“Chanos thinks pattern recognition is important and
something that simply takes experience, which is one reason why he tasks the
firm’s partners with originating the ideas. The partners have extensive
experience in seeing patterns in odd-looking financial or press statements, for
example. Through their mosaic of experience and wisdom, they are in the
strongest position to decide what strategies to explore and not get distracted
by the markets’ daily vagaries. Once a partner identifies an idea to pursue,
the analysts process the idea, compiling the research to validate or disprove
the thesis.”
