June 7, 2020 By:

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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Eisman grew up in New York City, where he attended Yeshiva schools. We mention tuition prices as little as possible. Newer Post Older Post Home. Earlier we aggregated a compilation of notes from the Ira Sohn Investment Conference where some very prominent hedge fund managers detailed investment ideas.

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

By using this site, you agree to the Terms of Use and Privacy Policy. Gainful employment will cause enrollment levels to grow less quickly. 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. There has been a revolving door between the people who work for this industry and the halls of government.

For-profit college group: “Eisman is a self-serving nutcase” – Apr. 21,

Sorry, your blog cannot share posts by email. Infobox person using alma mater Articles with hCards. Collge is more profitable on a margin basis than even Apple.

The fund performed poorly inreturning 3. In the past 10 years, the for-profit education industry has grown times the historical rate of traditional post secondary education.


Steve Eisman

And this growth has resulted in spectacular profits and executive salaries. Inshe was the head lobbyist for the Apollo Group — the company behind the University of Phoenix and the largest for-profit educator.

In many cases, NOT much, not much at all. He has been married to Valerie Feigen since Subpriem was not sent – check your email addresses! His general thesis focuses on two factors: But when the Bush administration took over, the DOE gutted many of the rules that governed the esman of this industry. So what is the government going to do? Washington clamping down on the industry and a rise in employment generating a decline in enrollment.

Investor Steve Eisman RAILS On For-Profit Colleges | HuffPost

Eisman is a strong opponent of for-profit institutions of higher education. Posted by market folly at Hospitals refuse to even interview graduates.

After a discussion period, the rules will be issued in November and go into effect summer There is a traditional relationship between matching means and cost in education. And the days of raising tuition would be over; in many cases, tuition will go down.

This would force universities to lower their tuition, or face declining enrollment because fewer students could afford school. The latest trend of for-profit institutions, meanwhile, is to acquire accreditation through the outright purchase of small, financially distressed non-profit institutions.

Here is one of the more upsetting statistics. The group, run by sublrime including Co,lege parents, Elliott and Lillian Eisman, manages portfolios coloege stocks for wealthy clients. 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 eisjan government.


They were part of the machine.

Tracking top hedge funds since The answer is to control the accreditation process. If nothing is done, then we are on the cusp of a new social disaster.

A student prepares for an online quiz at home for the Universtity of Phoenix. How do such schools stay in business? But from eismann became assistant secretary of post-secondary education for the Department of Education under President Bush. In a sense, these companies are marketing machines masquerading as universities. How has this been allowed to happen?

Use this information at your own risk. And look at drop-out rates. Leaving politics aside for a moment, the other major reason why the industry has taken an ever increasing share of government dollars is that it has turned the typical education usbprime on its head. In order to be eligible for Title IV programs, the universities must be accredited. Let me quote a bit from a former employee of Bridgepoint Education, operators of Ashford University: From Wikipedia, the free encyclopedia.

Inside the Doomsday Machine”. 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 collegw by the American Association for Medical Assistants.