Muddy Waters, the hedge fund behind August’s short selling of shares in litigation finance group Burford Capital Limited (LON:BUR), has now trained its sights on NMC Health PLC (LON:NMC), voicing concerns about NMC financial statements.
Representatives of NMC Health were not immediately available for comment.
READ: Burford Capital under fire from Muddy Waters over 'illusory returns' from Napo case
According to the Short Tracker services, around 5% of the company’s equity is on loan to potential short sellers hoping to make money as the company’s stock falls.
Muddy Waters, founded by Carson Block, said it has a short position in NMC, though it didn’t disclose the size of its holding.
MW’s critical assessment of the NMC’s finances, contained in a comprehensive document that was publicly disseminated, sent the share price tumbling 22.7% to 1,997.5p.
Headquartered in Abu Dhabi and with branch offices in Dubai, Ajman and Al Ain, NMC is a specialist operator of private health facilities. Last year it turned over US$2.1bn.