Hedge Funds: Quintessential Capital Takes Short Position in Akazooactivist hedge fund Quintessential Capital Management.

April 20, 2020 | Hedge Funds, News
https://dailyalts.com/wp-content/uploads/2020/04/52e3dc454954ab14f1dc8460962933771d36dced4e507441722b7ad5904dcd_640.jpg

Activist hedge fund Quintessential Capital Management is shorting music streaming company Akazoo (NASDAQ: SONG). The news sent shares of SONG down more than 22% on Monday.

“We believe Akazoo is a scheme orchestrated by management to profit while egregiously deceiving investors,” QCM managing partner Gabriele Grego said during the Inaugural Contrarian Investor Virtual Conference. “We see signs of very suspicious accounting manipulation.”

Grego cited issues with its tax statements and inconsistent cash flow.

Quintessential Capital Management on Akazoo

During his presentation, Grego suggested that the firm is engaging in shady revenue games by using shell companies outside the U.S. He noted that he traveled to various addresses in Europe where the firm claimed to have offices.

“All the places that we saw, Akazoo had left,” Grego said.

He said that the firm’s former parent company InternetQ was the only firm that still had an office – and it was in Athens. “They try to look like an international, multinational company but in the end, they’re only based in Greece,” he said.

Grego also questioned whether the company really had the 44 million customers it claims to use its platform. That user base is similar to that of Pandora. Grego believes that its subscriber figures, revenue, and profits could “be profoundly overstated.”

Quintessential Capital is based in New York.

Recent: Hedge Fund: Jana Partners Strikes Deal with Bloomin’ Brands on Directors

 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/12/defense-attorney-g17da42d37_640.jpg
Digital Assets: Mike Novogratz Hits Out At Sam Bankman-Fried, Calls For His Prosecution
December 2, 2022     Digital Assets, News

Mike Novogratz, the billionaire CEO of Galaxy Digital (TSE: GLXY), was unequivocally critical about Sam Bankman-Fried’s virtual New York Times (NYT) Dealbook Summit interview. “I’m hoping that the authorities get…

https://dailyalts.com/wp-content/uploads/2022/12/Home_Hero.png
FinTech: Monzo To Turn Profitable In 2023, Says CEO
December 2, 2022     FinTech, News

“We will be profitable in the next financial year,” TS Anil said at the summit on Thursday, though Monzo reported pre-tax losses of £119mn for the 12 months to the…

https://dailyalts.com/wp-content/uploads/2022/12/binary-geafeafdd2_640.jpg
Artificial Intelligence: OpenAI Launches ChatGPT, A New Conversational AI System
December 2, 2022     Artificial Intelligence, News

OpenAI has unveiled ChatGPT, a new AI system that interacts in a conversational way. As part of a dialogue format, ChatGPT answers followup questions, admits its mistakes, challenges incorrect premises,…

https://dailyalts.com/wp-content/uploads/2022/12/MKV-product-hero.jpg
Artificial Intelligence: Monarch’s Electric, Driver-Optional, Smart Tractor Now In Commercial Production

Monarch Tractor has rolled out the first production model of the MK-V tractor that combines electrification, automation, and data analysis to help farmers reduce their carbon footprint, improve field safety,…