A jump in the share price of an Australian mining company that hedge fund manager Jim Chanos loves to hate has earned its chairman, Andrew “Twiggy” Forrest, $440 million in two days.
Shares were up by 43 cents this week, and Forrest owns one third of the $17 billion company, according to an AAP report.
Chanos believes iron ore companies like Forrest’s Fortescue Metals Group have made a “one-way bet on one commodity”, and that emerging factors could create a “witches brew” that threaten their futures.
“The iron ore miners have made a big bet that demand is going to continue increasing meaningfully in China,” Chanos told Australia’s Fairfax Media earlier this month in an interview.
The win comes in the same week Forrest made the single biggest philanthropic donation by an Australian. He gave $65 million to the University of Western Australia.
Forrest’s stake in FMG is worth around $5.5 billion.
Paper money, yes. But still.
There’s more here.