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  "docSlug": "10dc4f9f3e31",
  "documentTitle": "American Tower (AMT)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2013-07-17 00:00:00",
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  "notes": "The slide highlights a discrepancy between analyst models (which lack FX forecasts) and actual market movements in currencies like the Indian Rupee and Brazilian Real.",
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      "text": "The chart below shows the performance since 2010 of four of the EM currencies to which AMT has directional exposure, the Brazilian Real, Indian Rupee, Ghana Cedis, and the South African Rand – a hedge fund using leverage for this trade would have been unhappy.",
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      "kind": "chart",
      "text": "Performance of EM currencies since 2010",
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      "text": "currency exposure: 36%",
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      "text": "It is crucial for investors to understand that AMT does not hedge its currency exposure, which puts its investments and cash flows at risk. AMT states that it does not hedge its currency exposure because hedges for these currencies are expensive. We estimate that AMT has exposure to emerging and frontier market currencies of approximately US$4.2 billion, or 36% of its long-lived asset base. The chart below shows the performance since 2010 of four of the EM currencies to which AMT has directional exposure, the Brazilian Real, Indian Rupee, Ghana Cedis, and the South African Rand – a hedge fund using leverage for this trade would have been unhappy.",
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      "kind": "paragraph",
      "text": "The table below compares the ask prices for one-year non-deliverable forwards on AMT's currencies versus the USD.",
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      "kind": "paragraph",
      "text": "None of the five sell-side analyst models we have reviewed have FX forecasts. Yet, in two of AMT's major currencies, Indian Rupees and Brazilian Reals, exchange rates have already moved substantially from prior year numbers.",
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      "kind": "source-note",
      "text": "58 One analyst projected the next two quarters currency exchange rates, and held currency constant thereafter.",
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      "kind": "source-note",
      "text": "Source: Bloomberg",
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      "kind": "table",
      "text": "FX rates as of July 12, 2013",
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