Article: ‘I regret any harm:’ Short seller compensates target in rare move

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‘I regret any harm:’ Short seller compensates target in rare move

Lawrence Delevingne, 22 June 2021

BOSTON, June 21 (Reuters) – A small Texas investor who caused shares of a real estate investment trust to plunge 39 percent in a day has agreed to pay the company restitution to settle a lawsuit against him, a rare development that could embolden other companies to pursue such claims.

Quinton Mathews, who published his research on companies online under the pseudonym Rota Fortunae, will pay Farmland Partners Inc (FPI.N) “a multiple” of the profits on his short bet in 2018, according to the terms of the legal settlement announced late Sunday. His research had helped wipe as much as $115 million off Farmland’s market value. Continue reading “Article: ‘I regret any harm:’ Short seller compensates target in rare move”

Article: The Dark Money Secretly Bankrolling Activist Short- Sellers — and the Insiders Trying to Expose It

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The Dark Money Secretly Bankrolling Activist Short-Sellers — and the Insiders Trying to Expose It

Michelle Celarier

Institutional Investor, 30 November 2020

More than a dozen short-sellers interviewed by Institutional Investor in an effort to penetrate this murky terrain say there are numerous players and various permutations of the model that may involve the sharing of ideas and research along with either a cut of the gains on the short trade or a set fee. In fact, some short-sellers believe that almost all of the activists have such backing — even those running small hedge funds themselves.