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The Most Dangerous Trade: How Short Sellers Uncover Fraud, Keep Markets Honest, and Make and Lose Billions



The Most Dangerous Trade: How Short Sellers Uncover Fraud, Keep Markets Honest, and Make and Lose Billions

Richard Teitelbaum

ISBN: 978-1-118-61614-7 August 2015 320 Pages



How short sellers profit from disasters that afflict individuals, markets, and nations

The Most Dangerous Trade serves up tales from the dark side of the world marketplace to reveal how traders profit from the failure and, often, the financial ruin of others. In this book Richard Teitelbaum profiles more than a dozen short sellers to reveal how they employ the tactics, strategies, and various styles to zero in on their target, get the needed financing, and see their investment through to its ultimate conclusion.

The short sellers profiled will include stories of both their successful investments as well as their disastrous ventures. The book will examine the different styles, strategies, and tactics utilized, looking at how each short seller researches his or her targets, obtains financing, puts on a trade, and sees the investment through to fruition—or failure. With the appeal of a well-written adventure novel, The Most Dangerous Trade reveals how these investors seek publicity to help drive down a stock and shows the often bitter and controversial battles that ensue.

  • Includes profiles of well-know short sellers such as Jim Chanos, Steve Eisman, Manuel Ascencio, Doug Kass, and many more
  • Discover how short sellers make the "puts" that make them billions
  • Uncover the short selling controversies that make headlines
  • Written by award-winning journalist Richard Teitelbaum

Discover what motivates investors who wager against the stock market and how they often profit from the misery of others.

Preface vii

Chapter 1 Ackman: The Activist Grandstander 1

Chapter 2 Asensio: Exile on Third Avenue 27

Chapter 3 Chanos: Connoisseur of Chaos 51

Chapter 4 Einhorn: Contrarian at the Gates 87

Chapter 5 Block: Playing the China Hand 125

Chapter 6 Fleckenstein: Strategies and Tactics 153

Chapter 7 Kass: Nader’s Raider Hits the Street 177

Chapter 8 Tice: Truth Squad Leader 203

Chapter 9 Pellegrini: Behind the Great Subprime Bet 227

Chapter 10 Cohodes: Force of Nature, Market Casualty 257

About the Author 297

Index 299

“…a good guide to the red flags that the most successful short sellers look for in companies… its best it crackles with the fun of a private detective novel…” (Financial Times, September 2015)