Austin-based short seller Blue Orca has taken aim at $17 billion real estate investment trust Sun Communities, or SUI, accusing its chief executive of engaging in undisclosed transactions with an independent board member’s family. That board member oversees the CEO’s multi-million pay package as chair of the compensation committee, according to the short report.
Notably, Blue Orca, an activist investment fund with $122 million in assets under management, admits it is biased against SUI. For one, by holding a short position in the stock it stands to make significant gains if the share price declines. In a disclaimer, it states: “We are short sellers. We are biased…We have a short interest in SUI securities and therefore stand to realize significant gains in the event that the price of such securities declines.” Not to mention, it hedges its accusations against the company in a disclaimer that reads that it, “makes no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results to be obtained from its use. All expressions of opinion are subject to change without notice.”
