So much chit-chat about shorting on IHUB, however one almost never sees the monumental costs mentioned which suggests little shorting actually takes place. I imagine the rates go even higher if one attempts to borrow a sizable chunk of shares.
Again, finding overpriced shares is easy. Successfully shorting them isn't
How does Muddy Waters make money? Well, their fund, I believe, charges 30% in annual fees!!!
Muddy Waters Launches Fund With ... drum roll... $100 million, Peanuts. I suspect that much about Carson Block is ego trip and fantasy. He hasn't done well shorting American stocks, but its hard to know for sure. Many of his non-Chinese targets plunge but then recover.
January 25, 2016: "NEW YORK (Reuters) - Short-seller Carson Block, founder of research firm Muddy Waters LLC who exposed accounting problems and wrongdoing at a slew of Chinese companies, has launched a hedge fund investment firm, a filing with the U.S. Securities and Exchange Commission showed.
Block’s new company, Muddy Waters Capital LLC, combines activism with long-short strategies but with an emphasis on betting against companies, the SEC filing said. Block, who according to the filing received an initial investment of $100 million, had been contemplating a hedge fund for several years."