The Chinese stock catastrophe du jour is Longtop Financial Technologies (LFT), whose auditor just resigned amid a host of apparent accounting irregularities.
The stock hasn’t traded since early last week, when at $19/share the company was worth a bit over $1 billion. Of course, that’s down from a recent high of $42.86, so we’re talking a company worth over $2 billion up until recently.
So who’s holding the bag here?
Well, atop the list of holders are your typical big name money managers: Fidelity has 7.3 million shares, and JPMorgan has 1.9 million shares.
But also right up there are two marquee hedge funds: Lee Ainslee’s Maverick Capital holds 5.6 million shares according to their latest 13-F (via Bloomberg, and Chase Coleman’s Tiger Global is next, with 2.5 million shares. In Maverick’s case, that’s a position worth nearly $100 million (at the recent low point).
Granted, we don’t know how the position might have been hedged, and we don’t know where it will open up, but presumably this is not something they’re eager to see.
Most of the time with these Chinese debacles, there are some pretty “sophisticated” investors who get slammed. In the case of CCME — another recent notable — Ace Hank Greenberg’s CV Starr was a major holder, as was