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Glaucus Research Shorts Australia's Blue Sky

Californian short seller Glaucus Research Group today announced a short position in Australian fund manager Blue Sky Alternative Investments Ltd. In its note, Glaucus stated: "We believe that Blue Sky is significantly overstating its fee earning AUM by reporting the gross value of certain assets as AUM instead of the fair value of the capital invested. Based on our analysis, we estimate that Blue Sky’s real fee earning AUM is at most $1.5 billion, 63% less than Blue Sky’s reported figure. We believe Blue Sky compensates for its overstated AUM by charging clients egregious management fees, which can reach up to 17%...