Dan David (money manager)

Last updated

Dan David
Born
Flint, Michigan
Alma mater Northern Michigan University
Occupation(s)Investor,
activist,
short-seller,
podcast host
Known for Whistle-blower,
China expert, short seller
TitleFounder of Wolfpack Research
Website https://www.wolfpackresearch.com/

Dan David is an American investor, activist short-seller and whistle-blower. [1] He is the founder of New York-based Wolfpack Research, a financial research and due diligence investigation firm that was started in 2019 with support from short-seller Muddy Waters Research. [2] In the fall of 2017, [3] David and his work as a whistle-blower and China expert were the focus of the documentary film The China Hustle, which depicts how fraudulent Chinese companies stole billions of dollars from U.S. investors and retirees. [1] [4] In 2018, David was the Republican candidate for congress in Pennsylvania's 4th Congressional District, which includes Montgomery and Berks counties. [3] [5] He hosts of the "I Hung Up On Warren Buffett" podcast. [6]

Contents

In Feb. 2023, Wolfpack published a research report that was critical of the investment banking firm, B. Riley Financial. Wolfpack wrote in the report that B. Riley's "biggest risk is that much of its loan book appears headed for bankruptcy." [7] In Aug. 2024, B. Riley reported suspended its dividend, warned of losses and said it had received subpoenas from the Securities and Exchange Commission. The news sent the company's stock price down 50 percent in one day. [8]

Education and early career

David Attended Northern Michigan University and the Aresty Institute of Executive Education at The Wharton School at the University of Pennsylvania. [9] Before founding Wolfpack Research and other investment firms, David worked as a senior executive in the retail industry, including senior level positions at Finlay Enterprises, Midwest Famous Barr and Lord and Taylor. [9]

Investment career and activism

Dan David worked in various investment firms. He was Chief investment officer for F.G. Alpha Management, a hedge fund specialized in short stocks. [1] In 2007, he co-founded GeoInvesting, a microcap stock research firm. [10] Working out of Skippack, PA and an office in Manhattan, David has been credited with uncovering fraud in US-listed Chinese companies. [11] David later lobbied Congress to change federal laws regarding the listing of China-based firms on U.S. stock exchanges. [3]

In 2019, David founded Wolfpack Research, a short-selling research firm backed by Carson Block's Muddy Waters Capital. The company's ethos revolves around, as Block puts it, "uncovering financial fraud and other wrongdoing at public companies", [2] in continuation of the public image David built himself in the 2018 documentary film The China Hustle and in his congressional run. However, critics point out that David "is still profiting from the losses of these companies, and it remains unclear as to what he is doing with this money." [12]

He frequently appears in the business news media including on CNBC, Yahoo! Finance and Fox Business Network. [13] [14]

2018 Congressional campaign

In January 2018, David announced he would be entering the Republican primary to represent Pennsylvania’s newly formed 4th Congressional District, which includes Montgomery and Berks Counties. David became the Republican nominee but lost to the Democratic candidate, Madeleine Dean in the November 6th, 2018 general election. [15]

Personal life

David is a native of Flint, Michigan but has resided in Montgomery county, Pennsylvania, with his wife for more than 20 years. [9] He credits some of his drive to pursue fraud and corporate wrongdoing in the financial markets from having witnessed personal devastation and poverty that resulted from broken corporate promises to the people of Flint. [16]

Related Research Articles

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<span class="mw-page-title-main">Short (finance)</span> Practice of selling securities or other financial instruments that are not currently owned

In finance, being short in an asset means investing in such a way that the investor will profit if the market value of the asset falls. This is the opposite of the more common long position, where the investor will profit if the market value of the asset rises. An investor that sells an asset short is, as to that asset, a short seller.

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<span class="mw-page-title-main">Public company</span> Company that offers its securities for sale to the general public

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<span class="mw-page-title-main">Muddy Waters Research</span> American stock market research company and investment firm

Muddy Waters Research LLC is an American privately held due diligence based investment firm that conducts investigative research on public companies while also taking investment positions that reflect their research. It has exposed accounting problems and fraud at several companies, primarily in China but also in other countries in Asia, Europe and North America.

Carson Block is an American investor and the founder of Muddy Waters Research. He is known for documenting and alleging fraudulent accounting practices in publicly traded Chinese companies.

John Hempton is an Australian investor. He is the founder, co-owner and CIO of Bronte Capital Management Pty Ltd, a hedge fund management company.

<i>The China Hustle</i> 2017 American film

The China Hustle is a 2017 finance documentary produced by Magnolia Pictures and directed by Jed Rothstein. The documentary reveals systematic and formulaic decades-long securities fraud by Chinese companies listed on the US stock market.

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<span class="mw-page-title-main">Wirecard scandal</span> Series of accounting scandals in Germany

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In January 2021, a short squeeze of the stock of the American video game retailer GameStop and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit, although a number of hedge funds also participated. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities and cryptocurrencies also increased.

Hindenburg Research LLC is a U.S. investment research firm with a focus on activist short-selling founded by Nathan Anderson in 2017. Named after the 1937 Hindenburg disaster, which they characterize as a human-made avoidable disaster, the firm generates public reports via its website that allege corporate fraud and malfeasance. Companies that have been the subjects of their reports include Super Micro Computer, Adani Group, Nikola, Clover Health, Block, Inc., Kandi, Lordstown Motors, and Roblox Corporation. These reports also feature defenses of the practice of short-selling and explanations of how short-sells can "play a critical role in exposing fraud and protecting investors."

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<span class="mw-page-title-main">B. Riley Financial</span> American financial services company

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References

  1. 1 2 3 Chai, Barbara. "Why 'The China Hustle' is a finance documentary all U.S. investors need to see". MarketWatch. Retrieved May 6, 2018.
  2. 1 2 "Dan David Starts Research Firm Backed by Short-Seller Carson Block". Institutional Investor. Retrieved February 14, 2020.
  3. 1 2 3 Olson, Laura. "Republican Dan David makes 13 candidates in race to succeed Charlie Dent". themorningcall.com. Retrieved May 6, 2018.
  4. ↑ "Philly investor is a documentary film star on 'The China Hustle'". Philly.com. Retrieved May 6, 2018.
  5. ↑ Cohn, Nate (February 19, 2018). "The New Pennsylvania Congressional Map, District by District". The New York Times. Retrieved June 18, 2018.
  6. ↑ Development, PodBean. "The". wolfpackresearch.podbean.com. Retrieved October 22, 2020.
  7. ↑ "B Riley shares plunge after short seller Wolfpack Research takes aim". Reuters. February 8, 2023. Retrieved December 26, 2024.
  8. ↑ Kosman, Josh (August 12, 2024). "Exclusive | SEC probe of B. Riley widens as struggling firm's stock drops more than 50% on profit warning" . Retrieved December 26, 2024.
  9. 1 2 3 "About Dan | Dan David for Congress". dandavidforcongress.com. Retrieved May 6, 2018.
  10. ↑ GeoTeam. "Dan David, China Due Diligence". GeoInvesting. Retrieved February 2, 2021.
  11. ↑ Norris, Floyd (February 23, 2012). "S.E.C. Charges Reveal Fraud in Chinese Company". The New York Times. ISSN   0362-4331 . Retrieved May 6, 2018.
  12. ↑ Ermer, Brandon (March 30, 2018). "Discover a messy Wall Street scandal in 'The China Hustle'". The Eagle. Retrieved February 2, 2021.
  13. ↑ "Wolfpack Research launches to expose corporate fraud". CNBC. May 6, 2019. Retrieved February 16, 2020.
  14. ↑ "Dan David on Wolfpack Research's latest short: GTT". finance.yahoo.com. Retrieved February 16, 2020.
  15. ↑ Vargas, Claudia. "Democrat Madeleine Dean wins Pa.'s new-look Fourth Congressional District". inquirer.com. Retrieved February 16, 2020.
  16. ↑ "Discover a messy Wall Street scandal in 'The China Hustle'". The Eagle. Retrieved September 30, 2019.
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