How to Influence a Company's Behavior Through Shortening

Being a short seller does not mean that you cannot affect the behavior of a company. But by and large, direct ownership opens more doors to conversations with company management. The other question that will continue to underpen these discussions is one about economic exposure versus ownership. And so if you then net out some of those risks, and therefore it looks like the portfolio is not exposed to that risk, then there's a risk that you are not reporting your full exposure to some bigger issues. We need to understand that just needs to be reported - which is why transparency element is so important.