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This is Masters in Business with Barry Rittholz on Bloomberg Radio.

This week on the podcast, what can I say? An extra special guest, Jim Chanoes of

Kinneco's associates. There are few people in the world who understand the side of the street that

he works on better than Jim. He is a famed investigator into financial fraud. He has been a short

seller for pretty much his entire career on a fundamental basis. He understands why companies

go out of business and what the signs are that investors should be looking for. He teaches a class

at Yale on financial fraud. There really is no one better to discuss the world of short selling

and fraud than Jim Chanoes. So with no further ado, my conversation with Jim Chanoes.

This is Masters in Business with Barry Rittholz on Bloomberg Radio.

My extra special guest this week is Jim Chanoes of Kinneco's associates. He is famous for exposing

a number of financial frauds, including Baldwin United. He was a critic of Drexel Burnham and he,

of course, was famously short in Ron, which eventually went bust in a firestorm of

counting fraud and problems. Jim Chanoes, welcome back to Masters in Business.

Always good to be back, Barry. Next time we do this, we'll have to do it in person, but for now,

we'll operate remotely and I won't get to see you wince when we talk about certain subjects.

But for people who may not be familiar with you, explain exactly what Kinneco's does and how you work.

Well, we're celebrating our 35th anniversary this year. So what I set up the firm in 1985

to basically provide hedge services for high net worth individuals that then morphed into

institutional investors. And basically, we construct short portfolios based on fundamentals

...