Gotham Research Founder Fears For Safety After Article Published
July 10, 2014 Leave a comment
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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