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Anyone have any insight into what he's doing as a business model? Basically having a fund, investigating companies (as you would have to do anyways to vet a pot
by atlasunshrugged 7y ago
Anyone have any insight into what he's doing as a business model? Basically having a fund, investigating companies (as you would have to do anyways to vet a potentially large investment) and then if you find malfeasance, corruption, etc. shorting the stock and exposing it publicly. You could probably pair it up with a management consultancy or something that could swoop in and charge a fee to clear out the corruption and get things running back on track if you wanted to go long on the stock too. I realize this may be somewhat like what activist investors do but I'm thinking more focused on corruption fully rather than just underperforming companies. Something like what Bill Browder did in Russia back in the day (and if you haven't read his book Red Notice, it's an incredible read, has helped lead to Magnitsky Acts around the world, but I won't spoil it)
- tdhoot 7y agoThe term for this is "activist short seller". It's pretty common. Citron Research, Bonitas, and Spruce Point are some of the firms I've heard of that follow this business model, but there are tonnes of them.