Short Sellers Are Targeting These 5 Stocks

3. KE Holdings Inc. (NYSE:BEKE)

Float Shorted: 3.59%

Number of Hedge Fund Holders: 34

KE Holdings Inc. is China’s leading online and offline platform for real estate transactions and services. Muddy Waters Research is short KE Holdings as it suspects the firm of systemic fraud. The investment firm believes that KE Holdings Inc.’s (NYSE:BEKE) income figures for the second and third quarters are inflated by 77% to 96%, the overall turnover of new houses (GTV) is inflated by 126%, while the stock house turnover is overstated by 33%. The Board of Directors of KE Holdings Inc. (NYSE:BEKE) has authorized an independent audit committee to undertake an internal assessment of the principal claims in the Muddy Waters report. Of the 924 hedge funds in Insider Monkey’s database, 34 reported owning a stake in KE Holdings Inc. (NYSE:BEKE) at the end of Q4 2021, up from 26 in the preceding quarter.

In its Q3 2021 investor letter, Tao Value discussed its stance on KE Holdings Inc. (NYSE:BEKE). Here’s what the investment management firm said:

“As witnessed in the past quarter, the government intervention in Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We exited KE holdings (ticker: BEKE), for high potential regulatory risk and the passing of the visionary founder & CEO Zuo Hui (who was a core tenet of our original thesis).”