Meet Viceroy Research, US-based short-seller now targeting Vedanta Group
What's the story
US-based financial research firm Viceroy Research has leveled serious allegations against mining tycoon Anil Agarwal's Vedanta Group. In an 87-page report, it has detailed several discrepancies in the operations of Vedanta Group companies. These include a bait and switch funding model, inflated asset values, capex fraud and governance failure. The firm claims that Vedanta is a "financial zombie" kept alive by cash transfusions from its subsidiaries. So, who is Viceroy Research? Let's find out.
History
Around 29 companies targeted earlier
Vedanta is not the first company to be targeted by Viceroy Research. In fact, it has previously scrutinized a total of 29 global companies, including tech giant AMD and Ebix. The firm's investigative reports often trigger market reactions and raise questions over corporate governance.
Work
Firm has published over 180 reports so far
Viceroy Research has built a reputation for its in-depth investigations, publishing a total of 180 reports so far. The firm recently turned its focus to Arbor Realty, against which it has already issued over two dozen publications. Other companies that have come under Viceroy's scrutiny include Adler Group, Abalance, Athenex, Caesarstone, Capitec, and Globe Life among others.
Research methodology
What does Viceroy Research do?
Viceroy Research describes itself as an investigative financial research group based in Delaware, USA. The firm maintains that its reports are for educational purposes only and reflect the authors' opinions based on the publicly available facts, field research, information, and analysis through due diligence. "We believe the publication of our opinions about public companies that we research is in the public interest," it states on its website.
Disclaimer
Firm won't be liable for trading losses
Viceroy Research also clarifies that it won't be liable for any direct or indirect trading losses caused by information in its reports. The firm advises readers to think critically about its opinions and conduct their own research before making investment decisions. "We are not registered as an investment advisor in any jurisdiction," the company has said.