Jim Chanos, the investor who predicted Enron's collapse, is transforming his hedge fund into a family office.

• Jim Chanos, a well-known short seller, is transforming his hedge fund into a family office.
• CNBC has learned that he will no longer manage a limited partnership or an offshore fund and will repay external capital to investors.
• As the S&P 500 has risen nearly 18% year to date and gained over 7% in November, a move is taking place.

Jim Chanos, a well-known short seller, is reportedly transforming his hedge fund, Chanos & Co., into a family office and advisory business, according to CNBC.

The investor, renowned for his opposition to Enron prior to its bankruptcy in 2001, will no longer manage a limited partnership or an offshore fund and will repay external capital to investors, as per Chanos' statement to CNBC's Scott Wapner.

The value of assets managed by Chanos & Co. has decreased significantly, dropping below $200 million from $6 billion in 2008, as reported by The Wall Street Journal.

In 2023, the stock market has rallied, with the S&P 500 up nearly 18% and the broad-market index on pace for a 7.6% gain in November. As a result, Chanos is moving to the family office model.

Notably, Chanos shorted Enron a year before its collapse, and in January of this year, he had short bets on Tesla, indicating growing competition in the electric vehicle market. He pointed out at the time that China is the weakest market for Tesla.

BYD and other Chinese automakers are taking massive market share, while Tesla trades at a premium to companies growing faster than they are in China. If you want to play these things, there are now many ways to do so.

In 2023, Tesla reduced the prices of its S and X models in China and introduced lower-cost versions of these vehicles in the U.S., as competitors intensified their presence in the EV market.

The Magnificent 7 tech stocks have attracted a surge of investors, resulting in a 90% increase in Tesla shares' value this year.

In November, the stock market experienced a strong surge on the expectation that the Federal Reserve would begin reducing interest rates in 2024.

Last year, CNBC reported that Chanos advised investors not to rely on the Federal Reserve to save them.

In January 2022, Chanos stated on CNBC's "Halftime Report" that the notion of a Fed put and the Fed's constant bailout of bad investment decisions is not a sound investment strategy to hold onto for an extended period.

-CNBC’s Yun Li contributed reporting.