Mike Monnelly and David Bonnier — two former analysts at Jim Chanos’s Kynikos — have
started a new short hedge fundbased in London, Bloomberg’s Bei Hu reports.
Bonnier joined Kynikos in 2005. Monnelly joined in 2006.
Their new enterprise — The Arhammar Short Alpha Fund — “will invest in 30 to 50 stocks which are expected to underperform the market,” according to the report. From Bloomberg:
It will pick stocks to short using bottom-up analysis that focuses on individual companies along four themes at all time: boom-that-goes-bust, consumer fads, aggressive accounting and structurally challenged businesses, Bonnier said.
Examples of the boom-that-goes-bust theme include companies related to the subprime crisis of 2008 and the current China construction bubble, said Bonnier.
Sounds like the two learned a lot from their former boss Chanos, who has been outspokenly bearish on China for years.