Kase Capital’s Whitney Tilson Makes Case for Short Against K12 Inc.

September 20th, 2013
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Following a page from the William Ackman playbook, Whitney Tilson has begun to publicly carp on a company in which he holds a short position. As reported by Reuters, the Kase Capital founder took on a short position in K12 Inc, an online education company, about a year ago, only to see its stock price rise 70 percent this year.

Citing the company’s questionable recruiting practices and its problematic position as a for-profit company generating profits off of non-profit charter schools, Whitney Tilson believes the bottom will fall out of K12 Inc. once it is fully investigated. Similarly, William Ackman of Pershing Square Capital Management, who made a $1 billion dollar bet against Herbalife, openly criticized the company’s business model and management practices.
For Detailed Investor Profiles on these Investors, click below:
Pershing Square Capital Management
Related People: Nicholas Botta; Roy J. Katzovicz; Scott Ferguson*; William 'Bill' Ackman
Related Entities: Leucadia Corporation (NYSE: LUK); Pershing Square Capital; Pershing Square IV; Pershing Square LP
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles

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