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Tricks

Fahmi Quadir on values-driven short selling

It’s been five years to the month since 29-year-old Fahmi Quadir shook Wall Street by betting against Valeant Pharmaceuticals. Having identified the company as most likely engaging in fraud, Quadir’s bet paid off when Valeant’s sky-high share price lost 90% of its value in less than a year.

“It’s incredible to think how much has changed and how much my life has changed in that time,” she says in the latest Opto Sessions. “It really was a serendipitous event, for me to become a short-seller and then go on to launch my own firm.”

Safkhet Capital — the fund Quadir founded six months after she had cashed out her iconic short — holds a unique position amid Wall Street. The women-run, short-only fund has become known for high conviction bets and a penchant for investigating corporate fraud – and winning out when it’s exposed.

 

Listen to the full episode to hear more about Fahmi Quadir’s short-selling tactics

 

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When German fintech firm Wirecard [WDI] revealed that $2bn in cash had gone missing from its business earlier this month, Quadir’s bet was validated, having allocated a quarter of Safkhet’s capital to shorting the firm since last year. 

“Short selling [fits] into my world view and values system,” she explains. “You have to be good at asking questions, you need to be good at listening. I really see myself as an observer, and that allows me to better understand the world around me and the companies I’m investigating. You also have to have a really high pain threshold.”

 

Listen to the full interview and many more like it, on Opto Sessions.

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

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