Gotham City Research, the vulture fund that accused Grifols of accounting falsehood on Tuesday after short selling 0.57% of its shares, practically closed its position yesterday, buying the shares of the Catalan manufacturer of blood products, as reported to the National Stock Market Commission.
Along with the short position of Gotham, which it maintained through its General Industrial Partners fund and reduced yesterday to 0.06%, it has also closed the short position Ako Capital, another hedge fund that had opened it more than a year ago and which until Tuesday’s collapse was accumulating heavy losses.
At Tuesday’s minimum prices, Gotham had accumulated a profit of 25 million euros on its operation, which if it had held the shares until today would have already been considerably reduced.
“How little conviction there is in the conclusions of their own investigation,” financial sources lamented this morning, recalling that the report presented yesterday valued Grifols shares at zero euros, and Gotham would have bought them at around 10 euros. The company lost 2.2 billion euros in market capitalization yesterday and the collapse caused heavy losses for many retail investors.
The purchases of bearish funds to close their position were one of the main drivers of the rebound that Grifols suffered yesterday on the stock market, of more than 42% from the lows of 7.41 euros that it marked early in the morning. Today, Grifols’ announcement of reaffirming the correctness of its operations and announcing legal actions against Gotham have skyrocketed the share price again: the shares rose by 11% on the stock market.
