Just came across a Hedge Fund - Bronte Capital - that does a nice little business in discovering juicy financial frauds, then shorting the xxxx out of the companies and finally helping authorities and the marketplace discover the fraud and thus confirming their profits ! For example they were the first to identify the Longtop scram and made out like bandits on the deal. Neat stuff eh !
They also make investments in companies they think have a future but it looks as if they have most of their fun identifying and killing frauds.
Check out a few of their newsletters for examples.
One the interesting points they make however is that the Chinese market is riddled with fraud and corruption. They thought they could make a killing in the usual way but have discovered there is far more government support for these frauds than usual.
Well worth a read.
Any thoughts on this strategy for making a buck ?
Their blog makes for fascinating reading. Might be some good tips there.