(Reuters) -Short-seller Andrew Left, whose company Citron was one of the hedge funds to spark this week’s battle with small-time traders over GameStop Corp, said in a YouTube video on Friday that his company would no longer publish short-selling research.
The development marks the latest twist in the GameStop saga that has sent ripples across Wall Street as amateur investors have piled onto heavily-shorted stocks like GameStop, AMC Entertainment Holdings Inc and BlackBerry Ltd, sending professional short sellers and hedge funds scrambling to cover losing bets.
Short sellers typically bet against companies that they believe have outdated business models or are overvalued.
The war began when Left started short selling GameStop shares and was met with a barrage of retail traders betting the other way. Citron has been a target on Wallstreetbets.
“As of today, Citron Research will no longer be publishing what can be considered as short-selling reports. The Citron narrative is going to change and have a pivot,” Left said in the video. here
The decision to stop publishing short-selling research comes just days after Citron abandoned its bet against GameStop after the video game retailer’s value soared almost tenfold in a fortnight.
Left had said earlier this month that he had shorted GameStop with its share price at around $40, expecting it to halve in value, but was later forced to cover Citron’s position.
On Friday, Left reiterated his conviction that GameStop was a dying business and its stock price would fall sharply in the future.
“If you choose to buy GameStop here, it’s caveat emptor. You know what we think about their business model. It’s on you,” Left said.
Over the years, Left has targeted companies he thinks are over-valued through his work at Citron Research and published short-selling reports that have set the agenda for institutional investors.
Citron, which is widely credited with inventing the practice of publicly posting research that supports short bets, has in the past taken famous short positions against companies including Valeant Pharmaceuticals International Inc and electric vehicle maker Nio Inc.
“When we started Citron, it was to be against the establishment, but now we’ve actually become the establishment,” Left said on Friday.
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