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

April 20, 2020 | Hedge Funds, News

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.


Latest Alternative Investment News

Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…

Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…

FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…

Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…