For Hedge Funds, Short Bets in Education?
Hedge funds on the hunt for their next big shorting opportunity have, at leastaccording to the Business Insider, found their next tasty target: the for-profit educational industry.
Business Insider unequivocally suggests that the industry is “ripe for the taking.”
Business Insider writes:
For two decades, for-profit schools have lured gullible students with inflated promises of impressive sounding degrees which they pay exorbitant tuition to obtain. In education’s version of the subprime crisis, creative financial aid departments obtain government loans to finance the entire program.
Now, the publication says, the federal government is gearing up for a crack-down on deceptive marketing practices in the industry and promising more regulation. Without government subsidies, Business Insider says, the shares of for-profit universities like