Longtop Financial Technologies Ltd. (LFT) was sued in May by an investor alleging the company overstated profit margins and concealed adverse facts. The company’s auditor Deloitte Touche also resigned over false reporting by the company. The stock initially lost half of its value and later it was halted when it was trading around $19. Recently it started being traded over the counter. Unfortunately the latest price on the stock is only $0.36. Some of the hedge funds paid more than 100 times this value to acquire Longtop Financial.
Here are the biggest hedge fund losers in the Longtop Financial Technologies fraud:
Maverick Capital – Lee Ainslie: lost $92 Million
Tiger Global Management LLC – Chase Coleman: lost $48 Million
Cavalry Asset Management – John Hurley: lost $29 Million
Brookside Capital – Bain Capital: lost $21 Million
Steadfast Capital Management – Robert Pitts: lost $18 Million
Alkeon Capital Management – Panayotis Takis Sparaggis: lost $14 Million
You can see the rest of the losers here. These calculations assumed that these hedge funds didn’t increase or reduce their stock positions in Longtop Financial Technologies (LFT) since the end of June. We also didn’t take into account their options positions.