Jim Chanos has a new target you've never heard of, and it is all to do with China
The Kynikos Associates founder announced he was short MTN Group at the 2016 Ira Sohn conference.
Really, though, Chanos used the announcement as an opportunity to explain why he is bearish on Africa, more broadly.
It has to do with China.
Essentially, Chanos said, the mining industries in countries like Nigeria and South Africa had been heavily dependent on investments from China.
Now, he said, "that's going into a tailspin."
Nigeria, for its part, is "rapidly" running out of foreign currency reserves, Chanos said.
"If oil prices stay down ... we're going to be having a big problem in 2-3 years," he said, calling that country a "borderline failed state."
He said he was shorting MTN Group because 70% of their EBITDA comes from Nigeria and South Africa - and almost half from Nigeria alone.
He noted that some of the other countries MTN is exposed to include Uganda, Sudan, Syria, and Iran.
Chanos also confirmed his short positions in Tesla, Valeant, and Alibaba on Wednesday.