Blue Sky Plunges After Short Seller Glaucus Questions Fund

(Bloomberg) -- Trading of Blue Sky Alternative Investments Ltd. shares have been halted after short-seller Glaucus Research Group questioned the company’s assets under management in a report.

Shares dropped as much as 16 percent to A$9.61 before the halt, the most since August 2016, after Glaucus said it had a short position in the Brisbane-based fund manager and valued the stock at A$2.66 at most. Glaucus alleged that Blue Sky’s fee-earning assets under management were an estimated 63 percent less than the reported figure, according to the report.

Blue Sky will review and respond to the report which could take up until the commencement of trading on April 3, according to a statement to the ASX. The company didn’t immediately respond to e-mail and phone requests for comment when contacted by Bloomberg News earlier Wednesday.

Before today, the shares had risen more than 1,100 percent since Blue Sky went public in Jan. 2012. The stock closed at A$11.43 on Tuesday.

Here’s a list of Blue Sky’s largest shareholders

This is the second time that Glaucus has targeted a company listed in Australia. The research firm in March 2017 issued a critical report on TFS, which was then renamed Quintis. Shares in the sandalwood producer fell about 80 percent before being suspended from trading last May. The company confirmed the appointment of KordaMentha as administrators in January.

©2018 Bloomberg L.P.

Bloomberg
Stay Updated With Stock Market News on BloombergQuint