short-selling wrath far and wide on Monday in a speech at the Value Investing Congress in New York. The market was responding to many of his picks, including a negative call on the for-profit education industry.
Chanos called the for-profit education sector “a national shame.”
“I cant think of a more predatory business,” he said, singling out ITT Educational Services (ESI) as a particularly egregious offender. ITT’s shares fell 5% in afternoon trading.
Graduates, including many soldiers, are walking around with worthless degrees and tons of debt, he said. Regulatory pressure could grow and investors are wrong to think that Republicans in Congress will protect the industry, Chanos said.
Apollo Group (APOL) fell 3.4% and other companies in the sector were also down after his talk.
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