A little Toronto hedge firm with 45% returns, on the top floor of a neat brown office tower above a pizza, may be found far from the usual hedge fund world’s map.
45% returns in the DOJ’s short sells investigation ( Is this real or not) – Toronto hedge firm
Yet Kassam’s prominence has been growing in the Toronto hedge firm investment community, and the Toronto hedge firm he has led since 2007 has been experiencing significant growth. Over US$1.5 billion is now being managed by Anson Funds, which has more than tripled in size during the past four years. It has returned almost 45% per year for the past two years, bringing its average yearly gain from creation up to nearly 16%. If you compare it to the average annual return generated by long-short funds over that time period, as measured by Bloomberg hedge fund indexes, you’ll see that it’s more than three times higher.
Kassam has built a strong network in the Toronto hedge firm area and has established himself as a financial genius turned philanthropist. Sometime after Toronto hedge firm Life published photos from his three-day wedding celebration, the magazine’s editor joined other business executives on the board of his charity.
Using the handle MunchingMoez, he has amassed over 5,600 Instagram followers who avidly follow his exploits as a socialite and foodie in Toronto hedge firm. Recent photos show him enjoying his birthday with Shawn Kimel from K2 and Richard Pilosof from RP Investment Advisors, both executives at major Canadian funds, and Moti Jungreis, the recently retired head of markets at TD Securities. Kassam frequently uses the term “the crew” to refer to his ever-changing group of friends.
Although marketing itself as a prudent long-short Toronto hedge firm, some credit Anson’s success to risky investments that have caused legal trouble. On at least five occasions, Anson has been sued or countersued for various allegations of deceit, all of which it has rejected. Anson has been sued by a number of parties, including companies it has placed bets against, a corporate shareholder, and a short-selling researcher who previously worked with but now opposes the company.
A person with knowledge of the matter who did not wish to be identified said that executives at Anson believe the Toronto hedge firm receives disproportionate criticism because it is one of the few Canadian hedge funds to take significant short positions. This has prompted the Toronto hedge firm to shift its focus to long bets instead. The article also implies that the estranged researcher is responsible for drawing unnecessary attention to themselves.
CANNABIS SHORTAGE
The name “Anson” honours British Admiral George Anson, who gained notoriety in the 18th century by attempting a dangerous round of the globe. His fleet perished at sea, but he made his fortune by seizing a silver-laden Spanish galleon. A massive wooden map chronicling that four-year expedition can be found in the company’s headquarters, along with one of Admiral Anson’s quotes: “Prudence, intrepidity, and endurance.” The company is headquartered in Dallas but is officially registered in the Cayman Islands.
It’s beneficial to live in a Toronto hedge firm that gives more return. Canada’s stock market saw a bubble a few years ago when eager investors bought into the country’s fledgling cannabis sector. During a time when banks were hesitant to lend much assistance because of return, Anson was one of the money managers who assisted start-ups in securing funding. It was also making a wager against them.
FIGHTS IN THE SCIENCES
In 2015, Anson was sued for making another kind of bearish wager. The company was the target of a “short attack” by Nobilis Health Corp., which was based on rumours. Executive Chairman Chris Lloyd of Nobilis said in court that he had met with Anson representatives who were interested in investing. A portfolio manager at Anson named Sunny Puri was behind the pseudonymous blog article that slammed Nobilis a few months later in Toronto hedge firm.
In recent years, it has gotten riskier to publish pessimistic studies because Toronto hedge firm are increasingly bringing detractors to court. As a result, several hedge funds have begun secretive ties with outside academics, sometimes paying for their expertise in exchange for commissioned papers or other forms of insider information. Short sellers’ detractors may see these connections and assume they are part of a larger plot to artificially depress stock prices, leading to calls for investigations.
The Department of Justice is currently investigating those connections.
Those familiar with the situation say that Anson has conducted secret collaborations with a number of researchers whose communications have been sought by U.S. investigators. Both Andrew Left of Citron and Ben Axler of Spruce Point, to name two, opted not to provide an interview for this article. As far as the investigation is concerned, neither has done anything wrong.
Anson’s romance with a freelance researcher ended up in court.
Defamation charges were filed against Robert Doxtator, a former ally of Anson’s after the former claimed responsibility for a spate of online articles that criticised the hedge fund’s trading techniques for return. This was a few years ago.
Court records don’t provide any evidence that Anson collaborated with Markopolos. Not even when asked for his thoughts did he reply?
According to the documents, Doxtator claimed that he made millions of dollars off of the trades and that Kassam had agreed to pay him 15% of any profits. Kassam testified in court that he and Doxtator placed over $112,000 in bets while communicating via WhatsApp. In this case, the researcher’s cut of 15% would be $18,000.
This litigation has yet to be resolved. According to those familiar with the situation, the Justice Department has been inquiring into short sellers’ bets against GE and hundreds of other stocks.
Terrific BET
Although Kassam describes this trade as Anson’s “most profitable long bet,” it has not been without its share of criticism.
The corporation started placing bets on Genius Brands, which produces shows for kids on television, in 2017. Kassam, in an interview with ValueWalk published earlier this month, said he backed the company’s content because he thought the cartoons were good.
According to a lawsuit filed by another shareholder in Genius Brands, Anson increased the shareholding in early 2020. While other investors acquired stock with a lockup term of 1 1/2 years, Anson was allegedly part of a group of noteholders who made an agreement to pay 21 per cent a share with a guarantee not to sell for a few months. A few weeks later, the stock price skyrocketed, temporarily exceeding US$11, as speculation grew that either Walt Disney Co. or Netflix Inc. may buy the company. No one ever did.
According to the lawsuit filed by shareholders, Anson and the other defendants profited over $100 million from the stock’s meteoric rise. Anson has filed a motion to have this case thrown out.
But, not all stockholders have been so fortunate. However, Genius eventually gave up most of its gains and is once again trading at approximately $1 USD.
The related Anson funds increased by 45.1% in 2021 due to the meme stock craze.
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