This year was a better year for short sellers than last year, Jim Chanos told CNBC on Thursday. As for 2015, the renowned short seller said he's still betting against Caterpillar and has retained a small short position in IBM.
While both names were lifted in the market rally Thursday, Chanos, the founder of Kynikos Associates, isn't concerned.
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"I try not to let the price tell me what to do with a stock. I try to let the fundamentals because we can hopefully do a better job of predicting fundamentals than we can stock market prices. If we get the fundamentals right over time, over a portfolio, the stock prices will take care of themselves," he said in an interview with "Closing Bell."
In fact, he said the market has begun to bifurcate and companies that are doing financial engineering are having a tougher go of it.
While there have been a record amount of stock buybacks, "what we're looking for in financial engineering is companies that are masking bad operations by buying back stock and/or playing accounting games," Chanos said.
Caterpillar is faced with fundamentals that are deteriorating and have been for two years, Chanos noted. The company is highly exposed to the mining industry, which is a difficult area. Its two backup businesses are energy and construction. While the latter is still good, former is now going to be a drag, he said.