January 14, 2012

Activist Hedge Fund challenges Wall Street

Apparently, there's a new Hedge Fund which has been created by hackers. The name of the Hedge Fund is Anonymous Analytics and you can visit their website at anonanalytics.com or their Twitter account at @anonanalytics. According to their website, their business idea is:
"We provide the public with investigative reports exposing corrupt companies. Our team includes analysts, forensic accountants, statisticians, computer experts, and lawyers from various jurisdictions and backgrounds. All information presented in our reports is acquired through legal channels, fact-checked, and vetted thoroughly before release. This is both for the protection of our associates as well as groups/individuals who rely on our work."

Their first trade was shorting the company Chaoda Modern Agriculture - that is believing that the company's stock price would fall. They claimed that they had found evidence of one of the Hong Kong exchange's largest and longest running frauds.

Was this a good trade? According to Yahoo finance, the company Chaoda Modern Agriculture has not traded since October 2011. Here's the chart: finance.yahoo.com. The reasons seems to be that the company has been the subject of various allegations of fraud and of insider trading by its executives.

Source: FinanceAsia