Wednesday, 1 October 2014
Last updated 12 hours ago
Dec 20 2013 | 10:52am ET
A Canadian hedge fund manager has been accused of lying about a Chinese silver company to drive down its stock price.
The British Columbia Securities Commission accused Jon Richard Carnes of making false claims about Silvercorp Metals, which does business in China but is based in Vancouver, on his blog, Alfredlittle.com two years ago. The report hit the mark: Silvercorp shares swooned by 20%—and Carnes covered his short bet against the company the following day, earning US$2.8 million.
The only problem, according to the BCSC, is that Carnes made the whole thing up.
"Carnes attempted to find a mining expert to support his theory that Silvercorp's Chinese filings contradicted its North American regulatory filings for the company's SGX mine, as the Chinese filings had lower production, quality and resource estimates," the regulator alleges. "When two mining experts failed to support his theory and with his put options about to expire, staff maintains that Carnes wrote a false negative report about Silvercorp and published it anonymously on Sept. 13, 2011."
Carnes said he would fight the allegations, and noted that his claims against Silvercorp "proved to be true," leading to a pair of class-action shareholder lawsuits. Silvercorp counters that Carnes' accusations "have been established as entirely false."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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