Short Seller Behind Globe Life’s Plunge Has Winning Record

(Bloomberg) -- The record drop in Globe Life Inc. this week extended a streak of wins for the short-selling group that released a report against the insurance company.
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Fuzzy Panda Research, an anonymous organization that puts out reports on companies whose stocks it’s betting against, was the best performing activist short seller in 2023, according to an analysis by Breakout Point of firms that made at least two calls. It found that the companies Fuzzy Panda shorted fell 63% last year on average.
Globe Life’s record 53% slump Thursday added to a successful start of the year for Fuzzy Panda, with shares of all three companies it has released reports on down so far in 2024. Its performance over the last few years stands out in what’s generally been a difficult backdrop for short sellers, who got hit in the meme-stock craze of 2021 and have been contending with a bull market.
“Even if Fuzzy Panda is not as well known as Muddy Waters, Gotham City or Hindenburg, their track record is one of the most impressive,” said Breakout Point’s Ivan Cosovic, the founder of the Düsseldorf, Germany-based data tracking firm. “This has made them almost an insider tip in the community of activist short sellers.”
Fuzzy Panda did not respond to a Bloomberg News request for comment.
Globe Life criticized the report — in which the short-seller claimed it uncovered “extensive allegations of insurance fraud ignored by management” — and said it would review its legal options. Shares of the company rose 20% Friday.
“We reviewed the report and found it to be wildly misleading, mixing anonymous allegations with recycled points pushed by plaintiff law firms to coerce Globe Life into settlements,” the company said in a statement.