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wall st betting against healtcare.gov
12-05-2013, 05:43 PM #1
j browsing Member
Posts:4,837 Threads:1,097 Joined:Jul 2012
One Obama campaign fundraiser is leading the Wall Street bet against the president’s lead HealthCare.gov contractor in light of the website’s disastrous debut.

James Chanos infamously made his fortune short-selling Enron stock at its peak — right before the energy firm’s value crashed amid scandal in 2004, taking the company with it.

Chanos — who convinced his considerable network of Wall Street associates to donate at least $200,000 to Obama’s campaign — just made a new bet against CGI Group, the parent company of CGI Federal, which was commissioned to build HealthCare.gov.

Newsweek reports that Chanos’s $6 billion hedge fund company Kynikos Associates (which means cynic in Greek) has placed CGI on its “largest short positions” list, meaning Chanos is trading on the assumption that the $11 billion value in CGI shares are about to plummet.

Chanos wrote in a 10-page memo to clients that “the PR mess” created in the fallout of the website’s failed launch would “reduce the likelihood of future government contracts” for CGI.

The company has enjoyed rising investor interest and confidence over the last five years, in large part from scoring the lead contract for the website of the president’s signature legislation.

Read more: http://dailycaller.com/2013/12/04/obama-...z2mbzFm48x

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