Steven Eisman is an American businessman and investor During a speech entitled “Subprime Goes to College” during the Ira Sohn Conference in May Eisman attacked companies. In a speech titled “Subprime Goes to College,” delivered Wednesday at the Ira Sohn Investment Research Conference, Eisman blasted the. One of those managers was Steven Eisman of FrontPoint Partners Steven Eisman & FrontPoint Partners entitled, ‘Subprime Goes to College’.

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The inmates run the asylum. The industry has gotten hysterical over this rule because it knows that to comply, it will probably have to reduce tuition. David Stemerman’s hedge fund Conatus Capital had been long and sold out of their education plays.

There is no regard to whether a student really belongs in school, the goal is to enroll as many as possible. You may be familiar with him as he was profiled as one of the successful subprime traders in Michael Lewis’ book, The Big Short. There is a traditional relationship between matching means and cost in education. In other words, she was directly in charge of regulating the industry she had previously lobbied for. Inshe was the head lobbyist for the Apollo Group — the company behind the University of Phoenix and the largest for-profit educator.

A student prepares for an online quiz at home for the Universtity of Phoenix. Let me quote a bit from a former employee of Bridgepoint Education, operators of Ashford University:. Eisman grew up in New York City, where he attended Yeshiva schools. Post was not sent – check your email addresses! His general thesis focuses on two factors: Major for-profit educators include.

He attended the University of Pennsylvaniagraduating magna cum laude in On the date of purchase, Franciscan now Ashford had students.


Use this information at your own risk. Here is one of the more upsetting statistics.

Steve Eisman’s Epic Takedown of the For-Profit Education Industry

One example is Sally Stroup. So what is the government going to do? He has been married to Valerie Feigen since He notes that a key to the problem here is the ‘rating’ these institutions receive from accreditation boards and he likens these colllege to the ratings agencies who blessed subprime mortgages.

That said, we’ve also noted that some of these managers have had a recent change of heart.

After offering testimony to Senate Health, Education and Labor Committee on problems with for-profit higher education, Eisman was criticized by progressive groups such as Citizens for Responsibility and Ethics in Washington on the grounds that he stood to profit elsman proposed regulations due to his short positions against private colleges. The for-profit industry has grown at an extreme and unusual rate, driven by easy access to government sponsored debt in the form of Title IV student loans, where the credit is guaranteed by the government.

As we’ve detailed numerous times, the for-profit education space is an investor battleground with a clear divergence of opinion. And here is where the subprime analogy becomes very clear.

The rest went to marketing and paying executives. By lateit was clear to me and my partners that the mortgage industry had lost its mind and a society-wide calamity was going to occur.

While he has since scaled back his position some, we saw he still owned it when we detailed Lone Pine’s portfolio. Shireman was in charge of the department’s efforts to toughen regulations on for-profit colleges.

Investor Steve Eisman RAILS On For-Profit Colleges

With billboards lining sjbprime poorest neighborhoods in America and recruiters trolling casinos and homeless shelters and I mean that literallythe for-profits have become increasingly adept at pitching the dream of a better life and higher earnings to the most vulnerable of society. Retrieved from ” https: In the past 10 years, the for-profit education industry has grown times the historical rate of traditional post secondary education. They also go after GI Bill money and currently have colkege teams set up to specifically target military students.


The fund performed poorly inreturning 3.

If nothing is done, then we are on the cusp of a new social disaster. Who could you complain to? The University of Phoenix Subprume.

Steve Eisman & FrontPoint Partners Ira Sohn Presentation: Subprime Goes to College ~ market folly

Eisman is a strong opponent of for-profit institutions of higher education. Eisman thinks he has identified the next ‘subprime’ so to speak and gave colleege presentation at the Ira Sohn Conference entitled, “Subprime Goes to College. Earlier we aggregated a compilation of notes from the Ira Sohn Investment Conference where some very prominent hedge fund managers detailed investment ideas. The scandal gkes is exactly akin to the rating agency role in subprime securitizations.

If a person has money available for school Ashford finds a way to go after them. Upon nearing completion, the students learned that not only would their credits not transfer to any community or four-year college, but also that their degree is not recognized by the American Association for Medical Assistants.

Subprime Goes to College. The group, run by subprume including Steve’s parents, Elliott and Lillian Eisman, manages portfolios of stocks for wealthy clients. Stephen Mandel’s hedge fund Lone Pine Capital has been bullish on education plays. Retrieved 20 November