Cryptocurrency News

Activist hedge fund Kerrisdale betting’s stock will fall

imageStock Markets1 hour ago (Feb 13, 2020 10:06AM ET)

(C) Reuters. Activist hedge fund Kerrisdale betting’s stock will fall

By Svea Herbst-Bayliss

BOSTON (Reuters) – Activist investor Sahm Adrangi’s Kerrisdale Capital hedge fund is taking aim at Match Group Inc (O:MTCH), arguing that the company behind dating sites and Tinder will see its shares drop as it faces threats of increased governmental regulation.

“The thrill of the unexpected should be confined to going on a new date, not investing in the company that helped you find it,” Adrangi told Reuters in an interview.

“We are short Match Group and think the stock price is worth less.” He declined to say where he thinks the stock, which closed trading at $75.58 on Wednesday, should be trading.

Congress is investigating the safety of online dating apps amid complaints of underage use and the Federal Trade Commission sued Match Group last year over alleged “deceptive or unfair practices” used to get people to subscribe to the site.

“Federal investigations not only mean soaring legal costs and potential legal damages but more importantly, they will likely result in a lasting impact to Match’s business model,” Adrangi wrote in a 26-page report on the company that will be published on Thursday.

Match said it had no comment.

The man behind the $500 million Kerrisdale fund rose to fame as one of a small number of so-called short sellers who bet correctly that Chinese logging company Sino-Forest Corp was a fraud.

Last year Kerrisdale earned a 21% return as bets against companies, including molecular diagnostics firm CareDx (O:CDNA) and semiconductor and telecommunications equipment company Qualcomm (O:QCOM), paid off.

Kerrisdale’s report on Match Group comes as it and rival dating companies Bumble, Grindr, the Meet Group are due to respond to a series of questions recently submitted to them by the U.S. House Oversight and Reform subcommittee on economic and consumer policy.

The questions focus on users’ ages, age verification, and any complaints about assault.

Dating services generally require their users to be at least 18 years old.

Match Group, which went public five years ago and has a market capitalization of $21 billion, has seen its share price drop 8.8% so far this year. Last month Chief Executive Mandy Ginsberg said she was stepping down, citing health challenges.

Activist hedge fund Kerrisdale betting’s stock will fall

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!