Muddy Waters Research
Muddy Waters Research is an activist investment firm that utilizes an investigative financial journalism-based strategy. A pioneer in on-the ground investment research, Muddy Waters specializes in short selling and uncovering fraudulent or misleading business practices within publicly traded companies. The firm's activist campaigns have assisted regulators with identifying and delisting problematic public companies in Hong Kong, Europe, Canada, and the United States. The firm produces three types of research products: Business fraud, accounting fraud, and fundamental problems.
ABOUT MUDDY WATERS RESEARCH
Muddy Waters Research is one of the most prominent and controversial short-selling firms, with a reputation for uncovering corporate fraud, financial mismanagement, and misleading business practices.
Activist campaigns conducted by Muddy Waters have led to numerous financial restatements by companies, four de-listings and one multi-year stock suspension by securities regulators, over $100 million in restitution paid to investors, and over $50 million paid to regulators.
Muddy Waters Research was founded by short selling expert Carson Block.
NOTABLE CASES
Sino-Forest.
Muddy Waters gained fame in 2011 following the publication of its research on SinoForest Corp., which exposed the company as a massive fraud.
Luckin Coffee.
Muddy Waters published a report alleging that the company had fabricated sales data, which was later proven to be true. The scandal led to the company’s delisting from the Nasdaq and a sharp decline in its stock price.
NMC Health.
The firm published a report accusing NMC of overstating its financials and inflating its cash position. This led to a severe drop in the company's stock price, and NMC was later forced to acknowledge serious financial issues.
MUDDY WATERS REPORTS
Focus on issuers that have massively overstated their revenues.
Accounting Fraud Reports.
Cover real businesses that boost profits through fraud.
Fundamental Problem Reports.
Discuss opaque businesses that have serious fundamental problems that the market does not yet perceive.