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Hedge fund manager Chanos says art market frothy, shorting Sotheby's

Published 19/11/2014, 17:51
© Reuters. A model wears the "Graff Ruby" and a natural pearl and diamond  necklace during an auction preview Sotheby's auction house in Geneva
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LONDON (Reuters) - Hedge fund Kynikos Associates founder James Chanos said the art market is frothy and he is currently shorting Sotheby's (N:BID), a global auctioneer of art and jewellery.

"I am not here to bury the art market, I am an art collector myself," the short-seller, who is better known for his bearish bets on China, said at the Sohn Investment Conference in London on Wednesday.

"But I do think that there are inherent risks in this sort of cyclical business," he added.

© Reuters. A model wears the "Graff Ruby" and a natural pearl and diamond  necklace during an auction preview Sotheby's auction house in Geneva

Chanos, the founder of Kynikos, managed about $4 billion at the end of Feb. 2014, according to a filing with the Securities and Exchange Commission.

(Reporting by Simon Jessop and Nishant Kumar; editing by Susan Thomas)

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