Complaint Review: Spruce Point Capital
Spruce Point Capital Watch Out! New York New York
Recently I worked as an analyst doing consulting work for a small hedge fund in NYC called Spruce Point Capital Management. Initially I was very excited to work with the principal, Ben Axler, who impressed me with his interviews on Hedgeye TV. There, I got the image of a man who was highly professional, polished, and an expert in his field.
When he took me on to help with a project, I was genuinely thrilled. I thought, not only will I be working with one of the most up-and-coming hedge fund managers, I’ll also be working with an activist short-seller who fights to expose the unstable or even corrupt companies that are throwing the market off balance.
Yet from the first few weeks working on the project, I witnessed some troubling behavior in the company. The first warning sign came when I tried to find a reliable lab that could analyze the content of a target company’s product composition. I approached Axler with my suggestions, but he insisted that we use one particular lab, even though he couldn’t explain its advantage. When I asked questions about it, I was met with evasive answers and annoyance. From phone conversations I overheard, it appeared as if he had a deal with this lab – there was clearly nothing independent about the testing they conducted.
In addition to the shady situation with a lab, there were other instances where I got the feeling that Spruce Point Capital was manipulating data in the reports for its own benefit. The bottom line was always about justifying a short position, the facts took a backseat unless they were serving the Spruce Point narrative of a failed company. If information emerged that didn’t fit neatly into the one-sided story, I was told to disregard it.
In short, I would recommend analysts who are accustomed to working with rigorously ethical companies (as I was until now) to stay away! You are not only contributing to an illegitimate business – you are risking your own reputation by associating with this hedge fund. Don’t believe the hype about these trendy new funds.
As for investors, all I can say is, the information you read about in Spruce Point Capital’s reports is so carefully filtered that it is practically meaningless.
This is the first time and last time I work for this sketchy business masquerading as a financial firm.
This report was posted on Ripoff Report on 02/03/2016 02:35 AM and is a permanent record located here: http://www.ripoffreport.com/reports/spruce-point-capital/new-york-new-york-10023-5825/spruce-point-capital-watch-out-new-york-new-york-1284564. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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