Muddy Waters Shorts Manulife on Risks in Hedge Fund Trial

Canadian insurer’s shares tumble after short is revealed
Block cites lawsuit, ‘issue of incompetence’ from the 1990s

Block explains the reasons behind the firm’s short position in Manulife Financial Corp.Source: Bloomberg)

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By Erik Schatzker, Katherine Chiglinsky, and Ivan Levingston

October 4, 2018 at 2:28 PM UTC

Updated on

October 4, 2018 at 7:59 PM UTC

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Muddy Waters has found its latest target: Canadian insurer Manulife Financial Corp.

Short seller Carson Block, who runs Muddy Waters, announced a short position in the firm Thursday, and said its life-insurance subsidiary just concluded a trial with a hedge fund that could lead to billions in losses. Block expects a verdict this year. Manulife said in a statement that it disagrees with Block’s conclusions.