Muddy Waters Founder May Launch Short-Selling Hedge Fund

Nov 26 2012 | 1:52pm ET

The founder of research firm Muddy Waters, whose attacks on a Chinese timber company cost Paulson & Co. some $100 million, is mulling a hedge fund of his own.

"It's something we've thought about," Carson Block told Reuters TV in advance of the Reuters Global Investment 2013 Outlook Summit, which begins today. "The short answer is maybe."

Block has said he's considered a short-selling hedge fund "for a while" as he seeks to find ways to profit from his calls on Chinese companies. His most notable may have been against Sino-Forest Corp., which he claimed lied about the value of its timberland holdings. Paulson, which owned more than 14% of Sino-Forest, lost some $105 million when the company's stock cratered in the aftermath of Block's pronouncement last year; Sino-Forest filed for bankruptcy in March.

Block, who said he recently moved from Hong Kong to California after receiving death threats, told Reuters he recently met with hedge fund legend Michael Steinhardt. "He was saying, 'I shorted more stock than anybody else alive. But net-net over the years, I am flat on my shorts."

While Muddy Waters trades Blocks' own capital, he distributes his research for free.


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of