Jim Chanos Shorting Oil Companies and Ford (F)

Hedge fund manager, Jim Chanos said that he is shorting shares of large oil investment companies and automotive company Ford Motors (NYSE: F), according to a report from Bloomberg on Thursday.

Chanos, who made money betting against Enron Corp, declined to identify which energy companies that his company, Kynikos Associates Ltd. is taking a bearish stance against. He did however say that his position predates the April 20 explosion of a BP PLC (NYSE: BP) oil rig that has threatened to destroy the ecosystem in the Gulf of Mexico.

"If you look at their cash-flow statements relative to their income statements, you will see companies that haven’t replaced reserves in years, and haven’t seen any increase in revenues in years," he said. "They're borrowing their dividend. They’re in effect liquidating."

Chanos did say that he has not bet against BP amid the controversy surrounding the London-based oil company.

"We haven'’t played BP in any way, shape or form -- short or long," he said. "We have looked at BP, but, like a lot of others, we're scratching our heads. I think there's too many unknowables still."

Chanos added that he believes that Ford Motor Co. (NYSE: F) will have a hard time competing against General Motors Co., as the United Auto Workers may favor GM and even Chrysler Group LLC over Ford in upcoming labor contract negotiations.

"It's going to be very interesting to see how it is that the union, which controls the employees -- and I contend these entities are still run for their employees and retirees more than the shareholders -- are going to look in an environment going forward, where the UAW is a major equity holder in some of the other entities," the investor said. "It adds a new dynamic to the twist."

Chanos is taking a short position on Ford at this time.



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