As Brazilian Stocks Tank, Chanos Covers Shorts

Fabled hedge fund short seller Jim Chanos saw blood on the street in Brazil before the news hit the mainstream. Then as Brazil was in the process of being declared a financial mess two months ago, Chanos eyed his many short investments in the country and laughed all the way to the bank when the country’s stock market went on a two month slide, down near 20 percent.

News two days ago of left-leaning Brazilian president Dilma Rousseff election victory, putting him back in power, might have put the icing on the cake, as the leftist's victory was greeted with another quick sell-off in stocks.

Chanos says reality of Rousseff in power may not be as scary

Chanos, however, might be thinking the...