Thursday, 28 August 2014
Last updated 6 hours ago
Aug 2 2011 | 12:07pm ET
Another hedge fund has taken aim at a Chinese company, again to great effect.
Absaroka Capital Management, taking a page from the playbook of Muddy Waters, accused copper wire-maker Lihua International of "excessive stock promotion" and "illogical financial results." The hedge fund also questioned deals between the company and another company owned by Lihua's chief operating office.
The Absaroka report pushed Lihua's shares on the Nasdaq Stock Market down 22.5% in about a half-hour yesterday, although they rebounded to close down just 11%. This morning, the stock, after a brief plunge, was trading above $6.00, or more than twice what Absaroka says it is worth.
A spokesman for Lihua told Bloomberg News that Absaroka's allegations are "pretty baseless" and that the company was preparing a response.
In June, Muddy Waters, another hedge fund, issued a damning report on Chinese timberland company Sino-Forest Corp, pushing that company’s shares down by some 90% and, in the process, costing Paulson & Co. almost $600 million.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...