Muddy Waters Research | Due diligence-based equity research on Chinese companies

Doing the Work
Wall Street Won’t

Muddy Waters peels back the layers, often built up by seemingly respected but sycophantic law firms, auditors, and venal managements.

DLocal Ltd.

Muddy Waters is Short DLocal Ltd. (DLO US)

Muddy Waters is short DLocal Ltd. (NASDAQ: DLO). DLO, a fast-growing payments company based in Uruguay, spun out of a high-risk processing business, has reported stellar growth and profitability that makes it an outlier. While we have found no pictures of its CEO wearing black turtlenecks, our res… more

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

HASI: Is There a Greater Fool? (HASI US)

Hannon Armstrong has still failed to publicly acknowledge – or deny – that in 2021, it booked ~$300 million of non-cash income that will never be collected. (This income, which HASI could have chosen to neutralize, largely arises from tax benefits that others claim, and is a quirk of the esoteric p… more

Sunrun Inc.

The Shade of Sunrun (RUN US)

Sunrun (RUN) continues the grand tradition of consultant-advised responses that largely avoid substance, yet span several pages. We herein focus the discussion on what was unsaid, and the little that was said.… more

Sunrun Inc.

MW is Short Sunrun Inc. (RUN US)

Muddy Waters is short Sunrun Inc. (RUN) because we see it as an uneconomic business built on three shaky pillars: The equity story of exaggerated “Subscriber Values” and “Gross / Net Earning Assets”, funding growth through abusing tax incentives, and issuing ABS that could be exposed to a RUN bankru… more

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

MW is Short Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI US)

We are short Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) because its accounting is so complex and misleading that its financial statements are effectively meaningless. HASI is a prime example of how public market incentives can warp a company into relentlessly destroying value… more

KE Holdings Inc.

MW is Short KE Holdings Inc. (BEKE US)

We are short BEKE because we conclude the Company is engaged in systemic fraud, by our estimate, inflating its new home sales GTV by over ~126% and its commission revenues by approximately ~77–96%. We found massive discrepancies between the transaction volumes, store count and agent count reported… more

Danimer Scientific, Inc.

MW is Short Danimer Scientific, Inc. (DNMR US)

Muddy Waters is short DNMR. We conclude that DNMR has significantly misrepresented the state of its customer relationships, product development, readiness to scale, and TAM for PHAs. Both the money that DNMR spent buying Novomer and the cash it intends to spend on capacity expansion strike us as H… more

Solutions 30 SE

Solutions 30: Locked Doors (S30 FP)

We have been short S30 since May 2019, and it has been a long and strange journey. We analogize the present situation to this: Imagine if you thought your partner is cheating on you with another. You arrive at your house at a moment you believe the cheating is taking place, and see your partner’s… more