Anonymous Activist Short Sellers Outperform

0
Anonymous Activist Short Sellers Outperform

Activist short sellers who go by a pseudonym outperform those whose identity is known, according to research by Activist Insight to coincide with the launch of its short seller database, Activist Insight Shorts.

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

Stocks targeted by anonymous short sellers declined by an average of 28% in the two years after the campaign became public versus a mere 20% decline over a comparable period for short sellers who operate in the public eye.

Both kinds of activist short seller use online postings to convince the market to dump stocks they believe are overvalued or fraudulent, and anonymous short sellers are becoming more commonplace.

Khrom Capital killed it during the first quarter, continuing its strong track record; here are their favorite stocks

Khrom Capital was up 32.5% gross and 24.5% net for the first quarter, outperforming the Russell 2000's 21.2% gain and the S&P 500's 6.2% increase. The fund has an annualized return of 21.6% gross and 16.5% net since inception. The total gross return since inception is 1,194%. Q1 2021 hedge fund letters, conferences and more Read More


According to Activist Insight Shorts, 58 campaigns were led year-to-date by anonymous activist short sellers, compared to a record high of 67 last year and just 31 in 2013. The number of campaigns led by known short sellers peaked in 2015 at 215, and declined to 196 in 2016 and 110 year-to-date.

Number of campaigns by short seller type.

* YTD figures as of November 16, 2017

The outperformance may be because anonymous short sellers are more likely to target smaller companies, according to Activist Insight research. Year-to-date, 84% of their targets were under $2 billion in market capitalization, compared to 65% for known short sellers.

Anonymous short sellers have been behind some of the year’s most successful calls, including “The Friendly Bear” at Acqua Metals, while two anonymous short sellers kicked off a campaign at $1.3 billion market cap healthcare company MiMedx.

For any questions about the data, or if you have a follow-up request, please contact Josh Black at [email protected] Please note that bespoke data requests may take 24-48 hours depending on the amount of manual work required.

About Activist Insight

Since 2012, Activist Insight has provided its diverse range of clients with the most comprehensive information on activist investing worldwide. Regularly quoted in the financial press, Activist Insight is the trusted source for data in this ever-evolving space. Activist Insight offers four great products: Activist Insight Online, Activist Insight Shorts, Activist Insight Vulnerability and Activist Insight Monthly magazine, and counts many of the world’s leading investment banks, law firms, shareholder communications firms and institutional investors as its clients.

Article by Activist Insight

Previous article Six In Ten Senior Decision Makers Predict Greater Business Efficiency From MiFID II
Next article Samsung Galaxy Note 9 And S9 To Retain Heat Pipes: GeekBench Scores
Financial news and data providers Activist Insight and Proxy Insight announced in October 2020 that they had merged to form Insightia, a leader in the field of public company information. Activist Insight was formed in 2012 and offers an extensive range of products including Activist Insight Online, Activist Insight Governance, Activist Insight Vulnerability, Activist Insight Shorts, Activist Insight Monthly magazine, and The Activist Insight Podcast. Proxy Insight has quickly become the world’s leading source of information on global shareholder voting, covering such hot topics as director and auditor elections, “say on pay” resolutions and environmental, social, and governance (ESG) proposals.

No posts to display