Shortseller: Expect Trump to make more anti-short statements

Market IntelThursday, Nov 21, 2024 8:10 am ET

1min read

Carson Block, CEO of short-seller Muddy Waters Capital, expects more anti-short rhetoric from President Trump during his administration.

Block said in an interview on Thursday that the populist strategies of Elon Musk and Trump are now aligned, both blaming short sellers for the declines in Tesla (TSLA.US) and Trump Media Technology Group (DJT.US). "We've had some rhetoric, and there may be more anti-short rhetoric," Block said.

Block noted in July that as part of populist messaging, "it's easy to demonize short sellers," despite increased demand for short sellers in the market.

Block said on Wednesday that he was shorting e.l.f. Beauty (ELF.US), claiming the cosmetics company inflated its revenue in recent quarters, while inventory increases were due to weak sales. e.l.f. Beauty said in a statement on Thursday that Muddy Waters made "many inaccurate statements" and expressed confidence in its financial performance.

Moreover, according to publicly available statements and research on Muddy Waters' website, the firm has opened at least four new short positions in the past 12 months.

Looking ahead, Block said that Republican administrations generally tend to be more relaxed on regulation, but he expressed skepticism about whether Trump would unwind some regulations, saying "who's going to lead the SEC is a question."

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