Latest Chinese Fraud May Cost Maverick Capital Nearly $200 Million

Tyler Durden's picture

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TooBearish's picture

Who is on the other side of these trades?  Chanos?

asheylarry's picture

I've been trying to cherry pick a few good apples from the bunch. Serious mine field.

I can tell you that naked shorting is alive and well in this space.

there is a fine line between "research" firms doing their investigations and scumbag short price manipulators

tickhound's picture

eh... $200 mil a drop in the bucket in bennie-bucks.

buzzsaw99's picture

No surprise that the Chinese are smarter than Wall Street fund managers. Laughable.

dracos_ghost's picture

Jesus, are there any f&*ked up deals that Goldman isn't part of.

LawsofPhysics's picture

Why these wall street "pros" don't simply set massive amounts of paper on fire is beyond me.  Seem like it would at least be more entertaining.

exaengr's picture

Incorrect ticker of LFC in first paragraph, a 100B (?!?!) China Life Insurance outfit?  Hmmm, also a short/fraud candidate?

I am a Man I am Forty's picture

what a bunch of punk ass dumb shit investors, LMAO at Fidelity, Maverick, JPM, and all the other fools and crooks involved in this shit stock

Goldman is slowly getting what is coming to them, starting to see it in their stock price, prison will come, but it will take a while

The Fonz's picture

The ZH short basket? I wonder where or how one could see what ZH recomends? I would be very interested :P

Also what is this program that Mr. Durden uses for all his chart work? I think it might be time for me to improve my resources if someone would be so kind :)

SolidSnake961's picture

there was a big post a while back where zerohedge created a basket of a bunch of chinese stocks that should have been shorted

ProdigyofZen's picture

Uh? its called Bloomberg. it will set you back about 1850 a month. Well at least i know thats the group price. I couldn't imagine what the individual price would be.

topcallingtroll's picture

You would think maverick and fidelity would "do deligence" on their investments.

How can the little guys with virtually no resources uncover these things and the big sophisticated players cant?

Quantum Nucleonics's picture

Though it makes me sick to do so, in defense of some of these managers (e.g., Fidelity) some of these investments are probably for index funds.

ml8ml8's picture

"This company had Goldman at their IPO, Deloitte as their auditor, and major firms as their investors. You couldn’t ask for a better structure.”

You also couldn't ask for a more rich basket of future defendants in the securities fraud litigation sure to ensue.

DNB-sore's picture

congrats Tyler!

monopoly's picture

Partly because of Zero Hedge I have not bought 1 Chinese stock in the last 2 years. Did not know enough about the fraud companies to short but did not get hurt, not even once.

Thank you Zero Hedge.

Hephasteus's picture

Should have gone to market watch. They would have hooked you up with 10 of them.

But to be fair. Zerohedge does have Leo "Buy Chinese solar stocks."

Stanley Lord's picture

What a minute, I did not see this LTF listed on any web site that touts what the hedge funds are buying (Market Folly, Guru Focus) you mean that hedge funds buy other thnigs without telling us? They buy other stocks besides Microsoft and P&G?



Dan The Man's picture


Speculative Shorters... Power to the People !


Go get them all, you rock !

steve.stuart's picture

Chinese fraud ... are they joking. How about the investment banks cheating the public by offering Linkedin IPO at more than 200 times PE

Ted K's picture

You're not supposed to notice that Steve, or the fact that the exchanges and FINRA do nothing under the sun, except protect broker/dealers from real regulation from the SEC.  Before Mary Schapiro gets up from her desk to urinate she calls FINRA for permission.

PulauHantu29's picture

China is competing with Wall Street for the Biggest Fraud.

Is there a Nobel Prize for Fraud?

Hexus's picture

Would be praised if they weren't Chinese for sound business idealism or some junk.