The rise and fall of U.K-based Quindell PLC (LON:QPP) has been spectacular to watch this year. Qunidell, previously known as Quindell Portfolio, provides software and consulting services to the telecom and insurance industry and has been the target of a public short attack by Gotham City Research. The research report led to a shakedown of Quindell’s share price which wiped out its entire gain for the year. Gotham said that Quindell is worth only 3 pence, the stock closed at 18.5 pence today after a 3.5% loss.
Laffont’s Coatue shorts 0.53% of Quindell PLC (LON:QPP)
Short interest has been steadily climbing up since March of this year, now up to 5.7% of Quindell PLC (LON:QPP)’s outstanding shares. Philippe Laffont’s Coatue Management is the latest to bet against the tech company. Laffont is otherwise known for his bullish investments in both tech giants and startups. Coatue’s leading investments have been in private ventures like Lyft, Snapchat and Flipboard. Laffont’s hedge fund has not been doing well and has suffered a 7.2% loss in the first quarter. In the monthly investor letter, Laffont said that the fund is on the constant lookout for worthy long and short ideas. It would appear that shorting Quindell seems like a good opportunity to Coatue for now.
Coatue’s other short positions include Monitise Plc (LON:MONI) (OTCMKTS:MONIF), also a tech company that provides mobile banking solutions.
Long and short side of Quindell
Other shortsellers of Quindell PLC (LON:QPP) include U.K-based hedge funds, TT International and Ennismore Fund Management. On the other end, Polygon Global, one of London’s prominent hedge funds has a long position in the company which has been severely hurt due to Gotham’s short attack.
Quindell seeks premium listing on LSE
Meanwhile Quindell PLC (LON:QPP)’s management remains undeterred and has fiercely defended allegations raised against the company. According to a press release today, Quindell is seeking to list itself in the premium listing on the London Stock Exchange instead of AIM listing. According to LSE’s website, “a premium listing means the company is expected to meet the UK’s highest standards of regulation and corporate governance – and as a consequence may enjoy a lower cost of capital through greater transparency and through building investor confidence.”
It seems Quindell PLC (LON:QPP) is focused on improving its image and gaining back investors’ lost confidence. The release said that they will update on the developments around June 19th, the day of annual general meeting.