Lemonade drops 11% after notorious short-seller says the stock should trade 43% below current levels
Will DanielJan 15, 2021, 03:48 IST
Lemonade
Lemonade stock fell as much as 11% on Thursday after a negative tweet from notorious short-seller Citron Research.
The online-insurance platform has outpaced the market considerably since its July IPO with shares up more than 130%.
Lemonade stock boasts a market cap in excess of $9 billion and trades at almost 100-times sales.
Lemonade s stock dropped as much as 11% on Thursday after
Andrew Left s notorious short-selling fund, Citron Research, predicted the online-insurance platform will fall back to $100.
Founded by Daniel Schreiber and Shai Wininger, Lemonade operates an online insurance platform that uses AI chatbots to help service customers.
Sophos Capital Management, the largest dedicated short selling firm in the world as recently as a year ago, is scaling back its hedge fund business, according to people familiar with the plans.
The move by founder Jim Carruthers widely considered a legend in the business comes as short sellers faced one of their worst years on record. Short-biased funds lost 47.59 percent through November, according to the HFRX Equity Hedge: Short Bias Index. This year isn t looking any better. The Goldman Sachs “most shorted” index of stocks was already up 13 percent in 2020 and more than 200 percent over the past year.
Carruthers did not respond to a request for comment, and his funds’ performance details weren’t publicly available. Menlo-Park-based Sophos reported $1.16 billion in regulatory assets under management, six separate hedge funds, and nine employees at the end of 2019. That made it larger than even Jim Chanos’ Kynikos Associates, which had slipped below the $1 billion ma