COMMERCE 1AA3 Lecture Notes - Lecture 6: Business News Network, Scribd, Cash Flow
13 Oct 2017
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Callidus capital (cbl. to) why is the borrow expensive? (*disclosure: i have no position in callidus capital. ) Callidus is currently suing west face capital (a hedge fund) and veritas. Investment research (an independent research rm) for defamation and. So i will try to be neutral as i talk about my speculation as to why the borrow is expensive. The rst thing that comes to mind is the defamation lawsuit against veritas, a rm that does not do activist shorting. Some short sellers really pay attention when companies sue their critics- more so when the criticism was private rather than public. I"m not saying that short sellers are necessarily right or wrong to bet against such companies- the counterexample would be fairfax financial (fairfax"s stock has done quite well since launching its lawsuits). But it is certainly something that (in my opinion) attracts short sellers.
