Zack Buckley Shorts China – Business Insider
The short story is that Zack Buckley, CIO of Buckley Capital Partners, went to China long a bunch of Chinese companies, and came home to the U.S. shorting the whole lot.
The long story, of course, is a bit more complicated than that.
Buckley started investing in November of 2007. He’d been reading about the art since the age of 16, and launched his fund in 2011 with “the goal to lead the life that Buffett lead.”
Naturally, that requires some innovative thinking.
When he started, cheap Chinese companies seemed like a great buy. After research into SEC filings and discussions with management Buckley started picking them up.
And that was fine, until he heard Lei Zhang from Hillhouse Capital speak at the Value Investing Congress later that year. Zhang said that probably 200 out of the 300-some Chinese companies traded in the U.S. are frauds.
“I thought to myself, why should I be long when he’s saying these companies are great shorts,” Buckley told Business Insider.
So he did what any enterprising hedge fund manager would do. Three months after he heard Zhang speak, Buckley went to China to see the companies he’d invested in for himself.