TribLive – Two American hedge funds, Absaroka Capital Management LLC and EOS Holdings LLC, reported their researchers in China were arrested and/or threatened with death by thugs, police or both. The status of the Absaroka researchers is uncertain; three EOS workers were arrested and detained for five days. Though all three were released, two of them are under government-imposed travel restrictions.
New York Global, headed by controversial Chinese-American financier Benjamin Wey, said in a statement posted on its website in May that Chinese authorities arrested “several individuals who had been paid by identified short-seller hedge funds to supply fabricated data” on Chinese firms. By borrowing shares to sell, short sellers profit as a company’s share prices decline.
