Safalow's company, PAA research put their clients into a COCO short position. It's impossible to say whether a Hedge Fund placed that New York Times article or Safalow placed it for them but it's obvious to anyone with a brain that the reason that the New York times used an obscure person like him for quotes and comments is that he made himself available (or his PR agent did). In other words he contacted them! Otherwise they would never have found him. Here is what he says on his webpage that his company is all about: Absolute Return Focus – We are strict followers of the mantra that “no one ever retired on relative returns”. Our long, short, and pair trade ideas are all held to the same standard – positive returns. Since inception, more than 70% of our investment ideas have generated positive absolute returns.
The Research Product
We expect to generate 6-10 investment ideas annually. Clients should expect a relatively equal mix of long, short, and pair trade ideas. Typically the introduction of an investment idea is highlighted by a lengthy report, which includes a comprehensive review of the company’s fundamentals and detail on our investment thesis. We also provide timely updates on each investment idea. Since inception, we have published more than 400 reports on the 35+ ideas we have introduced. Research reports are delivered via email and are also hosted on our website. Research on our website is organized by ticker and industry sector, which enables clients to easily locate the reports they are most interested in.
We do not have a “research coverage” model. Our research product emulates that of the “buy-side”. When catalysts are realized or the investment thesis changes, positions are closed out. We think this keeps the research product fresh and focused.
In addition to published reports, premium and institutional subscribers are able to access the full results of the proprietary surveys we conduct with our industry cont
Here are several quotes by Sarafalow on COCO's demise:
Even before the department placed Corinthian on the watch list, the company’s financial woes were evident, said Bradley Safalow, founder and chief executive of PAA Research, an independent research firm in New York.
In 2011, Mr. Safalow began advising clients that he expected Corinthian Colleges’ stock to fall to zero. It closed on Friday at 22 cents.
But he is not celebrating the company’s demise.
“The human impact here is fairly significant and unfortunate,” he said in an interview last week. “You would hope there would be some hard lessons learned by the Department of Education, Congress, the states and accreditors about how long this company was allowed to exist when outcomes were quite poor and major financial distress was evident.”
“Two years ago, Corinthian was deemed to have fallen short of the standards of financial responsibility,” Mr. Safalow said. “But the D.O.E. blinked. They could have accelerated the situation, but they didn’t want to close schools because that hurts students and taxpayers.”
I've had several of my posts deleted on here. Hope you get to read this before it dissapears. Today's (actually appears in Sunday paper) NY Times article is positive proof. Safalow is advisor to several major hedge funds. Here's his profile: Bradley Safalow founded PAA Research in April 2009 with the goal of bringing the “best of both worlds” from his experience on the buy and sell-side to clients. Mr. Safalow graduated with a bachelor’s degree in economics from the University of Virginia. He started his career in the leveraged finance group at JPMorgan. From 2002-2005, Mr. Safalow was the senior analyst covering the Business and Education Services sector at JPMorgan. After his time at JPMorgan, Mr. Safalow joined RiverEdge Capital, a global long/short equity hedge fund where he focused on small/mid cap stocks and short idea generation. He lives in Marietta, GA with his wife Enders and their sons Clasen and Garrett.