Monday, 30 November 2015
Last updated 20 sec 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.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…