For Investors, a Little-Known Alternative to Groupon

Photograph by Tim Boyle/Bloomberg

With Groupon once again in the headlines over questionable accounting, some investors may be hunting a daily-deal investment that doesn’t offer the periodic jolts. Constant Contact hasn’t gotten as much press as Groupon competitors like LivingSocial, but it may be getting new attention, with Groupon shares off 27 percent so far this year. In a blog post, Barry Randall, founder of Crabtree Asset Management, called Groupon and Constant Contact a “pair trade,” a reference to the investing strategy of shorting one company and going long on another in the same sector. (Short interest in Groupon shares is about 60 percent higher than shorting of other Internet companies, as of March 15, according to Bloomberg data.)

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