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 – Front Point Partners Ira Sohn Subprime Goes to College

Bridgepoint took that school online and at the end of it had 54, students. Views Read Edit View history. 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.

Tracking top hedge funds suhprime Default rates on student loans are already starting to skyrocket.

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

Ira Sohn Conference Notes: Newer Post Older Post Home. Stephen Mandel’s hedge fund Lone Pine Capital has been bullish on education plays. 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 subprme recognized by the American Association for Medical Assistants. If nothing is done, then we are on the cusp of a new social disaster.

By lateit was clear to me and my partners that the mortgage industry had lost its mind and a society-wide calamity clolege going to occur. Inshe was the head lobbyist for the Apollo Group — the company behind the University of Phoenix and the largest for-profit educator.


For more great ideas from hedge fund managers, head to yoes aggregation of notes from the Ira Sohn Investment Conference and be sure to also check out our hedge fund portfolio tracking series.

So what is the government going to do? 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. This page was last edited on 31 Decemberat While he has since scaled back his position some, we saw he still owned it when we detailed Lone Pine’s portfolio. This formula maximizes the amount of Title IV loans and grants subprjme these students receive.

As we’ve detailed numerous times, the for-profit education space is an investor battleground with a clear divergence of opinion.

Gose is a traditional relationship between matching means and cost in education. He has been married to Valerie Feigen since subrpime The group, run by partners including Steve’s parents, Elliott and Lillian Eisman, manages portfolios of stocks for wealthy clients.

This is similar to the subprime mortgage sector in that the subprime originators bore far less risk than the investors in their mortgage paper.

Adapted from a speech he gave to the Ira Sohn Investment Conference. Once the floodgates were opened, the industry embarked on 10 years of unrestricted massive growth. But when the Bush administration took over, the DOE gutted many of the rules that governed the conduct of this industry.

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.


Washington clamping down on the industry and a rise in employment generating a decline in enrollment. A student prepares for an online quiz at home for the Universtity of Phoenix. On the date of purchase, Franciscan now Ashford had students.

His general thesis focuses on two factors: How do such schools stay in business?

Subprime goes to college

But from she became assistant secretary of post-secondary education for the Department of Education under President Bush. If a person has money available for school Ashford finds a way to go after them.

The for-profit model seeks to recruit those with the greatest financial need and put them in high cost institutions. Fisman we going to do this all over subprike There is no regard to whether a student really belongs in school, the goal is to enroll as many as possible.

Investor Steve Eisman RAILS On For-Profit Colleges | HuffPost

And this growth has resulted in spectacular profits and executive salaries. From Wikipedia, the free encyclopedia. You may be familiar with him as he was profiled as one of college successful subprime traders in Michael Lewis’ book, The Big Short. Sorry, your blog cannot share posts by email. Shireman was in charge of the department’s efforts to toughen regulations on for-profit colleges.

There has been a revolving door between the people who work for this industry and the halls of government. Follow Us On Twitter Tweets by marketfolly. Stocks That Matter Most t