New York (HedgeCo.net) – After successfully exposing accounting problems with a number of Chinese firms trading on North American stock exchanges, Carson Block has launched a hedge fund. Block and his company, Muddy Waters LLC, gained fame several years ago as they questioned the accounting practices of several Chinese companies and then shorted the stocks.

The new venture is called Muddy Waters Capital LLC, and according to a recent Reuters’ article, the fund will use a combination of activism and long/short strategies with a slant toward short-selling companies. This bearish slant doesn’t come as a surprise given Block’s history of successfully betting on downside moves in stocks.

The article stated that the fund received an initial investment of $100 million and with the market turmoil we have seen in recent months, it wouldn’t be surprising to see the assets under management growing in the months ahead.

Rick Pendergraft
Research Analyst
HedgeCoVest