Short Attacks: The New 'Wolf Pack': Best Practices for Preparing and Defending Against a Short Attack
Monday, June 6, 2016 | 2:00PM
- 3:00PM | Room: Grand Hall B
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Economics and Markets
| Clay Jeansonne | Michael Mulroy | Elizabeth Malone, CFA |
Eric Brielmann |
The recent short-seller attack against Valeant has thrust the role of short-sellers in the marketplace back to the forefront. From anonymous blog posts to publicly released white papers and press releases, the ease with which a short-seller can attack a company and the ramifications of the allegations (even if unfounded) are a serious and growing threat. Even after a company responds to criticism from a short-seller, the attack may trigger a downward spiral in stock price that is disproportionate to the original claims. While each short attack is unique, all short sellers have the ability to be disruptive and can pose a serious threat to any company, especially given the lack of disclosure requirements and the potential for highly aggressive campaigns. Short-sellers present a unique challenge for IROs because they are not regular shareholders, but often exert outsized influence on a company’s shareholder base. The panel will analyze the complex and changing environment in which short attacks are being carried out and what IROs can do to prepare and defend themselves.
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Learning Objective 1: Learn about short attacks and the hedge funds and research outlets that have emerged as short sellers
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Learning Objective 2: Learn what you can do to enhance a company’s IR program in the face of a short attack
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Learning Objective 3: Learn about the lack of regulation and transparency related to short selling