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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Steve Eisman

It did better inreturning There is a traditional relationship between matching means and cost in education. Who could you complain to?

The rest went to subprim and paying executives. A student prepares for an online quiz at home for the Universtity of Phoenix. Until recently, I thought that there would never again be an opportunity to be involved with an industry as socially destructive and morally bankrupt as the subprime mortgage industry. Stephen Mandel’s hedge fund Lone Pine Capital has been bullish on education plays.

Here is one of the more upsetting statistics. This formula maximizes the amount of Title IV loans and grants that these students receive. But accreditation bodies are non-governmental, non-profit peer-reviewing groups. In the past 10 years, the for-profit education industry has grown times the historical rate of traditional post secondary education. News Corp HarperCollins Eieman realtor. And here is where the subprime analogy becomes very clear.

But when the Bush administration took over, the DOE gutted many of the rules that governed the conduct of this industry. Eisman is a strong opponent of for-profit institutions of higher education.

He attended the University of Pennsylvaniagraduating magna cum laude in Retrieved February 12, The scandal here is exactly akin to the rating agency role in subprime securitizations. Post was not sent – check your email addresses!


With billboards lining the poorest neighborhoods in America and foes 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. He was busy making speeches that every American should take out an ARM mortgage loan.

There has been a revolving door between the people who work for this industry and the halls of government. The allegations stem from a meeting that Eisman had with Department of Education officials David Bergeron and Robert Shireman, two weeks before delivering his speech eixman the Ira Sohn Conference.

Follow Us On Twitter Tweets by marketfolly. Investment Ideas From H Read Next Fulsome prison blues. Ira Sohn Conference Notes: Tracking top hedge funds since Eismxn would force universities to lower their tuition, or face declining enrollment because fewer students could afford school. Once the floodgates were opened, the industry embarked on 10 years of unrestricted massive growth.

They conveniently price tuition at the exact amount that a student can qualify for in federal loan money. How do such schools stay in business?

Posted by market folly at David Stemerman’s hedge fund Conatus Capital had been long and sold out of their education plays. 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.

Steve Eisman – Wikipedia

If nothing is done, then we are on the cusp of a new social disaster. You can download a. Washington clamping down on the industry and a rise in employment generating a decline in enrollment. View author archive Get author RSS feed.


This page was last edited on 31 Decemberat Let me quote a bit from a former employee of Bridgepoint Education, operators of Ashford University:. The for-profit education industry has proven equal to the task. You may be familiar with him as he was profiled as one of the successful subprime traders in Michael Lewis’ book, The Big Short.

Retrieved 12 February The eksman performed poorly inreturning 3. Additionally, there are also numerous high profile detractors such as Jim Chanos who gave a negative presentation on for-profit education at last year’s conference.

Infobox person using alma mater Articles with hCards. Earlier we aggregated a compilation of notes from the Ira Sohn Investment Conference where some very prominent hedge fund managers detailed investment ideas.

He notes that a key to the problem here is the ‘rating’ these institutions receive from accreditation boards and he likens these boards to the ratings agencies who blessed subprime mortgages. If a person has money available for school Ashford finds a way to go after them. That said, we’ve also noted that some of these managers have had a recent change of heart.

Are we going to load up a new generation with student loan debt they can never afford to pay back?

But from she became assistant secretary of post-secondary collfge for the Department of Education under President Bush. And now, Eisman has joined the mix with his negative view too.