It takes a certain amount of gumption to take on an eight-year bull market, asking people to pony up $200 million for a short-selling fund while the president tweets away about Dow 22K. It takes a few other things, according to veteran short-seller Marc Cohodes.
Shorting is an “all-encompassing, knock-your-teeth-out kind of project, and a lot of people don’t have the energy, drive, determination, guts, perseverance, smarts, courage and ability,” he said.
It also helps to have the certainty of youth, and the experience of having gutted Bill Ackman. Twenty-six-year-old Fahmi Quadir has both.
Quadir says she campaigned for the Krensavage fund to turn up the dial on its wager against Valeant Pharmaceuticals International Inc. The bet, the fund’s largest winner in 2016, propelled it to a 14 percent gain, according to a letter to clients seen by Bloomberg News. Krensavage didn’t make an executive available to comment.
Cohodes said Quadir’s diligence on Valeant and Concordia International Corp. helped him gain conviction on his own wagers against those companies.
Plus, she doesn’t need a bear market to succeed. Just a bunch more con artists like Valeant.
“I’ve seen the tail end of a bull market and it doesn’t scare me,” Quadir, a protege of noted short-seller Marc Cohodes, said in a phone interview. Her edge? Identifying frauds or accounting vulnerabilities that could cause a stock to lose more than 60 percent of its market value, she says….
“She’s the real deal,” Cohodes, who once ran hedge fund Copper River Management and is now a private investor based in Cotati, California, said of Quadir. “I think she’s ruthless, I think she’s cold-blooded, and I think she’s dogged.”
Stop, Marc. You’ll make her blush.