CGI Group shares drop on report Chanos has major 'short' position

Wed Dec 4, 2013 12:41pm EST
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Dec 4 (Reuters) - Shares of CGI Group Inc , the parent company of CGI Federal, dropped as much as 5.5 percent after "Newsweek" reported that prominent short-seller Jim Chanos counts the stock among his "largest short positions."

CGI Group, whose CGI Federal is the main contractor behind the glitch-plagued, has been an investor favorite for nearly five years. But headlines on troubles at the federal health-insurance website, intended to be the showpiece reform of President Barack Obama's administration, are drawing growing attention to the company, often called Canada's most valuable technology firm.

Chanos, the founder of hedge fund Kynikos Associates, was not available for comment.

"Newsweek" also pointed out that other investors are siding with Chanos: Some 29.9 million shares traded in Toronto - nearly 11 percent of CGI stock traded on all exchanges - are being shorted, according to FactSet, a financial data firm.

Shares of CGI were down 4.7 percent at $34.50 early on Wednesday afternoon on the New York Stock Exchange. (Reporting by Jennifer Ablan in New York; editing by Matthew Lewis)