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Gotham Research Founder Fears For Safety After Article Published

Gotham Research Founder Fears For Safety After Article Published

by Mark MelinJuly 09, 2014, 1:36 pm

Gotham Research is considered an enigma on Wall Street – and this is how its founder, Daniel Yu, likes it.  When they first boomed onto the scene, really having been “discovered” within the last year, there was a “who are these guys?” whisper after their scathing research reports were quickly noticed and resulted in publicly traded firms collapsing in value.

Gotham Research’s cloudy background

That whisper turned into an overt scream yesterday when a major financial newspaper published an article outing the firm’s somewhat clouded background. In a statement to ValueWalk this morning, Yu expressed frustration that publicity could damage his business and even endanger his safety. This might not be that unfounded as Carson Block, another hedge fund short seller who publishes research on potential fraud, is said to have expressed similar concerns. Yu would neither confirm nor deny any personal details, however, ValueWalk independently confirmed the identity of Gotham’s founder, but agreed to leave out all details after a request from Yu. He is in the business of publishing research on publicly traded companies he believes are engaged in fraud. This indelicate focus resulted from his personal history of losing on stocks due to deceit and fraud, as was recently reported. This focus translates into the most celebrated research success in the firm’s short history: LETS GOWEX SA (OTCMKTS:LGWXY) (BME:GOW), a Spanish high flying tech stock.

Gotham Research’s report on GOWEX

After Gotham Research published a scathing research saying 90 percent of LETS GOWEX SA (OTCMKTS:LGWXY) (BME:GOW) revenue is “fake” and the company was engaged in accounting fraud, the stock immediately tanked nearly 50 percent – highlighting how, oddly, this firm with a short track record that had an almost non-existent public background could issue an opinion and collapse a publicly traded company. Gowex the firm being attacked wasn’t just any company, but a highly celebrated European technology success story. The CEO, who would later admit to committing accounting fraud, was honored by auditor Ernst and Young with Spain’s entrepreneur of the year in 2011.

Modern day vigilante in the finance world? Read more at http://www.valuewalk.com/2014/07/gotham-research-daniel-yu

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About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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