Unraveling a Multibillion-Dollar Aluminum Fraud
When Muddy Waters published pseudonymously on China Zhongwang in 2015, MW claimed the fraud was one of the most complex and global schemes that short-sellers have ever uncovered.
When Muddy Waters published pseudonymously on China Zhongwang in 2015, MW claimed the fraud was one of the most complex and global schemes that short-sellers have ever uncovered.
Short sellers are often painted with a broad brush as trying to profit from the demise of corporations, but a huge percentage of short interest is actually coming from hedgers who are combining short equity positions with long positions in other parts of the capital structure.
Short sellers often go after the worst of the worst, looking for companies and management teams with serious and potentially even criminal issues. This is leaving a massive opportunity set of poorly run but not fraudulent companies untouched by activist short-sellers.
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