Alicia McElhaney, 07 January 2020
In 2019, short-seller Andrew Left’s Citron Capital returned a searing 43.3 percent, net of fees. But instead of wallowing in glory, Left plans to make some changes to his investment style in 2020. Foremost, Left intends to zero in on small-cap stocks rather than betting on (or against) major names like Shopify and Tesla, he told Institutional Investor Tuesday.
“My job is not to be right; my job is to generate returns,” Left said. “I’m not doing that by shorting high-concept big stocks.” Left shared the firm’s 2019 performance in an investor letter Monday, where he also reflected on recent big bets and what’s ahead. He learned two major lessons in 2019, according to the letter. The first: “Always go back to Citron’s proficiency – exposing fraud.”