At last week’s annual Ira Sohn Research Conference, Greenlight Capital’s David Einhorn called AAA bond ratings “a curse” and announced that he had established a short position in ratings agency Moody’s Corporation (MCO). According to an article from MarketWatch, Mr. Einhorn elucidated his position by saying that the AAA ratings encouraged bodies such as the U.S. government and AIG to borrow recklessly. He also believes that the smartest investors ignore a company’s credit rating.
Mr. Einhorn spoke alongside Bill Ackman of Pershing Capital Management and Jim Chanos of Kynikos Associates, among others. Mr. Chanos spoke about the danger of excessive government involvement in the healthcare and education industries, saying that the involvement won’t allow enough profit. His firm has set up a short position in Lincare Holdings (LNCR).
Mr. Ackman discussed his firm’s debt and equity investments in bankrupt General Growth Properties (GGWPQ). He reaffirmed his belief that once the mall owner has been re-organized that it will have more assets than liabilities. |
