SFX Entertainment has struggled in the year since it went public, with an erratic CEO and a declining stock price, and is now a the public short target of at least one activist investor, sending the stock plunging.
A new database has tracked the biggest winners and losers in activist short-selling. Pershing Square’s Bill Ackman, despite Herbalife, is one of the best; David Einhorn of Greenlight Capital, isn’t.
Today, billionaire hedge fund manager Bill Ackman of Pershing Square Capital gave a three-and-a-half-hour presentation about Herbalife, the company he has a $1 billion short position in, and which he’s spent $50 million to date trying to take down. Things got… weird.
At least that’s the bet one hedge fund manager is making, shorting the home building sector on the belief that a “generational shift” is creating permanent renters.
Hedge fund managers are increasingly tweeting their research and their sharp-edged attacks betting that a company’s stock will fall instead of rise, in a medium that was made for stirring up trouble.
World Acceptance, a controversial lending company that has long been a short target of hedge funds, was forced to disclose an investigation by the Consumer Protection Bureau and a separate investigation of securities fraud, causing the stock to tank.
A series of regulatory investigations and an analyst defecting has made for quite the wild ride for Herbalife stock.
Citron Research released a report calling the financial practices at construction industry service provider Textura Corp. “American Hustle meets Wolf of Wall Street” and sent the stock into free fall. There was also a reference to Die Hard and Liar Liar.
When will you be on CNBC again? #inflation
Recent revelations about predatory lending practices at World Acceptance have led to a hedge fund exodus. One prominent hedge fund manager went so far as to call the company “bad for humanity.”
Whitney Tilson says he is shorting companies with predatory business practices of questionable legality because he believes government regulators are “back on the job.” Online education and consumer finance, watch out.
The education activist and hedge fund manager is taking a major stand against the online education and tech company by publicly shorting its stock, calling K12’s practices and academic results “dismal.” And K12’s model undermines the charter school movement in which he is deeply entrenched.
Makes sense since high school and Wall Street are pretty much the same.