Betting Against The Education Industrial Complex

Bloombeg has this.

FlowPoint Capital Partners, the $15 million hedge fund co-founded by Charles Trafton, is betting against companies such as student-loan servicer Navient Corp. to profit from what it calls a college bubble bursting in slow motion.

The Boston-based firm is building positions against stocks of textbook publishers, student lenders and real estate companies that focus on college housing, Trafton said in an interview. Changes in the more than $1 trillion student loan market could hurt companies such as Navient, Sallie Mae and Nelnet Inc., according to a July investor letter from the firm.

Businesses “levered to runaway inflation in post-secondary education are susceptible to growth and margin shocks,” the firm wrote in the letter.

H/T this Zero Hedge article, which has some very nice charts.

I became an aerospace engineer sans degree. For the motivated college is unnecessary. And for the unmotivated college is unnecessary.


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8 responses to “Betting Against The Education Industrial Complex”

  1. Man Mountain Molehill Avatar
    Man Mountain Molehill

    How do you get your resume past the idiot bimbos in the personnel office who are too stupid and illiterate to do anything more than search for a college name on it?

  2. Simon Avatar

    Contract. If you can’t perform they can fire you ASAP.

    Job “protection” has ruined the job market.

  3. captain*arizona Avatar
    captain*arizona

    next they will be betting you won’t live for ever and take out life insurance polices like walmart does with its truck drivers that they over work.

  4. Man Mountain Molehill Avatar
    Man Mountain Molehill

    Ph.D. from the Institute of Inelastic Collisions.

  5. Man Mountain Molehill Avatar
    Man Mountain Molehill

    How do you get through to the people in a position hire you as a contractor?

  6. Simon Avatar

    MMM,

    Contractors are mostly hired by projects. HR has very little input.

    The whole thing is about building your resume.

    And HR is more relaxed because contractors are not a commitment.

  7. Kathy Kinsley Avatar
    Kathy Kinsley

    Thing is if you do have a degree (in anything – even if not related), then HR decides you may be overqualified and won’t hire your for that reason.

    I, too, have found contract to be the way to go.

  8. Man Mountain Molehill Avatar
    Man Mountain Molehill

    How do you find contacts? Cold call? Networking? Other? Does “contract” have an industry-specific meaning for aerospace? I’ve seen government managed lists of contracts out for bid, but there isn’t much of that in my industry.