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Muddy Waters LLC founder Carson Block.
Muddy Waters LLC founder Carson Block.
(BENJAMIN MYERS/Reuters)

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Muddying the shorting strategy

What in the world of cocoa, coffee, cotton and cashews (among others) is Carson Block up to regarding Olam? One week after the short seller questioned the Singaporean commodity trader’s accounting and debt burden, no explanation has materialized and the shares are off just 5 per cent. Was the timing of the allegations poor, or is this unusual shorting strategy yet to play out? Regardless of what comes next, leaving at least five trading days between the claims and any proof is too long.