Why We’re Selling Berkeley Lights Stock

September 15. 2021. 7 mins read

If you decide to bare your investing decisions for the world to see, you better do so with conviction. Unless your thesis changes, you should never sell a stock. When additional information becomes available that threatens your thesis, you ought to examine it objectively and act accordingly. That’s why when activist short-seller Scorpion Capital released a 158-page scathing report today on Berkeley Lights (BLI), we needed to reexamine our thesis.

Excerpt of Scorpion Capital's scathing report on Berkeley Lights. Credit: Scorpion Light
Credit: Scorpion Capital

For those of you that don’t know about activist short selling, here’s a primer.

About Activist Short Selling

Shorting a stock means you’re betting it will fall. If you short a stock, then publish a report telling the world it’s shite, that’s an apparent conflict of interest. Consequently, you’d better be damn sure what you’re saying is truthful and have the legal resources to defend yourself regardless. A successful and legitimate short activist will often go to great lengths to prove a thesis because their reputation and money is on the line.

The firm that released the report on Berkeley Lights today is called Scorpion Capital.

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