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  "documentTitle": "Solutions 30 (S30)",
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  "authorName": "Carson Block",
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  "presentationDate": "2021-05-24 00:00:00",
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  "notes": "This is a page of text from a research note, likely authored by Carson Block (Muddy Waters Research), criticizing specific financial institutions and analysts.",
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      "kind": "callout",
      "text": "We wish sell-side analysts – who haven't the tools, inclination, or interest to do the work – would respect the segregation of our jobs and not offer hollow reassurances to investors in these situations.",
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      "text": "Franz Weis, Eva Fornadi, Denis Lepadatu, and Alistair Wittet at Comgest S.A.;\nUlrika Enhörning at Swedbank Robur Fonder;\nHarlan Hodes, David Tuttle, and Heather Waddell at Franklin Templeton.",
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      "text": "One would think that the cautionary tale of Heike Pauls and Wirecard would have chastened her, but it did not. Nor did it chasten Remi Grenu of Berenberg, who had continued to set up dates between management and investors throughout April and early May while maintaining a Buy rating. Maybe we think too highly of ourselves, but we really do find it audacious when these analysts, who seemingly have never demonstrated any competence in detecting malfeasance at public companies, act as though they can do our job (which is identifying malfeasance at public companies). We wish sell-side analysts – who haven't the tools, inclination, or interest to do the work – would respect the segregation of our jobs and not offer hollow reassurances to investors in these situations.",
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      "kind": "paragraph",
      "text": "All three fund groups added materially to their positions in the wake of the initial allegations. It's as though they were engaging in self-parody. Comgest's website emphasizes its commitment to ESG and states 'Investment Stewardship: Responsibility is built into our investment approach through our analysis of traditional metrics as well as ESG criteria.' Swedbank Robur's homepage talks of '...a focus on risk control' and states 'By carefully balancing risks and rewards, we strive to give our clients the highest possible risk-adjusted returns.' The overview for the Templeton Global Smaller Companies Fund mentions the 'extensive fundamental research' that goes into its investments. Just as with the sell-side wunderkinds, we wonder what actual analysis or work these portfolio managers did before risking the incineration of their clients' money.",
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      "text": "When 'Financial Analyst' Raphaëlle Poulain of Genesta wrote a December 14, 2020 report in response to the allegations titled 'In Gianbeppi We Trust', she illustrated an argument we've been making for many years: That the Sell-Side has redefined the word 'analysis' to mean 'Perform outsourced investor relations functions for covered companies.'",
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      "kind": "paragraph",
      "text": "anything. My role was to build models based on the companies' projections, and I was never asked to give my opinion on anything more important than our lunch options.",
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      "kind": "paragraph",
      "text": "Short sellers and value investors have frequently lamented the extent to which monetary policy and passive investing have warped markets. Clearly, idiots and incompetents in the investment industry play an important role too.",
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      "text": "It is shocking but not surprising how incurious-minded fiduciary investors are. We need to give special mention to fund managers at three firms for putting their clients' money where S30's mouth is:",
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      "text": "7 Authored by Carson Block\n8 https://www.berenberg.de/bws/App/compliance/en/showdoc/FR0013188844_eng.pdf.",
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