UK markets closed

Muddy Waters blasts billionaire Richard Chandler as he ups his stake in NMC

Ben Woods

The scourge of NMC Health today attacked New Zealand billionaire Richard Chandler’s judgement as he increased his stake in the troubled hospital group.

Hedge fund Muddy Waters’ founder Carson Block pointed out that Chandler, who today upped his NMC stake to 3.18% from 2.7%, previously bet against his short position in China’s Sino-Forest, which went bust.

Block said: “Chandler’s investment in NMC Health is probably less moronic than his investment in Sino-Forest, which followed our report that established it as a zero. We don’t know whether NMC is a zero or something much less bad, and I’m not sure how another investor - particularly one whose past judgment in a similar situation was so bad - could have a clearer idea. It is simply not possible at this point for an investor to know how deep the rot goes at NMC.”

Chandler could not be reached for comment.

Muddy Waters has mounted attack on NMC, accusing the company of manipulating its balance sheet.

NMC’s founder BR Shetty stepped down earlier this month amid mounting questions over the company’s finances and ownership structure.