Jim Chanos, founder of long-short hedge fund firm Chanos & Co (formerly Kynikos Associates), and famed for bearish bets against Enron and Tesla Inc, is shuttering his hedge funds after almost four decades of trading, according to a report by the Wall Street Journal.

The report cites a letter sent to investors on Friday as revealing that the firm, which opened for business back in 1985, is planning to return 90% of client capitalby the end of this year, with the rest to following the first half of 2024.

Chanos's hedge funds are down around 4% so far this year, while assets have shrunk from a high of around $8bn in 2008 to less than $200m.

In the letter, Chanos, who intends to keep running the firm mainly as as a family office, while also managing money for certain clients in separately managed accounts, said: “It is no secret that the long-short equity business model has come under pressure and interest in fundamental stock pickers has waned. While I am as passionate as ever about research and investing, I feel compelled to pursue these passions in a different construct.”