ClubCorp Falls After Short Seller Targets Golf-Club Operator
- Hedge fund Kerrisdale cites shrinking participation in golf
- ClubCorp runs mid-tier clubs that may be vulnerable, firm says
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ClubCorp Holdings Inc. shares declined after an attack by short seller Kerrisdale Capital Management, which says the country-club operator is worth less than a quarter of its current value.
Participation in golf is shrinking, particularly among younger players, and operating golf clubs is a capital-intensive business, Kerrisdale said in a report released on Thursday. That’s left ClubCorp vulnerable, the firm said. The company, which had a market value of about $866 million as of Wednesday’s close, is the largest operator of private country clubs in the U.S.