Algebris Complains About Short-Seller’s Report

May 1 2014 | 5:10am ET

London-based hedge fund Algebris Investments took a big hit on its investment in Quindell Portfolio last week, and CEO Davide Serra isn’t happy.

The legal outsourcing company’s shares plummeted almost 40% last Tuesday after Gotham City Research said its shares were worth less than one-tenth of what they were trading for. Its report, which it issued after making a big short bet against Quindell, called the company “a country club built on quicksand.”

Serra, whose firm owns about a 2% stake in Quindell, has accused Gotham City of insider-trading and market manipulation, filing complaints with both the U.K. Financial Conduct Authority and U.S. Securities and Exchange Commission.

Quindell said that it believes Gotham’s report to be part of “a coordinated shorting attack.”

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    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…