Billionaire Jim Chanos’ Top 5 Stock Picks

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1. SPDR S&P 500 ETF Trust (SPY)

Chanos’ biggest position in its 13F portfolio is the S&P 500 Index fund (SPY). SPY strives to achieve successful investment results that correlate to the yield performance and price of the Standard & Poor’s 500 Index. According to SPDR, “The S&P 500® Index is composed of five hundred (500) selected stocks, all of which are listed on national stock exchanges and spans over approximately 24 separate industry groups.”.

The Trust is primarily composed of famous big-cap companies, with the Information Technology as its top 1 sector, which is composed of Apple Inc. (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Facebook (NASDAQ: FB), and Tesla (NASDAQ: TSLA) as its Top 5 holdings. 

This tells us that Chanos is indeed getting most of his outperformance by shorting stocks and reinvesting the short sale proceeds into relatively lower volatility S&P 500 ETFs like SPY and IVV. We wonder why he doesn’t try to pick long positions as it is easier to find good long stocks than good short stocks. Insider Monkey’s monthly newsletter shares a list of 15-20 stock picks since March 2017 and our stock picks outperformed the S&P 500 Index ETF (SPY) by 88 percentage points. You can download a sample issue of our monthly newsletter here

Please also see 10 Best Stocks To Buy For 2021 According To Stan Druckenmiller and 15 Best Dividend Stocks With Upside Potential.

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