Behind the Rise of Activist Short Sellers

When a business has been predicted as falling in the future, investors have reasons to invest money and wait for stocks to grow after that. It could be a very profitable investment, but only if investors are sure that business’s stocks will decrease. However, there are predictors and companies (popularly called short sellers) that had a job to make those predictions, even though that is not a reliable investment. Those predictions rely on predictions of people that know trade and stock market behavior. They also rely on expectations, speculation, and desire that some business’s stocks will decrease and then grow again in future years.

This article is about people who are constantly working on revealing of potential frauds in this field.

It is not strange that many falls predictors actually mislead potential investors, and, which is most likely, the companies and business themselves make potential investors believe in their future growth and encourage them to invest in their business. Thanks to many new companies and researchers many frauds and scams have been revealed, as people who wanted to invest have learned about false jobs and rapid growth in the future.

One of those companies and individuals is Gabriel Bernard, a co-founder of Viceroy, a formerly anonymous research firm co-founded by two 23-year-old school friends living in Melbourne, who resigned in 2017 from his role as a junior analyst at Ferrier Hodgson, and Aidan Lau. Thanks to his researching many fraud companies were revealed and people’s money saved. His war against large companies like MiMedx or NASDAQ is historical, but yet, he attracted new falls and frauds thanks to his high popularity. As was always been in the stock market, there are many people who would be interested in investing but also get rich quick. That is why they faced with attacks from other companies, large and small businesses but also hackers and frauds. Everybody wanted a piece of his popularity and knowledge or stop him in investigations.

Pixabay/Public domain

There are investors and bankers, on the other hand, who are not particularly interested in a job that Viceroy works. They claim that short selling traders are actually adrenalin addicts, who like risk and perhaps weird jobs to invest. They take a company Herbalife as an example. They have enriched in past decade, even though nobody knows how their CEO looks like. People from Viceroy answered them that they are only doing their jobs, looking for frauds and scams in order to prevent losing a lot of money and potential growth of false investments.

Whatever the reason for existing of these short seller activities, we would be happy to know that there are people who are working on fraud revealing. Although short selling is actually loved in short and risky investments, they should know that many of them are only on paper companies, and live from the money that investors gave to them expecting rapid growth in years to come.

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